Name of the Project
Kayelekera uranium restart project.

Location
Karonga district, northern Malawi.

Project Owner/s
Lotus Resources.

Project Description
Kayelekera, currently under care and maintenance, successfully produced uranium in the past, having delivered about 11-million pounds of uranium to the market from 2009 to 2014.

A restart definitive feasibility study (DFS) confirmed Kayelekera as one of the lowest capital-cost uranium projects worldwide while having the ability to quickly restart production once a final investment decision has been made.

The DFS is based on an ore reserve estimate of 15.9-million tonnes at 660 parts per million uranium for 23-million pounds of uranium.

Average production is estimated at 2.4-million pounds of uranium a year over a 9.5-year life-of-mine (LoM). The LoM includes four years of stockpile treatment.

Potential Job Creation
More than 600 jobs will be created for the local community.

Net Present Value/Internal Rate of Return
Not stated.

Capital Expenditure
$88-million.

Planned Start/End Date
Fourth quarter of 2025.

Latest Developments
Lotus Resources has signed a mine development agreement (MDA) with the Malawi government – a major milestone for the Kayelekera mine’s redevelopment.

This agreement ensures the mine will operate under a stable fiscal regime and provides the necessary confidence for investors, the company has said.

The MDA guarantees a stability period of ten years during which the project will not be subject to any detrimental changes to the fiscal regime. 

Key tax terms are aligned with the restart DFS assumptions, including a royalty rate of 5% and a corporate tax rate of 30%. Relief is provided on resource rental tax and withholding tax, specifically as it applies to dividends to nonresidents.

There are exemptions for import and export duties, as well as excise and value-added tax on capital goods and specified consumables directly pertaining to mine production.

The MDA includes internationally recognised principles relating to legal protection on security of tenure, dispute resolution and expropriation. 

Lotus has said the agreement demonstrates the commitment by government to develop the local mining industry, a key pillar of Malawi 2063, its new economic vision.

Key Contracts, Suppliers and Consultants
Orelogy Mining Consultants (pit optimisation, mine design and production scheduling ore reserve); Gill lane Consulting (mineral resource estimate); Merrill Ford Independent Metallurgical Operations (metallurgical/process design); Steinert (ore sorting); Nagrom (metallurgical testwork); Senet (process plant and infrastructure, and cost estimate compilation); SLR Consulting (tailings and water); Mine Technics (openpit); SLR Consulting (plant); InfinityCorp (financial model); Dhamana (community and environment); and Mine Earth (mine closure plan and cost estimate).

Contact Details for Project Information
Lotus Resources, tel +61 89 2000 3427 or email info@lotusresources.com.au.