Malawi Uranium Mine Secures $38.5M Financing for 2025 Restart
The restart comes as Malawi emphasises mining alongside agriculture and tourism as key economic pillars.
KARONGA, Malawi — Lotus Africa Limited has secured $38.5 million in equipment and working capital financing from two Malawian banks to restart uranium mining operations at the Kayelekera mine, company officials announced Wednesday, writes Victor Musongole.
Standard Bank Plc and First Capital Bank provided term sheets allocating $18.5 million for equipment purchases and $20 million in working capital for the northern Malawi mine, which has been dormant since 2014.
"With the restart capital fully funded to first production by our recently completed A$130m equity placement, these finance facilities provide Lotus with working capital," said Greg Bittar, Managing Director and CEO of Lotus Africa.
The financing follows a Community Development Agreement signed on January 6 and puts the mine on track to resume production in the third quarter of 2025.
Lotus has already secured uranium supply contracts with Curzon Uranium and PSEG for 1.5 million pounds to be delivered between 2026 and 2029.
The mine, 85% owned by Lotus Resources Ltd with the Malawian government holding the remaining 15%, is expected to employ 444 Malawians, representing 85% of its workforce.
It previously operated from 2007 to 2014 under Paladin Africa before closing due to declining uranium prices.
The restart comes as Malawi emphasises mining alongside agriculture and tourism as key economic pillars.
Officials expect the operation to generate significant foreign exchange earnings and stimulate local business activity.