Refurbishment and restart works at ASX-listed Lotus Resources’ Kayelekera uranium project, in Malawi, continue to progress as planned, with first uranium production on track for the third quarter of this year.

Overall, mechanical and electrical progress is over 80% complete, with all key operational roles now appointed and a restart workforce of more than 300 local and expat personnel on site.

Lotus notes that heavy mobile equipment or run-of-mine (RoM) fleet have been ordered and will be mobilised in May, while drying and packaging steel fabrication have been completed and calciner and screw feeders are on site.

The company says more than 50% of the diesel power station overhaul and refurbishment is complete, with acid plant civil works nearing completion.

Lotus says it is also finalising the appointment of a mining contractor, with the preferred contractor – from South Africa – already selected.

The company says the preferred contractor has extensive experience in mining and construction and has a significant balance sheet.

Key operations management personnel, including processing manager, mining engineer and maintenance manager and maintenance planner, have been recruited, completing the senior Kayelekera operational team.

The mining workforce will be predominantly Malawian, and the personnel will be accommodated at the project’s accommodation village, and as such will work on a fully integrated basis with the Lotus team.

“The Lotus team has done a terrific job in continuing to focus on delivering the Kayelekera restart on time and within budget. Refurbishment of the plant is progressing in line with the accelerated restart programme plan and we remain on track for commencement of production in the third quarter of calendar year 2025,” says MD Greg Bittar.

Meanwhile, Lotus says the environmental- and social-impact assessment and radiation licence applications have been lodged, with approvals expected in the second quarter of this year.

The company says it is also finalising power grid connection negotiations with the Electricity Supply Corporation of Malawi (Escom) and contractors.

Meanwhile, Lotus points out that four binding offtake agreements are now in place representing close to 40% of 2026 to 2029 production, at an escalated fixed price, with contract pricing based on an agreed dollar base price referenced from the current published long-term prices with escalation – delivering a “very attractive” margin over Kayelekera’s expected all-in-sustaining cost.

The company points out that uranium from Malawi is exempt from the latest imposition of US import tariffs, noting that the term price has remained steady at about $80/lb of triuranium octoxide.

Lotus says there are two export logistics paths to market, with Dar es Salaam, in Tanzania, and Walvis Bay, in Namibia, identified as preferred export hubs. The company says it is finalising transport contracts with Tier 1 providers.

Lotus notes that it remains fully funded to complete the restart, with $112.7-million cash at the end of March and no debt drawn.

While global markets have experienced significant volatility, the company notes that uranium prices have been steady in the early weeks of the US imposition of tariffs and Lotus has been able to lock in additional offtake arrangements to take advantage of solid uranium term prices in the market.

“Utilities continue to engage in negotiations for both near-term and long-term offtake, showing enthusiasm for supporting new uranium supply,” says Bittar.