Lotus says well covered on diesel and reagents as production ramps up
Uranium developer Lotus Resources says it remains on track to achieve nameplate production at its Kayelekera uranium mine during the second quarter, despite emerging supply pressures across global markets.
Kayelekera is an opencast mine in northern Malawi that restarted production in August last year under Lotus.
The company reported continued operational improvement through late February and March, supporting its ramp-up trajectory at the restart operation.
While the crisis in the Middle East has raised concerns about fuel and reagent supply, Lotus said this week its key supply chains remained intact, underpinned by forward contracting and diversified sourcing strategies.
Diesel supply, a critical input for mining operations, has been secured through to the end of June at pricing below current spot levels. The company added that it had not received any indication of disruptions from suppliers and was evaluating additional contracts for the second half of the year, while monitoring price volatility.
Reagent supply has also been bolstered, with the company building on-site inventories of sulphuric acid and maintaining a steady pipeline of deliveries. However, Lotus notes ongoing pressure on pricing and freight costs for acid supply and it is progressing additional orders to mitigate third-party risk.
Sulphur supply is similarly secured through to the end of June, with key suppliers holding inventory in Tanzania. Although no immediate disruptions are expected, Lotus is assessing alternative supply routes and additional storage options, including offsite facilities, to ensure continuity as it prepares to commission its acid plant from April.
The company said it continues to engage with suppliers and monitor developments, as global supply chains remain under strain.
Kayelekera is a past-producing uranium mine and forms the cornerstone of Lotus’ strategy to re-establish production.
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