Lotus to save K25bn through grid connection

Lotus Resources Limited, owners of Kayelekera Uranium Mine in Karonga says it will save $14 million (K24.5 billion) annually from diesel costs when it connects the mine to the national grid this year. The company highlighted this in the latest investors presentation where chief operating officer Michael da Costa and his team assured investors that the project remains on track since it’s production restart in September 2025. The company, which earlier acknowledged higher operating costs due to acid supply challenges and cost of diesel for the onsite power station, says the grid connection projected by the fourth-quarter of this year, will result in some savings on operating costs.

“Kayelekera process plant is estimated to have a power demand of seven megawatts operating continuously. “Based on steady, state production of 2.4 million pounds per annum and other key assumptions include diesel price and grid utilisation levels. “Depending on the relative cost of diesel and grid electricity, there is a $12m and $14m potential saving in annual electricity cost,” he said.

Meanwhile, according to the presentation, Lotus is optimistic of achieving first uranium shipment next quarter (Q2 2026) as it targets starting receiving cash in third quarter (Q3) this year. It said product logistics are ready with first shipment expected to occur in Q2 2026 subject to final product certification with at least one converter which is expected by the end of February 2026. “As part of the product qualification process and acceptance of uranium ore concentrates, Lotus has received preliminary confirmation from one western converter that its initial product sample is within its required product specification parameters for the key elements,” reads part of the presentation.

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According to Da Costa, the ability to swap between converters means an account with at least one converter would provide Lotus with delivery flexibility across all contracts and for future sales. Meanwhile, the company has also projected its steady-state production (of 200 000 pounds per month) at Kayelekera to be achieved in Q2 after it was delayed in Q1 because of acid supply challenges which affected ramping up production. However, managing director Greg Bittar earlier expressed optimism that production ramp up to the steady state by Q2 will be achieved as they are currently resolving the acid supply chain logistics and progressing other initiatives to mitigate supply risks of other key reagents.

In an interview, geoscience expert in minerals, mining and metals Ignatius Kamwanje said the progress at Kayelekera Mine is impressive and a major boost to the economy. Chamber of Mines and Energy national coordinator Grain Malunga said they expect the mining sector’s contribution to GDP to grow to 12 percent by 2027 when Kayelekera Uranium Mine and other two mines will be in full operation.

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