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Lotus progresses Kayelekera grid connection arrangement ahead of production restart

Lotus' Kayelekera project

Lotus' Kayelekera project

1st April 2025

By: Marleny Arnoldi

Deputy Editor Online

     

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ASX-listed Lotus Resources has signed two agreements with the Electricity Supply Corporation of Malawi (Escom) to facilitate connection of the Kayelekera uranium project to the national grid.

The agreements signed with the power utility include a power implementation and a power supply agreement.

The agreements provide for Lotus to finance, design and build a new transmission line and substation infrastructure at the mine. On completion of construction and commissioning, Lotus will transfer ownership of the entirety of the infrastructure to Escom.

Lotus’ special advisers have already completed a tender process for substation works and transmission line construction, which will include the installation of a new 66 kV line feeder bay and associated secondary systems, 45 km of 66 kV transmission line and a new substation.

The estimated cost for the powerline project is in line with the $20.6-million estimated in the accelerated restart plan of Kayelekera. The company is still reviewing the feasibility of a $4-million battery energy storage system as part of the power supply agreements, but this has not been accounted for in the cost estimate.

The grid connection is expected in 2026. Until then, Lotus will use existing on-site diesel power generation as an interim measure to power production.

“Connecting to the Malawi grid will minimise Kayelekera’s carbon emissions as the vast majority of electricity in the country is generated by hydropower,” Lotus says.

Meanwhile, Lotus is fully funded to progress the restart of production at the project, with first uranium production on track for the third quarter.

Lotus has signed a binding contract for the sale and purchase of natural uranium concentrates with North American power utility PSEG Nuclear. PSEG will buy 1.6-million pounds of product between 2026 and 2029.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

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