• Fire halts production at Malawi’s Kayelekera uranium mine

• Damage to electrical panels, three-week shutdown for repairs

• Operator still targets commercial output and sales this quarter

Production at the Kayelekera uranium mine in Malawi has been suspended after a fire at the site over the weekend, operator Lotus Resources said on Tuesday.

The Australian company said the fire broke out in the drying and packaging area, damaging two electrical panels. Lotus has halted production for three weeks to investigate the cause and carry out repairs. Mining activities are expected to continue on schedule, as it targets nameplate production, a key milestone ahead of commercial operations.

The stoppage is a setback to the ramp-up of the mine, which restarted after a decade-long shutdown, though Lotus said it still aims to begin sales this quarter.
 “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 Q2 CY2026. Reagent planning and inventories, mill performance and other key processing parameters all provide visibility on this,” Chief Executive Greg Bittar said.

Under the mine’s operating plan, Kayelekera targets average output of 200,000 pounds of uranium per month, or about 2.4 million pounds a year. Curzon Uranium and a “North American power company” have agreed to source from the mine.

Nuclear fuel prices have been recovering, with futures trading around $91 per pound in March, according to Cameco, making it critical for Lotus to meet its commercial targets.

The milestone also carries significant implications for Malawi, which stands to gain a new source of revenue. The government holds a 15% stake in the project and is entitled to a 5% royalty on revenues generated.

Aurel Sèdjro Houenou