K35bn Investment Set to Electrify Malawi’s Economy: Kayelekera Grid Connection to Fuel Business Growth
Key Business Points
- Grid power connection: Australian mining firm Lotus Resources Limited plans to connect its Kayelekera Mine in Karonga to grid power at a cost of $19.7 million (about K34.5 billion) to reduce power costs and carbon emissions.
- Cost savings: The connection is expected to reduce power costs by $5 to $6/lb, making the mine more competitive and increasing its economic returns.
- Operational milestone: Processing of high-grade ore has commenced, marking a key milestone in the restart and ramp-up of operations, with first product expected this quarter, a development that is kukwela kwa uzimbe (exciting for business) in Malawi.
The announcement by Lotus Resources Limited to connect its Kayelekera Mine to grid power is a significant development for Malawi’s mining sector, with the potential to reduce power costs and carbon emissions. The firm expects the connection to be completed by the end of 2026, with a total contracted cost of $19.7 million. This investment is expected to have a positive impact on the mine’s uzimbe wa kifedha (financial performance) and contribute to the country’s economic growth.
The connection to the national grid is also expected to reduce the mine’s reliance on diesel power, which will not only reduce costs but also tsanzo la mafuta (fuel emissions) and improve the mine’s environmental sustainability. The installation of a Battery Energy Storage System (BESS) will ensure power continuity during grid disruptions or diesel backup use, further reducing the mine’s environmental footprint.
The commencement of processing of high-grade ore is a significant milestone in the restart and ramp-up of operations, with all leach tanks now operating at full capacity. The final commissioning of the precipitation, drying, and packaging circuits is underway, with first product expected this quarter. This development is a major boost to mwimbilo wa uchumi (economic activity) in the region and is expected to create new opportunities for local businesses and entrepreneurs.
Lotus Managing Director Greg Bittar said the firm is committed to investing in critical infrastructure to support the long-term optimization of Kayelekera, ensuring that the mine operates in an ESG-friendly manner that benefits local communities, Malawi, and the environment. The Minister of Mining, Ken Zikhale Ng’oma, has also expressed optimism that the Kayerekera mine will enhance the country’s economy once it becomes operational in September this year, a development that is muzi wa kukonda (good news) for Malawi’s business community.
Overall, the development of the Kayelekera Mine is a significant opportunity for Malawi’s economic growth and uzimbe wa biashara (business growth), with the potential to create new jobs, stimulate local economic activity, and contribute to the country’s revenue. As the mine becomes operational, it is expected to have a positive impact on the local economy, with opportunities for biashara za ndani (local businesses) to supply goods and services to the mine.
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