Mining & Trade News

The Lilongwe City Council has advised burnt brick moulders in the city to migrate to moulding cement blocks in order to conserve the city’s environment.

Lilongwe city council’s director of Parks, Recreation and Environment Allan Kwanjana told Mining & Trade Review in an interview that the government with the spirit of protecting the environment from the destruction caused by the process of molding and burning bricks is taking an important direction that those involved in this destructive practice should be taxed heavily to eventually drive them out of the business.

Kwanjana explained that there is a lot of sand in the shores of Lake Malawi and along some big rivers in Malawi which if used technologically can be developed to come up with cement blocks which can be used for construction instead of burnt bricks.

He also said that the government is doing everything necessary to encourage the cement brick business and also encouraging investors to invest in new technologies that will come up with building materials which are environmental friendly.

Kwanjana said the Council is contemplating “developing guiding policies with legislative tools to enforce environmental friendly practices to gradually stop this way of creating building materials.”

He also said that those who are involved in the burnt bricks business should be required to restore the land they have destroyed by burying the pits they create and plant vegetation and tree.

Kwanjana also pointed that the move to stop the practice of molding and burning bricks will affect both the manufactures of the burnt bricks and the users economically.

But brick moulders in the City have put their foot down insisting that they will continue their trade despite government’s pressure to stop the business.

Charles Jumbe, a brick moulder who does business in Chiudzira Township in the City, told Mining & Trade Review that without the government empowering them with seed capital to upgrade into the cement blocks business, they cannot leave the business of moulding and burning bricks.

Jumbe said for one to venture into cement block production, there is need for huge capital injection to purchase raw materials such as cement and quarry dust.

“The business of burnt bricks puts food on my table and pays my utility bills and for me to venture into cement block business I need to generate at least some millions of Kwacha which I cannot afford,” said Jumbe.

He called on government to engage financial institutions to ease conditions for the brick moulders to acquire loans so that they have the capacity to start the cement block production business.

Another brick moulder based in Nathenje, Bright Mkuche said he cannot stop the business because it is his only way of survival.

“Cement blocks are for those who have got cash and most of us, Malawians, in brick business are poor hence cannot afford to venture into this very expensive venture,” Mkuche said.

Small-scale miners in the newly discovered gold mining hotspots in Southern Malawi are encountering a myriad of challenges including lack of training on sustainable mining practices and utilisation of primitive mining equipment, which are negatively impacting on their production and causing serious environment degradation in the mining sites.

Mining & Trade Review visited Milepa in Chiradzulu, and other near-by hotspots of Zomba and Mulanje along the Namadzi River including in Moleni and Chikomwe Villages in Traditional Authority (T/A) Mbiza area in Zomba, and Mgunda Village in T/A Mpama in Chiradzulu – along the Mwaye river, which is a tributary of the Namadzi River.

 “Just look around this whole mining area, people are using picks and shovels and relying solely on guess work to decide where to excavate. Had it been that they had gold detectors they would easily spot the right places to extract gold and so too if they had mechanized digging equipment, they would save time and reap big,” said Yamikani Maduka, chair of the grouping of small scale miners in the area in an interview at the Moleni site.

He, just like others interviewed, called for support from the Malawi Government to overcome their problems and scale up production from the area, which is producing gold of good quality.

Artisanal and Small Scale Mining (ASM) activities in these areas started in November last year and have attracted people from different areas including foreigners who are renting portions of plots to conduct mining activities from traditional land owners.

“We rent a portion of land measuring 1 by 4 metres at K140,000, and because we do not have gold detectors, it is a gamble as we may not get the intended return. Mostly I have 25 to 30 people doing the digging for me, and I pay them K2,500 per day. I also pay some people engaged in earth moving  K2,000 per each, and provide food for them daily, it is quite an expensive venture,” said Honest Chitimbe, a Mozambican our reporter interviewed at the site.

He said a network of friends alerted him of the gold potential in the Milepa area, and he risked the odds to come and embark on the venture.

“We sell the few grams of gold we find to buyers who come here, who in turn sell to Export Development Fund, and other buyers they know,” said Chitimbe.

Another ASM Damson Chimphamba said they sell their gold to buyers at K100,000 per gram; and can acquire between 8 to 12 grams from the portions they buy at K140,000.

“If we have proper expert advice and machinery, especially detecting and digging ones, we would obviously make more profits, hence improve our livelihoods. I have two portions measuring 2 by 2 metres, I have since made a loss on one, and a profit on another,” he said, urging government to come in to equip the locals with necessary mining technologies.

Black Gondwe, a miner and buyer of gold, said the gold deposits in the area would have improved the welfare of the locals if proper machinery was available.

Gondwe said: “For instance, in our case, we employ diggers, buy gold from local miners, and sell to EDF. We buy the gold at K100,000 per gram, but considering that there is no proper equipment, the job of finding right volumes of gold, is cumbersome.”

“Of course I am one of the few people who use machinery [compressor and water pump] to process the gold grains. However, using primitive equipment for excavation is hard, and it is why we need machinery,” said Gondwe.

The Malawi Government is, currently, formalising small scale miners in the country into cooperatives so that the ASMs should be easily identified, licensed and provided with technical and business training, and financial opportunities whenever it is feasible.

While most new university graduates in mining related courses are hopping from one office to another in search of employment, one John Vasco Chidule, aged 27, thought otherwise. Wearing the accolade of a professional Geologist with a degree in Earth Sciences obtained in the year 2022 from the Malawi University of Science and Technology (MUST), he decided to brave the world and become an entrepreneur.

His passion for rocks made him amplify his determination to go more than just acquiring academic papers from MUST, where he studied from 2017 to 2021.

The resolute young man decided to form his own company that he christened Zozodo Gemstone Consultancy and Mining Limited (ZGC), headquartered in Mzimba district.

“I actually registered this company in the year 2019, even before I graduated from MUST. This was because of my passion for geology and mining, and the quest to become an investor in this field; I felt the academic acumen I was getting, was more beef to steer me into becoming an investor,” he said in an interview.

The young and currently unmarried Chidule ignited his pursuit for practical geology and mining when during his early college days – whilst in his second year – he started to enjoy more field than class work.

“As part of this, culminated by my enjoyment of exploration of the surroundings per the nature of the degree program, I managed to have in my hostel room, a great mineral and rocks collection, which I used to study every day,” said Vasco, adding that this became a vessel of achieving his dream of pursuing the geological field realities, other than the trend of many, who become addicted to theory which mostly leads to the mentality of being an “employed material”.

As CEO of his own ZGC, he feels great that his passion has led to the fulfilment of his dream, while agitating for more.

He articulated: “During holidays, I used to have my own surveys around the mining places in Mzimba. I learnt more on how these minerals were identified locally, that is, by the use of trees as path finders and other features, which was never taught in class.”

“I also leant the tricks of how local miners traded the minerals; that is at what prices these minerals were being sold, after being mined by the smallholder miners. The prices were so motivating, and more so ignited my desire of becoming a self-employed investor.”

He said he, therefore, mapped up his future strategy by starting to look at his university degree program course with a business angle, wearing the commercial grasses on each aspect of minerals.

Whilst in the process, his new spectacle of geology and mining, made him also work hard in class, which saw him getting good grades for his qualification. This tied well with his earlier secondary school career ambitions of becoming a geologist.

“In secondary school I fell in love with Geography, after being tipped that such a subject was my passport towards becoming a geologist. No wonder my first choice for a university course was Earth Sciences [Geology], and was too excited when I was selected to MUST, just to do the same,” he re-counted.

Being motivated by the practical exposure and investment quest, Vasco was propelled to study even harder, and more on the practical aspect of the course.

This was evidenced by his brilliant and excellent prowess in class during his first and second year, up to the third one, when he always scored credit passes, putting him on the summit of the geology class.

“Some were surprised with my good understanding of the rocks, but they did not know what I was doing back home during holidays,” he articulated.

But, his academic journey and mission for becoming an investor was not without challenges.

“Despite the said academic strong points, weak points came my way just like fellow students. There were no labs to support the Geology course for the analysis of minerals and rocks at the institution during our time. This limited my knowledge on the minerals and rocks; which, unfortunately, was my priority,” he said.

Secondly, he cited the lack of well-trained practical lecturers – with a deeper understanding of field work, than theory. This, he said, resulted in the baking of many geological students to be more of ‘class or office experts’ than fully fledged geologists.

“Lastly, personal financial crisis, led to my prioritising minerals trading business, rather than being in class learning. This obviously affected my performance; this is because every weekend I was out of the school campus to the field, to buy minerals and sell in Lilongwe, so as to support myself and my siblings back home,” he explained.

But the challenges solidified the ambition of investing in the field.

Deep into minerals trading, he realized there were lots of gaps and challenges that small-scale miners were experiencing.

Vasco said: “I saw the extreme poverty among small scale miners. That solidified my ambitions of becoming an investor, hence the formation of the company in 2019.”

“The idea emanated from the vision of having a company that should focus on mining of precious minerals only. After putting the idea on paper, though, challenges encountered by all small-scale miners came in, but determination made me to struggle on, to make it a company.”

“This company is also aimed at assisting small scale miners with profitable markets, teach miners on good and productive methods of mining; while supporting them with modern knowledge that will transform their life standards.”

He said his business entity intends to be an example of proving that small-scale mining is beneficial, not only to those involved, but also the nation at large, by helping enhance its economy.

Currently the company has employed 25 people, of which 20 are at the mine site –  who are unskilled labour – and  five are doing office work as skilled labour force, who are graduates of MUST and the Malawi University of Business and Applied Science (MUBAS).

“So, in simple terms, we are an entity that blends skilled experts and unskilled labour, but all committed to make a difference,” said Vasco, adding that his motive is also to prove that fresh graduates can make a difference when there is enthusiasm, and a conducive climate towards such investments.

He bemoaned the tendency of most mining graduates of moving out of Malawi for greener pastures saying there are opportunities within the country.

Vasco, however, admitted that challenges exist within the industry for mining graduates, mostly due to the zero sector development and prioritization by the Government of Malawi.

“Mining is one of the most beneficial economic sectors in various countries, but the case is different in Malawi. This has led to less development and improper support of the sector, hence there are no job opportunities for mining graduates. Also, there are no huge loan opportunities for fresh graduates, with zero collateral,” said Vasco.

He however advised the said graduates to soldier on, whilst ensuring their vision to promote this industry is realized. This, he said, would help grow the economy of Malawi.

Vasco’s company has got a district exploration licence, with the mandate to explore for gemstones in Mzimba, and also a mining licence.

“Among the gemstone minerals the company has explored, only bulk minerals have been selected to be mined, due to their profitability and affordability, to mine. Some of these bulk minerals found are: rose quartz, clear quartz, mica, beryllium and yellow stone.

With no mining history, Malawi had a serious shortage of professionals in this blossoming sector. However, this is now history thanks to the intervention of the Malawi University of Science and Technology [MUST] which is complimenting other universities such as Malawi University of Business and Applied Sciences and University of Malawi in moulding professionals for the sector.

In an exclusive interview with Mining & Trade Review, Lecturer in Earth Sciences at MUST Ellasy Gulule Chimimba said the existing cordial relation between their training institution and the industry offers hope that graduates from the institution will continue to be relevant to the industry and the nation.

She explained that the relationship between the institution and the mining industry is one of collaboration and mutual benefit.

Said Chimimba: “As MUST, we recognise the importance of bridging academia and practice to address the changing demands of the mining sector. We constantly interact with the industry and government institutions in the industry to give guest lectures at MUST, collaborate in research projects, and place students in work integrated learning to gain industry experience.”

“There are many stakeholders who play a very crucial role in accommodating our students as part of their industrial attachments. This has greatly helped our students to gain professional experience in various fields,” said Chimimba, hailing the existing cooperation, which she said has ably helped yield a positive impact of MUST to the industry.

The stakeholders that MUST collaborate with include the Geological Survey and Mines Departments, Malawi Energy Regulatory Authority, National Oil Company of Malawi, Mota Engil, and World Vision. These stakeholders have also played a key role in assisting in the development of the various curricula at MUST.

MUST’s programs on geology and mining include Bachelor of Science Degree in Earth Sciences that started in 2015, BSc in Geographic Information and Earth Observation Science that started in 2016 and BSc in Petroleum Geo-science (oil and gas).  

“So we do much in exploration geology, hydro-geology (water), remote sensing (with drone academy as part of it), and Petroleum,” she said.

Chimimba added that the degree in Earth Sciences (Geology) aims to produce geologists who understand geological processes; formation, exploration, and exploitation of mineral resources; environmental and social issues in governing mineral resources; business management and entrepreneurship; and who can apply gained skills and knowledge in solving problems related to geo-sciences and mining.

She, however, cited resource constraints as one of the major challenges especially in undertaking research in critical areas including development of curriculum for postgraduate programs.

“But we are slowly enhancing our capacity by prioritising our resources. In addition, MUST has a new strategic plan that is focusing on diversifying the university’s income sources through research, innovations and commercialization. For instance, we are producing some products such as maize flour, that are on the market – all aimed at complementing the available resources,” explained Chimimba, adding that MUST graduates can ably be  utilized by the industry through a combination of enhanced skills development, industry exposure, and collaborative partnerships.  

“We get continuous feedback and industry collaborations to ensure that our graduates are being utilized to their full potential, and that any gaps in their preparation for the workforce are promptly addressed,” she said, adding that through the Jobs4Youth Project that was funded by African Development Bank, MUST trained youths in small scale mining and gemstone value addition.

“In addition, the petroleum geosciences section within the earth sciences hired a consultant who performed the due diligence on the petroleum exploration and drilling data for an investment project for Press Trust. The exercise was a success, and an investment decision was adopted,” she said.

Government introduced mining related courses in the universities several years ago under the World Bank funded Mining Governance and Growth Support Project; but despite the courses producing the graduates, creation of jobs for the graduates has been a challenge.

Coordinator for Chamber of Mines and Energy Grain Malunga told Mining & Trade Review that “Government is delaying in concluding Mining Development Agreements (MDAs) with resource firms thereby delaying job creation.”

He, therefore, said despite that the courses in the selected universities and colleges are relevant to the industry, there is limited internship opportunities due to lack of relevant operating mines as a result of the delays in signing the MDAs.

Economically engaging local content in employment saves money for the mining company. It also gives the government an advantage in tax revenues locally. In procurement of goods and services, there is further indirect benefits of local content, through benefits accrued to the non-resource sector firms providing goods and services.

Communities can receive compensation and substantial flows of revenue when a large mine is established, which can act as an important catalyst for change and growth. These monetary flows can transform the economic and social basis of communities.

In another development, the communities are also empowered to have a sense of belonging as a social change. There is also sprouting of infrastructure in terms of buildings, mining towns begin to sprout because the local population migrate to have opportunities as a result they need housing, food and essential services.

Another important source of economic benefits to communities, particularly where mining is the main activity, is the input services provided to mining operations. Companies are increasingly required to assist local business development, to outsource services, and to give preference to local businesses. On the other hand, since the company may also depend on the community for employees and services, a well-organized community can potentially make numerous demands on the company

A number of companies can adopt preferential and deliberate procurement policies towards local suppliers and distributors. Many of these can be enforced through provisions in national policies and legislation concerning foreign direct investment through, for example, joint ventures, partnerships, and outsourcing as a way of localizing multiplier effects. There is also improved supplier capacity and eligibility that increases goods and service availability.

 In conclusion, supporting local businesses provides an important means of benefiting communities and building human and financial resources. Preferential procurement policies towards local suppliers and distributors should be incorporated into mining agreements and company policy. Local procurement should be accompanied by skills development, training.

Artisanal and Small-scale Miners (ASMs) are calling on the Malawi Government to establish a revolving fund to provide loans to finance operations of ASMs in the country in order to increase the contribution of the subsector to socio-economic development.

MD for Maleta Gems and Jewels Percy Maleta told Mining and Trade Review that a revolving fund is the only way to alleviate the financial challenges faced by small scale miners in Malawi. 

Maleta said that a revolving fund will enable the small scale miners to increase production, create more jobs and bring more forex into the country through exportation of minerals including gold and gemstones.

He said: “Let us appreciate the fact that gold mining in Malawi is done 100 percent by small scale miners and so far over K5-billion has been spent to buy gold by the Export Development Fund (EDF), and this has been achieved without any financial support. Imagine if these small scale miners were empowered with capital boosts. The contribution would be much more. The same applies to gemstones.”

Maleta said that it is painful to the ASMs to see that the mining sector is not being financially supported by government yet other economic sectors are heavily supported technically and financially citing agriculture which is enjoying substantial support through projects like the Agricultural Commercialization (AGCOM) and the National Economic Empowerment Fund (NEEF).

“It pains to read, hear and see that our counterparts in small-scale agriculture are heavily supported technically and financially, talk of extension workers/officers, AGCOM with its billions of kwachas to support the cooperatives and recently NEEF, nothing is being done to small scale miners other than hearing from the government that mining is the main thing and touted to replace agriculture in the coming years. How do we achieve this without investing in the mining sector?” Maleta questioned.

Commenting on the issue, Managing Partner for Perekezi ASM consultants Chikomeni Manda said that the revolving fund is indeed needed and its introduction in the country is long overdue because it will help small scale miners find capital to boosts their operations.

“It is very difficult for small scale miners to sustain their operations especially now with the high inflation rate,” Manda said.

Countries like Tanzania and Zambia have a revolving fund for small scale miners.

ASMs in Malawi are currently struggling to acquire financing as banks consider the business risky.

The Catholic Commission for Justice and Peace (CCJP) has called upon the Malawi Government and development partners to consider empowering Artisanal and Small-scale Miners (ASMs) in gemstone subsector in the country with knowledge and skills.

Programs Coordinator for Catholic Commission for Justice and Peace (CCJP) Tuntufye Simwimba told Mining & Trade Review that the call follows the knowledge gap that is there within the subsector especially to youth and women who have the interest of operating and those already in the subsector.    

Simwimba said: “Definitely, there is a gap. However, identification of gemstones especially the seven key gemstones; diamond, pearl, ruby, sapphire, emerald, oriental cats eye and alexandrite is a specialized field that can be learnt by anyone with sufficient interest.

“While focus should be on formal institutions, there should be a deliberate endeavor to enhance information and skills to supplement the demand of the sector.”

2ASMs should be empowered, regulated and given the right capacity. Youth and women led initiatives should also be empowered to undertake efforts in the field with micro-factories and knowledge.”

Simwimba further stressed the need to consider the gemstone subsector in response to the nation’s policy shift of Agriculture, Tourism and Mining (ATM).

He also reiterated the need for a stringent law to enhance that foreign companies do not take advantage of Malawi’s legal and policy inadequacies.

Simwimba said: “When the government identifies extractives as a key developmental area, policy, practice, strategy and law have to equally respond to that.”

“Commendable is that the Mines and Minerals Act has been amended, but there is more to be done.”

“There is a need to enhance capacity building and setting up of micro factories to enhance polishing and adding value of gemstones. The policy and practice direction in this regard seems inadequate”

“We should also understand that when policy identifies key areas of national development and extractives is one of them and this should be reflected in the national budget,” said Simwimba.

However, Simwimba bemoaned underfunding of the mining sector in general adding that this hinders national aspirations and the desire of developing the sector through value addition strategy.

In his remarks, one of the local ASMs in gemstones sector, Chikomeni Manda concurred with Simwimba on the knowledge gap citing that the country has few certified gemologists.

Manda said even though the country has few certified gemologists, there are some local miners and dealers with ground experience with knowledge and skills than graduate gemologists following years spent in the field.

He said: “Many people have to be trained for them to have ground experience because you can be a gemologist only conversant with theory without practical experience.”

“We have seen people calling themselves gemologist and some from outside the country but being sold low quality and plastics in the name of gemstones because they have no ground experience.”

“So, I also urge people with little experience to show interest to be trained at least in basic gemology.”

Manda further reached out to experienced gemologists to share the knowledge and skills to those showing interest and upcoming miners.

He said: “It is also appropriate that following the establishment of the gemstone buying initiative by the Malawi Government, institutions like universities, Export Development Fund (EDF), Center for Environmental Policy and Advocacy (CEPA) and others should consider offering short course trainings to miners and dealers.”

“If you have the capacity to conduct free trainings like we do, sometimes it is better to do so to those that cannot afford to pay.”    

The Ministry of Mining continues to formalize the gemstones subsector through formation of cooperatives and issuing of mining and gemstone buying licenses but it is yet to train the ASMs in sustainable mining and provide them with modern mining equipment.

The Ministry continues to face underfunding challenges making it unable to fulfill some of its obligations in the ASMs sector. 

Local firm Akatswiri Mineral Resources, which is prospecting for rare earth elements (REEs) at Chambe Basin in Mulanje Mountain, has urged Malawians to do away with any fears of environmental damage in Mulanje Mountain due to the project.

Akatswiri CEO Hilton Banda tells Mining & Trade Review in an interview that his company is pursuing a Sustainable Mining and Tourism approach, aiming at adopting open-pit mining with responsible rehabilitation practices to conserve the environment while extracting the REEs.

“The mining project will prioritize the protection of the environment and an aerial way will be used to transport the minerals from the plateau. This will reduce ground vibrations and also serve as a potential mine tourism attraction,” says Banda.

He also explains that the company is following all legal processes including the requirement to conduct an environmental and social impact assessment before a decision to conduct mining is made.

Currently, Akatswiri is only conducting exploration work and has now completed Phase 1 drilling programme whose samples have been sent to Australia for metallurgical analysis.

Banda says his company is working closely with the local community to preserve the environment and conduct Corporate Social Responsibility (CSR) projects in the area.

“Akatswiri has been engaging members of the local community in the area including at District Council level to provide them an opportunity to express their views regarding the project, discuss the environmental and social impacts of the project, and derive mitigation measures of the adverse negative impacts of the project,” he says.

The Company organised a tree planting exercise in liaison with members of the community as part of its environmental conservation programme for the area.

Banda pledged that when the project reaches mining stage, the surrounding community should expect more development projects as part of CSR, employment and business opportunities.

“The government of Malawi is actively utilizing the potential of the agriculture, tourism, and mining sectors to boost the country’s economy. With abundant reserves of minerals, including bauxite and REEs, Mulanje Mountain presents a valuable opportunity for mining ventures,” he says.

The prospecting project on Mulanje Mountain has sparked protests from environmental activists, who express concern over the potential damage to the ecosystem and the cultural significance of the Mountain.

Mathews Malata, an environmental activist, warns that the government should proceed with caution when considering mining in Mulanje Mountain stressing that the mountain holds great importance to Malawian citizens, who view it as a symbol of pride.

Malata says mining activities will endanger ecosystems and the mountain’s heritage.

 “Malawi should tread carefully when choosing between mining and tourism because Mulanje mountain is in the top ten tourism destinations in the country, additionally, mining in the mountain is contrary to the international laws as the mountain is one of United Nations Educational Scientific and Cultural Organisation (UNESCO) heritage sites,” says Malata.

Malata suggests exploring other alternative areas that are not protected and can be mined for the same minerals.

Emmanuel Elija, Chairman of the Mulanje Mountain Care Group, says there is need for more community involvement by government and the tenement holder so that the community understands how the mountain will be spared from the environmental impacts of mining,

He says the local residents are keen to know the potential benefits and drawbacks from the project through civic education.

“The company that is conducting the exploration of minerals and the Government needs to conduct adequate civic education to inform the people about the project details. This will help the community not to perceive the project as a threat to their lives and well-being,” says Elija.

Chambe is a unique rare earths deposit as it is an ionic clay deposit. These deposits generally have several advantages over hard rock deposits, including lower operating and capital costs and shorter timelines for development.”

The deposit is one of the few large ionic clay-hosted rare earth elements (REE) deposits outside of China, where currently a significant portion of global REE production is sourced.

ASX-listed Lotus Resources, which operates the Kayelekera Uranium Mine in Karonga, says it will accelerate Kayelekera restart activities targeting resumption of production in the fourth quarter of 2025 to benefit from strong current and forecast uranium market fundamentals.

Lotus MD Keith Bowes says this in a statement as the Company announces that it is undertaking a placement to strategic investors to raise US$30-million through the issue of 100 million new shares.

“We are pleased to secure US$30m through this Placement, allowing us to accelerate our activities around the restart at Kayelekera. The Placement has attracted significant interest from high calibre strategic investors who share our bullish view on uranium market fundamentals,” states Bowes.

He says the company aims to finalise financing and offtake for the project including appointing a debt advisor to assist in the financing process and negotiating offtake agreements with suitable parties that can strengthen its position.

Lotus also aims to finalize negotiations for a power supply and implementation agreement with Malawi’s electricity utility, Electricity Supply Corporation of Malawi (Escom).

“The agreement is key to achieving reduced operating costs announced in the Restart Definitive Feasibility Study in August 2022,”states Bowes.

Meanwhile, Lotus is also initiating a Front-End Engineering Design (FEED) program, which will provide reliable quotes from suppliers and further refine cost estimates, timeline and operation cost.  

“These will confirm the upfront capital cost estimate for the plant refurbishment and new equipment installations such that a control budget can be prepared for the restart and validate the 15-month timeline initially determined for the refurbishment program,” says Bowes.

Lotus has also announced its intention to design an infill drill program, targeting the most economically viable parts of the resource. This program aims to upgrade the resource and convert it where necessary into Measured and Indicated (M&I) status. The results obtained from the drill program will play a vital role in preparing a new Mineral Resources Estimate, reflecting increased M&I resources.

Uranium prices have continued to rise as Kazakhstan’s state-owned Kazatomprom, the world’s largest uranium producer, stated that it would be unable to meet its production target for the next two years amid a shortage in inputs and construction issues.

This is added to Canadian Cameco’s outlook downgrade in September due to issues in key mines and uncertainty over French Orano’s output due to Niger’s military coup.

Additionally, Western utilities continues to voluntarily shun Russian uranium imports due to its invasion of Ukraine, while the US has moved closer to banning its imports.

In the meantime, ambitious de-carbonization goals has driven the US and 20 other countries to announce that their nuclear power will be tripled by 2050.

The large bets on nuclear energy are led by China, which is building 22 out of 58 global reactors, while Japan restarted projects to increase nuclear power output.