AUS
NZ
UK
CA
USA
FRA
GER
ESP
ITA
NLD
PRT
SWE
GRC
IND
POL
BRA
ZAF
RUS
CHN
UAE
Highlights
Lotus Resources (ASX:LOT) has commenced cold commissioning at its Kayelekera Uranium Project in Malawi ahead of restart.
Mining operations are set to begin later this year, supported by secured working capital and equipment finance facilities.
The company has shifted to an owner-operated model to enhance operational control and reduce costs.
Lotus Resources (ASX:LOT), a uranium-focused company listed on the ASX 200, has initiated the cold commissioning phase at the Kayelekera Uranium Project located in Malawi. The project, which is currently in the lead-up to production restart, is undergoing equipment testing to ensure mechanical and functional readiness.
Cold Commissioning Phase Underway
The cold commissioning process involves testing all equipment and systems prior to the introduction of ore and reagents. This stage ensures that all components meet performance expectations under simulated operating conditions using water or similar fluids. It marks a significant step in the restart timeline of the uranium facility.
Lotus has already stationed the necessary tools and equipment onsite to manage its run-of-mine stockpiles. Initial production ramp-up will rely on the ore previously mined and stockpiled, while full mining activity is scheduled to commence in the final quarter of the calendar year.
Securing Capital for Restart
To support ongoing operations and restart-related expenses, Lotus has entered into a revised non-binding term sheet with Standard Bank. This agreement, facilitated through the company’s majority-owned subsidiary Lotus Africa, will provide a working capital facility aimed at maintaining liquidity until the project achieves self-sustaining output.
Key terms include a two-year duration from signing, monthly repayments beginning in early 2026, and a drawdown period capped at under two years. In addition, interest will be charged on a commercial basis tied to established overnight finance rates.
Further bolstering its capital position, Lotus is finalising binding documentation for a separate equipment finance facility with First Capital Bank. This funding is designated to cover the procurement of mobile and mining machinery required for full-scale operations.
Owner-Operator Mining Strategy Adopted
In a strategic shift, Lotus has opted to proceed with an owner-operated mining model rather than contracting third-party operators. The decision comes in response to the limited availability of mining services in Malawi, where infrastructure and industry support are still developing.
This approach enables Lotus to exert direct oversight over mining production, road maintenance, and tailings management. The model is expected to yield cost savings, particularly as mining expenses make up a significant share of the overall operational budget.
The company has already allocated resources towards acquiring mining tools and heavy equipment to facilitate this strategy. With the operational team and site management in place, the company is positioned to independently carry out the full suite of mining activities.
Long-Term Production Forecast
The Kayelekera Project holds a forecasted mine life spanning a full decade, with total uranium output projected in the multi-million-pound range. Annual output during the initial operational phase is expected to be steady, supporting the long-term viability of the site.
Lotus Resources, headquartered in Perth, continues to progress its uranium development agenda in southern Africa. As a constituent of the ASX 200, the company’s activities contribute to the broader energy and materials sector represented on Australian indices including the ASX 100 and All Ordinaries.
