Malawi’s Kayelekera Uranium Mine Set for $200M Revitalization

Malawi’s Kayelekera Uranium Mine is set to reopen in 2025, backed by a $200 million investment from Australia’s Lotus Resources. This comes amid a global nuclear energy revival as countries increase nuclear power capacity. The mine has existing infrastructure and contracts for uranium sales, but local activists raise concerns about environmental impact and community benefits.

Malawi’s Kayelekera Uranium Mine is poised for a significant revival with a $200 million investment from Australia’s Lotus Resources. This investment signals a major shift for the country as the mine, which has been inactive since 2014, expects to restart operations by the third quarter of 2025. The renewed interest in nuclear power, viewed as a clean and stable energy source amid soaring demand, places Malawi on the map of a global nuclear energy resurgence.

The mine, which was once a leading exporter, had a production capacity exceeding 1,000 tonnes of uranium annually. With existing infrastructure, it holds a substantial advantage for swift rehabilitation. Lotus Resources has already secured contracts to deliver approximately 3.8 million pounds of uranium oxide to four buyers, including PSEG Nuclear in the United States, between 2026 and 2029. These agreements will be linked to market prices, providing a buffer against fluctuations.

Nuclear power’s appeal has surged again, especially as it is being advocated as a vital zero-emission alternative to fossil fuels, particularly when renewable sources face reliability issues. At the recent Macquarie Australia Conference, the company emphasized that Kayelekera is “a world-class asset” critical to the transition in global energy.

Significantly, at COP28 earlier this year, 22 nations committed to tripling nuclear power capacity by 2050, a figure that has since climbed to 31. This escalating urgency has driven uranium prices to more than double since 2020, prompting utility companies to race for adequate supply.

Since 2022, Lotus has already invested over $200 million in prior infrastructure and has raised an additional $38.5 million, bolstering Kayelekera’s status as one of Africa’s foremost uranium restart projects. Throughout the mine’s previous operations, over 90% of its workforce comprised Malawians, which Lotus states will remain a focus as they resume operations.

In May 2025, Malawi’s Atomic Energy Regulatory Authority conditionally approved the mine’s reopening, albeit under the stipulation of stringent environmental monitoring and ongoing community consultations. Meanwhile, civil society groups are advocating for further obligations. Activists from the Natural Resources Justice Network have raised alarms concerning radiation hazards, waste management issues, and the need for equitable community benefit-sharing, calling for total transparency before any significant operational scale-up occurs.

While the uranium from Kayelekera will not directly contribute to Malawi’s energy grid, the potential economic impacts could be substantial—if managed ethically and strategically—in a nation where mere 15% access to electricity is the norm.

The revival of the Kayelekera Uranium Mine represents a bold step for Malawi towards joining the global trend of nuclear energy utilization. With a significant investment and market demand for uranium on the rise, the mine could create economic opportunities for the country. However, concerns about environmental oversight and local community involvement persist, highlighting the need for responsible management of this venture.

Original Source: www.nyasatimes.com