Lotus Resources Limited has said re-opening of the Kayelekera Uranium Mine in Karonga will be in June, with processing of the mineral expected to start within the third quarter of this year.
This reassures the projections of the best case scenario of reopening the mine, which the World Bank hinted would generate total revenue worth $1.69 billion over the mine life.
The company officials met Minister of Mines Ken Zikhale Ng’oma to update the government of the progress in bringing back the mine into operation.
Lotus has been working on reopening of the Kayelekera Uranium Mine in Karonga following the acquisition of the facility from Paladin Africa Limited and was given a mining license in 2024.
Lotus Managing Director Greg Bittar has since assured that the company was on the right track to resuscitate the mine.
“Operations will resume in June 2025 with production of the first product expected one or two months after the resumption of production,” he said in a statement.
The development follows the recent announcement by Lotus of a major binding offtake contract signing with an undisclosed North American energy company that has committed to purchase 300 tons of uranium once production resumes.
This latest contract signing makes total offtake agreements to reach about 1,600 tons, positioning the mine well for sustainable operations.
“Formalising this offtake arrangement with a key customer is an important milestone for Lotus as we continue to progress production restart plans at Kayelekera towards our third quarter of 2025 goal,” Bittar said.
The company indicates that the Kayelekera mine has a total available mineral resource of 25,550 tons of uranium as historical records show the mine produced 5,500 tons of uranium between 2009 and 2014 before it was closed.
Meanwhile, uranium prices had mixed performance in the year 2024, with reported spot price peaking at $106.75 per pound in February before dropping to $77, according to Carboncredit.com.
Looking ahead, several factors are giving confidence in the market as 2025 is projected to be a good year, owing to persistent supply crunch, growing focus on nuclear energy, global energy policies, and geopolitical shifts expected to drive demand in the future.
“While short-term volatility may persist, experts predict uranium prices will rebound to $90–$100 per pound by mid-2025,” says the website.
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