Mining & Trade News

Local Artisanal and Small-scale Miners (ASMs) and Gemstones dealers have called on the Malawi Government to remove the newly introduced restrictions on the exportation of gemstones saying they are greatly affecting their business.

The Ministry of Mining recently banned exportation of gemstones and precious minerals and the Malawi Revenue Authority followed up with a notice that included “unmanufactured gemstones” among the list of restricted and prohibited imports/exports.

“Due to the ban, our markets have been taken over by our competitors and it will not be easy to gain the trust of our customers since it manifests that our country is unstable. No international buyer would want to be associated with such a country. We are, therefore, making losses and cannot service loans,” said MD for Maleta Gems and Jewelry Percy Meleta.

Maleta explained that the Government is missing the point if it thinks the ban is one way of reforming the sector saying the only way Government can reform the gemstone industry is to train more gemologists, promote value addition, create more functional mining cooperatives and ease the export process.

He said: “Equally, the Government should train its staff. We need more gemologists in Government with the right equipment and exposure to the world of gemstones.”

“Make the export process seemless, create a one-point centre unlike what is happening now where by one has to go to so many government offices to get an export permit.”

Maleta also advised the Government to learn from other leading countries like Zambia in terms of gemstone marketing, in order to make the gemstone sector attractive.

He said countries with competitive gemstone industry are reducing or removing taxes to facilitate more exports which in turn brings more forex, create more jobs as well as entice more investors.

In a separate interview, gemstone miner and dealer Chikomeni Manda also bemoaned the ban saying engaging the exporters would have been ideal before shutting down the system completely.

Manda said the reasons that led to the ban were unjustifiable and retrogressive to the sector whoe market is always unstable in nature.

He said: “The way they did it was not a proper way because they could have engaged gemstone dealers on the problems to map the way forward.”

“Even though some stones might be undervalued, when exporting they go through all appropriate channels such that we have gemologists who evaluate these stones in accordance with the prevailing market situation.”

“The gemstone market is different compared to that of other minerals. You can sell the same stone today at a high price, come tomorrow it goes at a lower price so in that scenario amount of revenue differ. As we speak, gemstones market is very down and dealers are struggling a lot in terms of marketing and pricing.”

Manda also explained that the nature of gemstone market dwells on quantity but not quality, such that some stones are sold in high volumes hence are very cheap.

He observed that the ban has only negatively impacted revenue collection from the industry and few dealers who export through right channels but fueled smuggling as many dealers continue to export the stones to bordering countries, which are later traded on the world market as mined in those nations.

Manda said: “If they are emerging issues it is better for the government to engage dealers not coming up with such decisions.”

“People think each and every gemstone is worth a fortune and the market is stable all the time, but go to Export Development Fund (EDF), being a government entity that is buying the stones. They are even struggling to find market for rhodolite and what more to a dealer who is just trying to survive.”  

“So, the government has to address the main challenge which is smuggling not go against those using right channels.” Meanwhile, the Mining Ministry is requesting all gemstone license holders who exported minerals between January 1, 2024 to February 17, 2025 to submit all their export returns to Mining and Minerals Regulatory Authority (MMRA), in order to be granted export permits.

Stakeholders in the minerals sector have expressed concern over low budget allocation to the mining sector in the 2025/26 national budget saying it does not reflect government plans of transforming the sector as outlined in Malawi 2063 and the Agriculture, Tourism and Mining economic strategy.

On February 28, 2025, Minister of Finance and Economic Affairs Simplex Chithyola Banda presented before the National Assembly the 2025/26 Budget worth MK8.05 trillion allocating MK14.2 billion to the mining sector.

Out of the MK14.2 billion, MK5.1 billion has been earmarked for Mining Regulatory Authority; K4 billion for the establishment of the state owned mining company that will operate under Malawi Development Corporation (MDC); K4.1 billion for Mining and Geological Services; and K1 billion for the Mineral Laboratory in Lilongwe.

But in an interview with Mining and Trade Review, National Coordinator for Natural Resources Justice Network (NRJN) Kennedy Rashid said despite that the allocation has increased with 160% from MK5.5 billion in the previous budget, the MK14.2 is still not enough considering the requirements in the sector.

Rashid said: “From the look of the overall increase in funding, the indication is that there is some intent to develop the mining sector from government considering that the previous year the sector got only 5.5 billion Kwacha.”

“The allocations of the current 14.2 billion kwacha still is not yet convincing. Specifically, on how the funding has been allocated. A huge chunk, 5.1 billion Kwacha, has been allocated for regulation. Our understanding is that government wants to mainstream regulation of the sector first which can assist in the compliance and enforcement of laws and regulations.”

“Even though the regulation has received significant funds in the current budget, what will matter is how such funds will be used and if it will be used largely on administration costs then this will impede the other functions of the regulator.”

Rashid also said though the allocation to the state-owned mining company is still on the lower side, it indicates the intention of government to start participating directly in mining sector operations.

He said if well governed, the state-owned company can assist in facilitation of the local beneficiation drive and job creation.

Rashid said: “While the 2025/2026 budget has increased overall mining sector funding, the Ministry of Mining has received only part of the 4.1 billion Kwacha allocated to both the Mines and Geological Survey Departments. This could mean continued operational challenges for the departments as they have to share a minimal allocation for their operations like the collection of other revenues by the Department of Mines and geological data collection by the Geological Survey Department.”

“The allocation for the mining laboratory is still on the lower side for the lab to be operational with modern standards and equipment.”

Concurring with Rashid, Coordinator for Chamber of Mines and Energy, Grain Malunga said the Malawi Government needs to put more effort to ensure that the state-owned mining company is fully funded and functional.

“What is needed is to fund the Company to embark on mining for import substitution, mining and processing of industrial minerals, management of government equity in mining and support Artisanal and Small-scale Miners in mining, processing and marketing,” said Malunga.

In his remarks, Seasoned Geoscientist Ignatius Kamwanje said even though the Government is doing well on inclusive sector transformation, low funding will still obstruct implementation of the viable incentives.

Kamwanje said: “The funding itself is not enough to run the sector hence limiting incentives. However, in terms of inclusive sector transformation, the government is partly giving a true reflection.”

“There is need to scale up capacity building and formalization of ASM, I do not see a visible government involvement in this aspect.”

Government outlines in the budget statement that it is implementing key programmes and projects to strengthen the mining sector and maximize its economic potential including: reviewing gemstone export procedures to enhance transparency and accountability in management of foreign exchange earnings from gemstones; facilitating the commencement of large-scale mining projects; strengthening enforcement and inspections to ensure compliance with mining regulations; conducting geological mapping to identify more potential mineral deposits of high value; conducting mineral processing research and analytical laboratory services to improve mineral value addition; and carrying out mining investment promotion to attract investors and stimulate sector growth.

Mineral sector experts have advised mining companies and the Malawi Government to fully engage with local communities and Civil Society Organisations (CSOs) in pursuing the Mulanje Mountain bauxite and rare earth prospecting project to ensure that they are fully sensitized on the project.

Consulting Geoscientist Ignatius Kamwanje said since Mulanje Mountain is a forest reserve and an eco- tourism center, companies conducting exploration or mining activities at the site will continue facing a backlash from environmentalists, CSOs and members of the local community.

Kamwanje said: “There will still face an uphill task to thrive but reaching flexible beneficial agreements can be a way of arresting the wrangles.”

“The investors need to engage the communities in ongoing activities through employment, meetings as local participation, and; bring stories from elsewhere where mining has been successful under the same environment.”

Coordinator for Natural Resources Justice Network (NRJN) Kennedy Rashid in a separate interview advised investors to develop a viable stakeholder engagement strategy in order to manage both conflicts and expectations. Rashid also said there is a need to utilize the Free Prior and Informed Consent (FPIC) in Mulanje District about mining in the mountain as much as the nation needs to generate wealth.

“Besides the minerals, the ecosystems on the mountain are very important to other stakeholders socially and economically,” he said.

However, Coordinator for Chamber of Mines and Energy Grain Malunga explained in an interview that mining cannot endanger ecosystem or tourism activities in the mountain. Malunga said unlike unregulated small-scale mining which has resulted in destruction of the environment across the country, large scale mining to be conducted in Mulanje will involve the execution of modern and environmentally friendly technologies.

“Tourism can strive through geo-tourism investment. Mining of today is very sustainable. One should not confuse small scale mining with large scale mining,” he said.  

MD for Chiwandama Geo Consultants John Nkhoma said the country can realise more benefits from mining in Mulanje as compared to what is being earned from tourism activities.

“Mining, if properly done can actually bring about the much-required tourism boom and money can be realized from it. Look at the accessibility to the top of the Mountain, this requires huge investment which tourism will never achieve till end of the world,” he said.

Mulanje bauxite project has the potential to boost the country’s economy by increasing foreign exchange reserves and creating job opportunities for locals.

The project has also potential to improve the public infrastructure including upgrade of transportation networks, housing, health care and educational facilities.

A local firm Akatswiri Mineral Resources is pursuing the project, which hosts about 28-million tonnes of bauxite, and rare earth reserves at Chambe Basin.

ASX-listed Lotus Resources, which is preparing to resume uranium mining at Kayelekera in Karonga, says it has issued Malawi-based purchase orders exceeding K3,8-billion in the past three months, from December 2024 to end February 2025.

Lotus CE0 Theo Kyter explains that the development implies that the mining project is procuring goods and services from Malawi suppliers and service providers at increasing levels to ensure that locals adequately benefit from the mine.

Lotus offers businesses to Malawians across transportation, vehicles, freight, local contractors, food, IT equipment, safety gear, water, internet, cement and other areas.

“We will consider equal opportunities including to entities owned by Malawian women, provided such supplier and contractor entities offer competitive terms including prices, quantities, qualities and delivery schedules,” says Kyter. 

Lotus needs to resume operations profitably to ensure long term success and benefits for the people of Malawi

•Cost control is critical to survive   

 •The operation was forced to close in 2014 due to low revenue and high costs

•Our procurement plan prioritises Malawian businesses and allows for Malawian companies to tender   

 •It is important that Malawian companies work with Lotus to be competitive. Being uncompetitive will result in Lotus having to procure from other countries to avoid high costs

•Priority will be given to Malawian companies that are competitive with the market

   •We have clearly seen that some Malawian companies have been charging significantly higher prices and continue to increase their pricing since activity on the mine has increased – this is making those companies uncompetitive

•We will adhere to all our obligations with Malawian law and our agreement with government

•Considering local availability and pricing / quotes before making purchase decisions   

 •However, this will be with the emphasis needed to ensure that our cost base is competitive with others in the global uranium industry

Lotus is fully engaged with and has strong support from surrounding communities.

•A key focus for Lotus is strong community engagement and support and this is displayed in many ways including the recently signed Community Development Agreement, ongoing community support including support for local schools, health services and other roles

Lotus is contributing to local communities and across Malawi through:

•Growing local employment:   

 •currently over 350 local personnel are employed, which will continue to increase significantly local employees represent nearly 90% of the current site workforce

•Development of training and other programs to upskill the local workforce and continue to increase the percentage of local personnel employed, with a particular focus on increasing the percentage of local personnel employed in specialist and senior roles over time

We are working with Malawian suppliers and continue to encourage the development of local supply of goods and services through:

•Lotus controls is own contract award and procurement processes

•Considering local availability and pricing / quotes before making purchase decisions.

•Across transportation, vehicles, freight, local contractors, food, IT equipment, safety gear, water, internet, cement and other areas.

•Buying from Malawi suppliers and service providers at increasing levels, recognising that Lotus still needs to purchase goods from outside Malawi due to availability and cost considerations:   

 •In the past 3 months, from December 2024 to end February 2025, Lotus has issued Malawi based purchase orders exceeding MWK3.8 billion ­ We will consider equal opportunities including to entities owned by Malawian women, provided such supplier and contractor entities offer competitive terms including prices, quantities, qualities and delivery schedules.

Malawi’s mining industry is undergoing a transformation as new technologies reshape the exploration and extraction of the country’s mineral resources.

In a rapidly evolving landscape, advanced tools such as drones, automated machinery, artificial intelligence, and 3D mapping are laying the foundation for more efficient, safer and environmentally responsible operations.

In an interview with Mining and Trade Review, a lecturer in Earth Science at Malawi University of Science and Technology (MUST) Ellasy Gulule Chimimba explains that the selection of technology in mining depends largely on the specific tasks for example in mineral exploration drones have proven to be a game changer

. “They allow us to map and survey areas that are otherwise inaccessible or too dangerous to reach by traditional means. This not only speeds up the process but also provides higher precision in data collection,” she says.

Chimimba explains that drones are being increasingly used to perform detailed geological surveys, making them an indispensable tool in identifying mineral-rich areas.

She says that in the case of actual mining operations in Malawi where large-scale mines are still emerging, the technology applied will vary as different mining operations require different technological solutions.

Chimimba says “operations like uranium extraction at Kayelekera Mine in Karonga might rely more on automated trackless machines with GPS tracking as these systems are designed to work in environments where human intervention is minimal, ensuring both safety and operational efficiency.”

She explains that technologies such as artificial intelligence and 3D mapping are making inroads in mining by offering capabilities for real-time data analysis and predictive maintenance in so doing reducing downtime and enhancing overall productivity.

Acting Director of Mines in the Ministry of Mining Mphatso Chikoti says that the Ministry recognizes these advancements and is fully committed to integrating modern technologies, including drones and automated systems to improve efficiency and compliance in mining operations.

He confirms that the adoption of drones has already begun in various aspects of mining, including surveying and monitoring.

“Our use of drones extends beyond mapping as they are also instrumental in environmental monitoring and compliance enforcement, ensuring that mining activities adhere to both safety and environmental standards,” says Chikoti.

He also reveals that the Ministry’s proactive approach in the adaptation of new technologies has earned international recognition including an innovation award from the United Nations Development Programme (UNDP) last year.

Chikoti says the government’s strategic policies have been central to this technological push hailing frameworks highlighted in the Mines and Minerals Act 2023 and initiatives such as duty waivers on mining-related equipment. He stresses that the Malawi Government is determined to make advanced mining technologies more accessible not only to large-scale operators but also to small-scale and artisanal miners.

Chikoti says: “We understand that the initial investment for high-tech equipment can be expensive, which is why we are collaborating with development partners and financial institutions to create opportunities for miners of all scales to access and benefit from modern technologies.”

However, the path to a fully modernized mining sector is not without challenges. Both Chimimba and Chikoti acknowledge that this advancement comes with its own set of challenges.

The high cost of advanced equipment, the need for specialized training, and the reliance on imported technology are significant issues that the sector must overcome.

As Malawi navigates this technological revolution, the collaborative efforts of academia, industry and government signal a promising future for the nation’s mining sector. With ongoing investments in training and infrastructure, the integration of modern technology is expected not only to elevate operational standards but also position Malawi as a regional leader in mining innovation.

An umbrella body of civil society organisations (CSOs) working in Malawi’s extractive sector, the Natural Resources Justice Network (NRJN), says there is need for more local investors in foreign resource firms working in the country in order to promote inclusive and sustainable economic growth.

Coordinator for NRJN Kennedy Rashid told Mining and Trade Review in an interview that encouraging Malawians to own shares in mining companies will significantly increase local participation in large-scale mining in so doing scaling up benefits for Malawi.

Rashid pointed out that local shareholding in foreign companies aligns with principles of resource nationalisation, where by a country's citizens are directly involved in the ownership and management of natural resources. 

He said: “CSOs also believe that local shareholding would foster accountability and transparency within the mining sector, as Malawian shareholders would have vested interests in the governance and operations of these companies.”

“However, there are several structural and systemic barriers that must be addressed to make this a reality. Some of the issues include lack of adequate knowledge about the stock market and the potential benefits of investing in shares whereby limited financial literacy means they are unaware of how shareholding works or how it can benefit them in the long term.”

He said lack of disposable income among many Malawians has also been a challenge in investing in shares.

“Malawi's capital market is underdeveloped, and opportunities for citizens to buy shares in mining companies are not widely accessible. Investing in shares is seen as risky, especially in an industry like mining, which is prone to price fluctuations and operational risks,” Rashid said.

He, however, said despite the challenges, local ownership in mining investments can bring a lot of benefits including enhanced wealth distribution as local shareholding would ensure that more wealth from mining remains within the country creating opportunities for wealth distribution among ordinary citizens; capacity building and fostering national ownership; and strengthening the financial sector.

Rashid, therefore called for collaboration among CSOs, the private sector and Government, and mainstream mineral sector players on several fronts on financial education campaigns; mainstreaming policy reforms; and increasing access to capital to create an enabling environment for local shareholding.

Mining Expert Ignatius Kamwanje backed the recommendation from the CSOs saying it will spearhead sense of ownership as well as boosting the economy through dividends.

“On top of taxes. buying shares enhances a sense of ownership of the minerals by the locals. It is also a way of economic empowerment through dividends,” Kamwanje said.

However, Coordinator for Chamber of Mines and Energy Grain Malunga said in a separate interview that currently Malawi does not have mining companies registered on Malawi Stock Exchange hence it would be difficult to implement the proposal.

Seasoned Geologist and Mining Expert John Nkhoma, however, commented that though there is no problem in buying shares in the large scale mining companies, Malawians have to understand that it requires foreign exchange.

He, however, said it requires patience to start benefiting from investing in shares in mining companies taking into account the long time it takes for a mine to reach production stage hence wondered if many Malawians can manage to wait for such a long period before starting to reap from their investments.

“The main problem is that many Malawians want to see immediate returns,” said Nkhoma.

By Vincent Chege

With Malawians eager to see large scale mines coming on stream to start generating foreign exchange and help ease its acute shortage, the Chamber of Mines and Energy says the companies are taking their time to start production at the mines in order to minimise risks and ensure long-term sustainability.

Globally, large scale mining projects take an average of 18 years from discovery to production, according to S&P Global Market Intelligence 2023, but in Malawi this process is taking up to 27 years for some deposits.

Grain Malunga, Coordinator for the Malawi Chamber of Mines and Energy, says this extended timeline allows for more thorough geological assessments, reducing the chances of costly mistakes.

“The longer and thorough exploration of projects improves quality and accuracy of results and reduces project risks,” Malunga said.

He explained that by taking time to confirm the viability of mineral deposits, Malawi ensures that only well-planned and economically feasible projects move forward, preventing resource overestimation and premature abandonment of mines.

Despite these advantages, Malunga acknowledged that prolonged development phases pose challenges.

“Demand and commodity price is cyclic. New replacement products can evolve,” he said.

“This means that by the time a project reaches production, the global market for that particular mineral may have shifted, potentially affecting its profitability.”

To improve efficiency while maintaining sustainability, Malunga suggested stronger collaboration between mining companies and government agencies.

“To enhance mining exploration, Malawi mining companies should work with the Geological Survey Department in mineral resource mapping and evaluation,” he said.

He further emphasized that companies should focus on industrial minerals, which can contribute to economic growth through import substitution and value addition.

Malawi is endowed with different types of minerals including rare earths, uranium, coal, titanium, gemstones, graphite, marble, gold, phosphates, bauxite. galena, niobium and gypsum.

Minister of Mining Kenneth Zikhale Ng’oma has assured global mining investors of the country’s commitment and passion towards inclusive and sustainable extractives sector.

Speaking during a cocktail party on the sidelines of this year’s Investing in Africa Mining Indaba, Ng’oma outlined to the investors the support that the government is rendering towards mining projects which includes: commitment to a sustainable mining industry and transparency; efficient regulatory processes; ensuring security and stability of tenements; social license to operate; availability of geo-scientific data and; energy requirements for the sector.

He said: “The Government of Malawi, through the Ministry of Mining, is dedicated to building a robust and sustainable mining industry that significantly contributes to the nation's economic development.”

“Government of Malawi extends a warm invitation to all the key players driving the global mining industry including executives, consultants, investors, financiers, bankers, brokers, analysts, and fund managers. You should come and explore the abundant investment opportunities in Malawi.”

“For example, you may wish to consider to partner with companies that have signed Mining Developments Agreements seeking project funding.”

“Investors are also welcome to invest in Malawi because we have abundant mineral resources which remain untapped.”

Meanwhile, The World Bank says that Malawi must upgrade and modernize its legal, regulatory and institutional framework to effectively manage and monitor large-scale mining operations in light of growing investor interest in the sector.

In its Malawi Economic Monitor 20th edition report published in January 2025, the Bretton wood institution explains under the headline “Unlocking the potential of Malawi’s mining sector amid the global energy transition; grow, protect and benefit” that with demand for Energy Transition Minerals continuing to rise, Malawi’s mining sector has attracted increased interest both from researchers and international investors.

The report reads that since 2010, regional geological programs, supported by the government and development partners, have studied Malawi’s key rock formations, including Precambrian basement rocks, remnants of the Paleozoic Karoo system, Mesozoic igneous intrusions, and Cenozoic fluvial complexes.

These studies have revealed several economically viable mineral deposits, along with new exploration targets and areas with high potential for mining development.

Reads the report: “As a result, Malawi is increasingly recognized as a mineral-rich country with a unique mix of resources. Notable minerals include graphite, titanium, uranium, niobium, tantalum, and heavy sands.”

“The country also has significant industrial minerals like rock aggregates and limestone, along with undeveloped deposits of gold, and copper. Malawi holds an estimated 2 percent of the world’s rare earth elements, and a major rutile deposit at Kasiya is currently under advanced exploration. Moreover, its average uranium concentration per square kilometer is three times the global average.”

The report, however, highlights that while the country has amended its mining laws multiple times, existing institutions remain underfunded and lack the capacity to oversee a growing extractive sector.

"The Mines and Minerals Act has been amended six times since 1981 to strengthen oversight of the extractive industry. Laws like the 2017 Environmental Management Act and 2022 Land Act also aim to protect people and the environment, but they were enacted before large-scale mining began in Malawi, now with major projects in the pipeline, gaps in governance and enforcement are becoming more apparent,” reads the report.

The Bank points out that despite its vast ETM resources, Malawi’s industrial mining sector has been slow to develop due to governance gaps.

The report reads: “The global average lead time from mineral discovery to production is 18 years yet in Malawi, this process currently takes 27 years with most significant delays occurring during the Mining Development Agreement (MDA) negotiations”.

“While the government and project sponsors must agree on investment terms, prolonged negotiations risk delaying exports and missing the market cycle".

The World Bank projects that mining exports could reach $30 billion between 2026 and 2040, with annual exports hitting $3 billion by 2034 and in a best-case scenario, revenues could increase to $43 billion.

It forecast that the mining sector will grow gradually from 2026 to 2033 and then rapidly starting in 2034 as all seven big projects namely Kayelekera Uranium, Kasiya Rutile, Kangankunde Rare Earth Elements, Kanyika Niobium, Songwe Hills Rare Earth Elements, Makanjira Heavy Sands and Malingunde Graphite come online and move toward their full capacity.

Mining production is expected to boost the country’s economy significantly, but the benefits will take time to materialize. “During the production phase, mining exports could increase the available fiscal space, generate significant foreign exchange, and ease debt challenges, but this process will take 5–10 years,” the report states

. Despite this potential, the World Bank warns that production timelines for Malawi’s seven major mining projects remain uncertain as these projections assume no further delays beyond active exploration, engineering, and construction phases.

 “Other risks include price volatility which is fluctuations in global metal prices that can create unpredictable revenue streams, technical complexity and infrastructure-related challenges,” the report reads.

Coordinator for the Chamber of Mines and Energy Dr. Grain Malunga comments in an interview that in order to develop the minerals sector, there is a need there is need to promote medium to large scale mining with attractive incentive packages and timely processing of permits.

“Granting of approvals of permits should not exceed three days upon receipt of an application,” he says.

The World Bank report reads that several factors could prevent Malawi from fully leveraging the potential of the mining sector to drive long-term growth and poverty reduction as across the region, many countries have had limited success in converting subsoil wealth into sustainable prosperity. It says in Malawi, limited institutional capacity, weak sectoral governance, and inadequate infrastructure pose especially serious risks.

“The authorities have limited experience managing the environmental and social impacts of mining, and the legal and regulatory framework was not designed to accommodate a large mining sector. In addition, managing resource revenues presents serious fiscal and macroeconomic challenges that are separate from the governance of the mining sector itself,” it reads.

Meanwhile, the Malawi Government is striving to develop the policy and institutional arrangements necessary for a successful and responsible mining sector.

In partnership with the World Bank, the government has launched the Mining Sector Diagnostic Study and is formulating an ETM Roadmap. The ETM Roadmap is aligned with key regional and continental strategies, including the African Mining Vision, the African Union’s Continental Commodities Strategy, and the Malawi 2063 national vision to ensure consistency with the country’s long-term development goals and the broader regional integration agenda.

The report says that once the ETM Roadmap is completed, the government will be better equipped to define and articulate a clear vision and "whole-of-government approach" for leveraging the mining sector to drive sustainable development and deliver positive socioeconomic benefits.

“Updating the 2013 Mining Policy will provide a comprehensive, forward-looking framework for the mining sector that supports long-term economic growth and community welfare,” says the World Bank.

ASX- listed Lotus Resources says it has signed term sheets with two leading Southern African banks for equipment finance and working capital facilities to support the restart and ramp up of its Kayelekera uranium project in Karonga through positive cashflow.

Lotus MD Greg Bittar says in a statement that Lotus has signed two equipment finance term sheets for up to US$18.5m in aggregate with Standard Bank Plc and First Capital Bank Limited to be used for the purchase or refinance of equipment including cranes, vehicles, machinery and other equipment and another term sheet for a US$20-million working capital facility with Standard Bank plc to finance working capital requirements until expected positive cashflow from Kayelekera production.

“The total current funding including these term sheets is US$135.5-million comprising cash on hand as of December 31, 2024 of US$82-million, US$38.5-million in equipment and working capital finance term sheets and US$15 million unsecured loan facility from Curzon Uranium,” says Bittar.

Bittar also says that Lotus has two conditional uranium offtake arrangements in place for Kayelekera totaling to 1.5-million lbs of uranium for 2026 – 2029, at an escalated fixed price with North American power utility PSEG Nuclear LLC and Curzon Uranium.

He says Lotus continues to advance discussions relating to additional contracts with North American power utilities as the Company is on track to restart uranium production at Kayelekera in the third quarter of 2025, with all key items of equipment ordered, construction crews and mobile equipment mobilised and works commenced, and over 200 workers on site.

Bittar says: “With the restart capital fully funded to first production by our recently completed A$130-million, two-tranche equity placement, these finance facilities provide Lotus with working capital liquidity and funding flexibility as we rapidly progress our accelerated restart program at the Kayelekera uranium mine.”

“The financing banks provided these facilities on very competitive pricing and terms because of the quality of the Kayelekera Project and their confidence in the progress of the restart program, which is on track for first production in third quarter of 2025.”

Meawhile, Lotus has completed the Kayelekera Front End Engineering (FEED) program and the Company in now well positioned to conduct a low capital intensity, accelerated restart of Kayelekera.

Bitter says in the Company’s quarterly activities report for the quarter ended December 31, 2024 that time to first uranium production was reduced to 10 months by phasing in the completion of non-essential site infrastructure, principally grid power and acid plant rebuild beyond first production, and initial restart capital expenditure to first uranium production reduced to US$50M providing an initial restart capital intensity of US$21.0/lb.

He also says Lotus has now ordered all of the key equipment needed, mobilised equipment and construction crews to site and completed the early works program.

Bittar says the Company has also signed a grid connection Memorandum of Understanding (MoU) with the Electricity Supply Corporation of Malawi (ESCOM) and completed the tender process for the appointment of an Engineering, Procurement and Construction (EPC) contractors for the transmission, substation and associated works required for the connection to the power grid.

 “The Contracts are expected to be finalised during the current quarter of the year,” says Bittar.

Lotus signed a Mine Development Agreement (MDA) to resume uranium mining at Kayelekera last year which was in early January this year followed by the signing of a Community Development Agreement (CDA) with privileged communities surrounding the mine.

The CDA is the legislated structure by which the local communities will benefit from the mining operation. A minimum of 0.45% of the mine's revenue is allocated to the CDA fund, which is then used for specific projects that have been selected by the communities through the CDA steering committee.

“The CDA signing ceremony was a well-attended and publicised event that was recognised both locally and in the capital Lilongwe, including by Malawi’s Presidential Delivery Unit,” reads the report.

Key early works completed and long lead orders placed during the ended quarter include: • Camp infrastructure upgrades including water treatment, sewage system and rooms;

• Orders placed for calciner, scrubber and screw feeder for drying and packaging plant;

• Tools and mobile equipment and plant, including man-lifts and telehandlers for construction crew;

• Purchased 70-tonne and 200-tonne cranes for construction and operations and mobilised to site;

• Engineering, Procurement and Construction Management contract issued for acid plant relocation and refurbishment; and • Design package awarded for drying and packaging plant with design now largely complete and steelwork in fabrication.