ASX-listed Lotus Resources has temporarily suspended processing operations at its Kayelekera uranium mine in Malawi following a fire that damaged electrical infrastructure, with production expected to be disrupted for about three weeks.

The company reported on Tuesday that a fire at the weekend affected two newly installed electrical control panels in the drying and packaging area of the operation. The incident was quickly contained, with damage limited to the panels and no injuries reported.

Lotus has halted processing activities to allow for repairs, including the onsite rebuilding of the damaged panels, while replacement units will be sourced externally.

The company said the interruption was expected to result in about three weeks of downtime to allow for repairs, testing and recommissioning. Mining operations at the site would continue during this period.

A root cause analysis is under way to determine the origin of the fire and assess the performance of fire prevention systems, with remedial measures to be implemented.

Despite the setback, MD Greg Bittar said the company remained on track to achieve steady-state production in the second quarter of 2026.

“Despite this delay, the progress in positioning Kayelekera for steady-state production this quarter has been encouraging, and we still expect to achieve this in the second quarter of the 2026 calendar year,” he said.

The company noted that reagent planning, mill performance and other key processing indicators continued to support its ramp-up strategy.

Further, Lotus reported that sulphuric acid inventory at site was currently at storage capacity, with additional volumes pending offload and in transit.

The company reiterated that existing inventory, delivery schedules and future orders for acid, diesel and sulphur were sufficient to support ramp-up to sustained production levels.

However, it cautioned that global supply constraints continued to affect pricing for key consumables.

The Kayelekera sulphuric acid plant is ready for hot commissioning, but Lotus said this had been deferred until uranium production resumed, given the current high acid inventory levels.