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Lotus Resources granted 15-year licence extension on uranium project

“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."

Lotus Resources Ltd - Lotus Resources granted 15-year licence extension on uranium project

Lotus Resources Ltd (ASX:LOT) has renewed its mining and exploration licences for its 85%-owned Kayelekera Uranium Project in Malawi.

The Mining Licence, ML0152, has been renewed for a further 15 years.

Sign-off was given by the Honourable Rashid Abdul Gaffar, Minister of Mines, on September 1, 2021, in accordance with the Mines and Minerals Act.

The news comes just days after, LOT started a definitive feasibility study (DFS) to assess the possibility of restarting production at Kayelekera.

High potential for re-start

Kayelekera hosts a current resource of 37.5 million pounds of uranium oxide. It has historically produced 11 million pounds of uranium between 2009 and 2014.

Also in its favour is the 1.4 million tonnes per annum processing facility: LOT has spent around US$200 million on infrastructure including an on-site acid plant and accommodation camp.

LOT believes Kayelekera can support a viable long-term operation and has the potential to be one of the first uranium projects to recommence production.

Lotus has full backing of government

Lotus managing director Keith 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 Government to continue our ongoing 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.”

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