Lotus Resources produces first uranium at Kayelekera

Malawi’s Uranium Milestone: Lotus Resources Fuels Economic Growth

Post was last updated: September 2, 2025

Key Business Points

  • Lotus Resources Limited has produced its first yellow cake, a significant step towards boosting Malawi’s mining contribution to GDP, which currently stands at 0.7 percent.
  • The company expects to increase production in the first quarter of 2026 and has already secured four binding sale arrangements for up to 3.8 million pounds of uranium.
  • The restart of Kayelekera mine is expected to improve the mining sector’s contribution to GDP, with predictions that it will grow to 12 percent by 2027 when Kayelekera and other mines are in full operation, a development that will be a major boost to the economy, or mphamvu ikulu ya chiyago.

The production of yellow cake by Lotus Resources Limited, a firm that owns an 85 percent stake in Kayelekera Uranium Mine, marks a significant milestone in the country’s mining industry. According to mining experts, this development is a key step towards increasing the mining sector’s contribution to Malawi’s GDP. The company’s managing director, Greg Bittar, expressed his delight at the progress made, stating that the milestone positions the mining firm to join the ranks of global uranium producers. This achievement is a testament to the quality and dedication of Lotus’ team, contractors, and stakeholders, and is expected to have a positive impact on the country’s economy, particularly in the wofiira wa chigwa, or mining sector.

The restart of Kayelekera mine is expected to have a major impact on the economy, with predictions that the mining sector’s contribution to GDP will grow to 12 percent by 2027. This is according to Grain Malunga, national coordinator of the Chamber of Mines and Energy, who stated that the sector’s contribution to GDP is expected to increase significantly when Kayelekera and other mines, such as Lindian Resources Limited’s Kangankunde and Globe Metals’ Kanyika Mine, are in full operation. Ignatius Kamwanje, a mining expert, also described the restart of Kayelekera mine as a major boost to the economy, noting that the mining sector’s contribution to GDP had dropped significantly since the mine was closed in 2014.

The production of yellow cake is also expected to increase the country’s export earnings, with Lotus Resources Limited having already secured four binding sale arrangements for up to 3.8 million pounds of uranium. This development is a significant step towards diversifying the country’s economy, which is currently heavily reliant on ufumu, or agriculture. According to President Lazarus Chakwera, mining, alongside agriculture, tourism, and manufacturing, is a key driver of economic growth, and the restart of Kayelekera mine is a significant step towards achieving this goal. The government has also signed a mining development agreement with Lotus Resources Limited, which saw Lilongwe owning a 15 percent stake in the mine. Overall, the production of yellow cake by Lotus Resources Limited is a significant development for Malawi’s mining industry, and is expected to have a positive impact on the country’s economy, particularly in terms of increasing export earnings and diversifying the economy, which will be a major boost to malawi wofiira, or Malawi’s economy.

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Vanessa Banda
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