Lotus Advances Uranium Projects Amid Market Tightening and Production Challenges
Lotus Resources has marked a major milestone with first yellowcake production at its Kayelekera uranium mine in Malawi, progressing steadily towards full production in early 2026 while advancing its Letlhakane project in Botswana.
- First yellowcake produced at Kayelekera on schedule and within budget
- Ramp-up to steady state production of ~2.4 million pounds uranium planned for Q1 2026
- Letlhakane project drilling underway to upgrade resource classification
- Metallurgical testwork supports low acid processing flowsheet reducing costs
- Raised A$65 million via equity placement; secured US$8.5 million equipment finance facility
Milestone Achieved at Kayelekera
In a significant development for the uranium sector, Lotus Resources Limited has successfully produced its first yellowcake at the Kayelekera uranium mine in Malawi. This achievement, reached in late August 2025, marks the company’s transition into the ranks of global uranium producers. The restart of Kayelekera was executed on schedule and within budget, a notable feat given the mine had been on care and maintenance since 2014.
The initial production phase utilised ore reclaimed from existing stockpiles, with substantive mining operations set to commence in the final quarter of 2025. The processing plant has been fully commissioned, and ramp-up activities are ongoing, targeting a steady state production rate of approximately 2.4 million pounds of uranium per annum by the first quarter of 2026.
Advancing Infrastructure and Environmental Compliance
Alongside production ramp-up, Lotus has progressed key infrastructure projects including the refurbishment of the acid plant, expected to be completed by early 2026, and the commencement of power grid connection works aimed at reducing operational costs and carbon emissions. The grid connection, planned for completion by the end of 2026, will transition the mine from diesel-generated power to Malawi’s largely hydro-powered national grid.
Environmental and social governance remains a priority, with the mine’s Environmental and Social Impact Assessment re-approved by Malawi’s Environment Protection Authority. Lotus has also engaged with local communities and authorities to enhance safety planning and foster positive relations.
Letlhakane Project, Resource Upgrade and Process Innovation
Meanwhile, Lotus is advancing its Letlhakane uranium project in Botswana, initiating an extensive infill drilling program designed to upgrade a significant portion of the resource from Inferred to Measured and Indicated categories. This drilling campaign, involving approximately 180 holes, is expected to span several months and is critical to underpinning a comprehensive Pre-Feasibility Study scheduled for the second half of 2026.
Complementing the drilling, metallurgical testwork conducted by the Australian Nuclear Science and Technology Organisation has demonstrated the viability of a low acid consumption processing flowsheet. This innovation could reduce acid use by around 70% with only a modest 6-8% reduction in uranium recovery, offering potential cost savings and environmental benefits.
Strong Financial Position and Market Context
Financially, Lotus bolstered its balance sheet by raising A$65 million through a strategic equity placement, attracting strong institutional demand domestically and internationally. The company also secured an equipment finance facility of US$8.5 million to support mining operations, with the first drawdown occurring post-quarter.
The uranium market backdrop remains supportive, with spot prices reaching near US$84 per pound during the quarter, driven by supply constraints and increased demand signals such as utility contract activity and strategic stockpiling initiatives. Industry dynamics, including production cuts by major suppliers and expanding nuclear capacity forecasts, underpin a positive outlook for uranium producers like Lotus.
Corporate Developments and Sustainability
On the corporate front, Lotus appointed Melissa Roberts as Chief Financial Officer, bringing extensive global resources sector experience. The company reported no health and safety incidents during the quarter, maintaining a strong safety record. Community engagement efforts continued, focusing on employment, education, and emergency preparedness in mining-affected areas.
Bottom Line?
With Kayelekera’s ramp-up on track and Letlhakane’s resource upgrade underway, Lotus Resources is poised to capitalize on tightening uranium markets in 2026 and beyond.
Questions in the middle?
- How will the transition to grid power impact Kayelekera’s operating costs and carbon footprint?
- What are the expected timelines and outcomes for the Letlhakane Pre-Feasibility Study?
- How might evolving uranium market dynamics influence Lotus’ financing and production strategies?