Kayelekera’s $200 Million Revival: Malawi Moves Toward a Nuclear Future

Malawi’s dormant Kayelekera Uranium Mine is restarting thanks to a $200M investment from Lotus Resources, aimed for a Q3 2025 launch. This reopening follows a global shift towards nuclear energy as a cleaner alternative. Contracts for uranium selling are already secured, but community groups raise environmental and transparency concerns.

In a significant move for Malawi’s energy sector, the Kayelekera Uranium Mine is primed for a revival, backed by a substantial MK350 billion (approximately US$200 million) investment from Lotus Resources, an Australian firm. The mine, which has been idle since 2014, is scheduled to recommence operations in the third quarter of 2025, a response to the growing global demand for clean and stable energy sources. Amid concerns regarding the reliability of renewable energy options, there is renewed interest in nuclear power as a viable, zero-emission alternative.

Lotus Resources emphasized the strategic importance of Kayelekera at the recent Macquarie Australia Conference, stating, “Kayelekera is a world-class asset. It’s key to the global energy transition.” This shift in focus is notably timed with COP28’s declaration, where 22 nations pledged to increase nuclear energy production threefold by 2050, a number which bolstered to 31 by 2024, intensifying demand for uranium as market prices have surged more than double since 2020.

Historically, the Kayelekera mine was one of Malawi’s leading exporters, producing over 1,000 tonnes of uranium annually before its closure. Given that much of the necessary infrastructure remains intact, the mine is positioned to quickly resume operations. Earlier commitments have already seen Lotus sign contracts to sell approximately 3.8 million pounds of uranium oxide to various buyers, including PSEG Nuclear from the United States, spanning the years 2026 to 2029. These agreements are secured against market fluctuations, providing a safeguard for the company.

Lotus has invested more than US$200 million into the mine’s infrastructure and managed to raise an additional US$38.5 million since 2022, making Kayelekera one of the most promising uranium projects in Africa for a restart. The project has a strong connection to the local community, with over 90% of its previous workforce being Malawian, and Lotus has announced its commitment to prioritize local hiring in its upcoming operations.

In May 2025, Malawi’s Atomic Energy Regulatory Authority granted conditional approval for the mine to restart, contingent upon ongoing environmental monitoring and community engagement. However, civil society organizations are advocating for more stringent measures. Activists from the Natural Resources Justice Network have expressed concerns over potential radiation hazards, waste management challenges, and inequities regarding community benefit-sharing. They are calling for complete transparency from Lotus Resources as preparations move forward.

Although the uranium produced will not directly supply Malawi’s electrical grid, the potential for major economic impacts, should the project be managed effectively, cannot be overlooked in a nation where only about 15% of the population currently has access to electricity.

The revival of the Kayelekera Uranium Mine, driven by a significant investment from Lotus Resources, marks a strategic turn for Malawi as it strives to establish itself in the global nuclear energy landscape. With the mine’s reopening set for late 2025, local benefits depend heavily on responsible management and ongoing community engagement amid rising concerns from activists. The overarching goal remains to leverage this resource for broader economic progress, particularly in a country with low electricity access.

Original Source: www.nyasatimes.com