Lotus Resources (ASX:LOT) has initiated cold commissioning at its Kayelekera Uranium Project in Malawi, signaling progress toward the planned production restart next quarter. This phase involves rigorous testing of equipment to ensure operational readiness before the introduction of ore and reagents. Mining is scheduled to commence in Q4 2025, utilizing existing stockpiles until the mining equipment delivers the first ore.
To support the project, Lotus Resources has secured a revised non-binding term sheet for a US$30 million working capital facility with Standard Bank, intended to cover working capital needs until positive cash flow is generated from Kayelekera’s production. The company is also finalizing an US$8.5 million equipment finance facility with First Capital Bank to fund mobile and mining equipment.
Lotus Resources is adopting an owner-operator mining strategy, requiring an initial investment of US$8 million in mining equipment. Managing Director Greg Bittar emphasized that this approach will reduce mining costs, representing a third of the C1 cash costs, and offer greater control over production and run-of-mine management. The Kayelekera Project boasts a 10-year mine life with an estimated total production of 19.3 million pounds of triuranium octoxide and expects to have an annual production of 2.4 million pounds over the first seven years.
