Lotus Resources Secures Key Regulatory Nod to Restart Kayelekera Uranium Mine in Q3 2025

Regulatory Green Light for Kayelekera Restart

Lotus Resources Limited has achieved a significant milestone in its plan to restart uranium production at the Kayelekera Uranium Project in Malawi. The company’s 85%-owned subsidiary, Lotus (Africa) Limited, has secured approval from Malawi’s Atomic Energy Regulatory Authority (AERA) to resume mining and processing operations. This regulatory endorsement is one of the last major hurdles before production can recommence, with operations on track to restart in the third quarter of 2025.

AERA’s approval followed a thorough review of Lotus’ submitted documentation, including the Provisional Mine Closure Plan, which the regulator found satisfactory. AERA has also indicated it will conduct a verification inspection at the site once operations begin, underscoring the ongoing oversight and commitment to safety and environmental standards.

Environmental Approvals and Community Engagement

While the radiation licence from AERA marks a pivotal step, Lotus is concurrently working with the Malawi Environment Protection Agency (MEPA) to secure final environmental approval. The company submitted its final Environment Social Impact Assessment (ESIA) in early April 2025, and MEPA conducted a site visit on 24 April as part of its assessment process. Finalisation of this approval remains a key pending milestone before full-scale operations can resume.

Lotus Managing Director Greg Bittar emphasized the company’s commitment to safety and community engagement, stating that the restart will be managed with a focus on protecting onsite personnel, local communities, and the environment. This approach aligns with Lotus’ broader strategy of creating lasting value and positive impact in the regions where it operates.

Resource Base and Operational Outlook

The Kayelekera project boasts a substantial mineral resource inventory, with a total of approximately 46.3 million pounds of uranium (U3O8) including measured, indicated, and inferred categories. The project previously produced around 11 million pounds of uranium between 2009 and 2014. A recent Restart Study confirmed an Ore Reserve of 23 million pounds U3O8, demonstrating the project’s viability for renewed operations.

In addition to Kayelekera, Lotus holds 100% ownership of the Letlhakane Uranium Project in Botswana, which contains an even larger resource base of approximately 113.7 million pounds of uranium. Together, these assets position Lotus as a significant player in the African uranium sector, with a clear pathway to production growth.

Market and Sector Implications

The regulatory approval from AERA and progress towards environmental clearance signal growing momentum for uranium supply expansion amid a tightening global market. As nuclear energy gains renewed interest for its low-carbon credentials, projects like Kayelekera are poised to attract investor attention. However, the timing and scale of production ramp-up will depend on final regulatory approvals and operational execution.

Investors will be watching closely as Lotus navigates the final stages of its restart plan, with the potential for production to contribute meaningfully to the company’s revenue profile and the broader uranium supply landscape in the near term.