Malawi Govt. renews licenses for Kayelekera uranium project

By Wahard Betha

Malawi’s Ministry of Mining has renewed mining and exploration licenses for Kayelekera Uranium Project, owned by ASX-listed Company Lotus Resources Limited.

A statement released by Lotus says the Mining Licence, ML0152, for Kayelekera Mine was signed by the Minister of Mining Rashid Abdul Gaffar, on September 1, 2021 in accordance with the Mines and Minerals Act and has been renewed for 15 years.

Lotus Managing Director Keith Bowes commended approval of the licenses saying it will give the Company an opportunity to develop the mine to continue benefitting communities around it and also the economy of the country at large.

Bowes said: “We are delighted to have received an extension of our Mining Licence for an additional 15 years.

“This is a critical step, as it provides certainty and confidence to our investors that Lotus has the full backing of the Malawi Government to continue our on-going development of Kayelekera, as we position the Project to be one of the first assets to recommence production in an ever improving uranium price environment.”

“It is important to highlight that a restart of operations also provides significant benefits to the local communities and Malawi as a whole through employment, development of local communities, taxes, royalty streams and profit share to the Government of Malawi, which is a 15% owner of the Project.”

“We would like to thank our local team who have worked closely with the Government through this process, as well as Malawi’s Minister of Mining, The Honourable Mr. Rashid Gaffar, and the Malawian Government for their continued support.”

Meanwhile, the Company continues to be active in the area of Corporate Social Responsibility as it completed the Kayelekera Community Clinic, which is now fully operational.

The Company is currently engaging members of the communities in the areas surrounding the mine to acquire a list of development projects which it will consider including in the Community Development Agreement (CDA), which is a requirement stipulated in the Mines and Minerals Act 2019 for large scale mines.

A scoping study done by the company confirmed that Kayelekera has a 14-year mine life

Lotus Resources Limited owns an 85% interest in the Kayelekera Uranium Project in Malawi with the rest of the shares owned by Malawi Government.

The Project hosts a current resource of 37.5Mlbs U3O8, and historically produced ~11MIb of uranium between 2009 and 2014. Lotus Resources Limited completed a positive Restart Study which demonstrated that Kayelekera can support a viable long-term operation and has the potential to be one of the first uranium projects in the world to recommence production in the future.

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