Lotus Resources says Kayelekera uranium mine in Malawi on track for Q2 output

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Lotus Resources Ltd (ASX:LOT) said it remains on track to achieve nameplate production at its Kayelekera uranium mine in northern Malawi in the second quarter of 2026, as ramp-up continues despite emerging supply pressures across global markets. Kayelekera, an open-pit uranium mine, restarted production in August 2025 on time and on budget following a period of care and maintenance, and has shown consistent operational improvement through late February and March. The Australian company said its supply chains remain resilient, supported by forward contracting and diversified sourcing across critical inputs including diesel, sulphuric acid and sulphur, even as geopolitical tensions and freight costs weigh on global supply conditions . Diesel , a key operational input, has been secured through to the end of June at prices below current spot levels, with no indication of supply disruption from contractors. Lotus added that it is evaluating additional contracts for the second half of the year while monitoring price volatility. Reagent supply has also strengthened, with the company building on-site inventories of sulphuric acid and maintaining a steady pipeline of deliveries. While logistics remain intact, Lotus flagged ongoing pressure on pricing and freight costs, and said it is progressing further orders to mitigate third-party risk. Sulphur supply is secured through to June, with key suppliers holding inventory in Tanzania . Lotus said its volumes are relatively small within East African supply chains, limiting exposure to disruption, but it is nonetheless assessing alternative supply routes and additional storage capacity, including offsite options, to support commissioning of its acid plant from April. The commissioning of the acid plant is expected to improve reagent security and reduce reliance on external suppliers, supporting operational stability as the mine approaches steady-state production. Kayelekera remains central to Lotus’ growth strategy as it seeks to re-establish itself as a uranium producer. The asset historically produced around 11mn pounds of uranium between 2009 and 2014 and hosts substantial remaining resources and reserves. Across its broader portfolio, Lotus also holds a 100% interest in the Letlhakane uranium project in Botswana , alongside its 85% stake in Kayelekera, positioning the company to expand production capacity over the medium term. The ramp-up comes as uranium prices have risen to around $80–90/lb in recent months, driven by renewed nuclear demand and constrained primary supply, according to industry data from the World Nuclear Association and S&P Global . This strengthening price environment supports the restart of assets such as Kayelekera, where operators are seeking to bring idled production back online amid tightening market conditions. © 2026 bne IntelliNews, source Magazine

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