By: Energy capital & power

Australian mining company Lotus Resources has finalized three agreements for the Kayelekera Uranium Project in Malawi.

The agreements include a power implementation deal with the Electricity Supply Corporation of Malawi (ESCOM) to upgrade grid infrastructure and connect the project to the national grid. Lotus will fund the $20.6 million project, which includes constructing a 45km transmission line and a substation. A $4 million battery energy storage facility could potentially be integrated with the refurbished grid in future.

Additionally, a 10-year power supply agreement with ESCOM will enable the provision of electricity to the mine, once the upgraded grid becomes operational in 2026. A contract for the sale and purchase of natural uranium concentrate signed with utility company PSEG Nuclear enables Lotus to provide the company with 1.6M lbs of U3O8 for the period 2026 – 2029.

“This is another terrific milestone towards the optimization of the Kayelekera Project,” stated Greg Bittar, Managing Director, Lotus Resources.

Meanwhile, Lotus, in partnership with engineering firms ECG Engineering and ResourcesWA, has also completed a tender for the scope of works for the grid connection and substation works. The signing of the agreements follows Lotus progressing Kayelekera to achieve first production in Q3, 2025.