(Ecofin Agency) - According to McKinsey, Mining generates 4%-7% of direct global greenhouse gas emissions. This, paired with current energy transition challenges, is driving more mining companies to adopt clean energy solutions as power sources.

Lotus Resources revealed on April 1, 2025, that it partnered with Malawi’s national electricity company, ESCOM, to connect its Kayelekera uranium mine to the national grid. The Canadian company aims to cut the mine’s carbon emissions through the move. However, until the facility gets connected to the grid next year, it will be fueled by a diesel plant.

Lotus plans to link the mine through a new 66 kV transmission line and a substation built on-site. ECG Engineering will execute the project,  which Lotus funded exclusively, under a $20.6 million initiative called Project Powerline.

Upon commissioning, the facilities’ ownership will be transferred to ESCOM. Afterwards, the Malawian utility will supply power to the mine, as stated under its deal with Lotus. 

The deal spans 10 years, allowing Lotus to terminate early with a 30-day notice. While financial details remain undisclosed, electricity tariffs will follow rates set by the Malawi Energy Regulatory Authority (MERA).

Once operational, the project will primarily use clean energy from Malawi’s hydroelectric-dominated grid, as the national grid is primarily fueled by hydropower plants. According to LowCarbonPower, in 2022, 79% of the grid’s input is hydropower.

Lotus’ recent move falls under a broader dynamic in the mining sector, with several initiatives launched to reduce carbon footprints and support global goals to limit warming to 1.5°C by 2030. According to McKinsey, the industry generates between 4% and 7% of direct greenhouse gas emissions.

Other companies in Africa are also investing in decarbonization. B2Gold expanded its solar plant at Fekola gold mine in late 2024, achieving a total capacity of 52 MW. Rio Tinto’s Richards Bay Minerals committed to purchasing 230 MW from South Africa’s Overberg wind farm.

Despite these initiatives, a report by dss+ highlights that the mining sector’s annual emissions reduction rate of 2% falls short of supporting the global energy transition. Declining ore quality has intensified extraction efforts, driving emissions higher.

Producers of critical minerals for the energy transition face unique pressures. 

Companies like Lotus must meet rising demand for minerals like uranium while advancing their energy transition plans.

The Kayelekera mine has been inactive since 2014, but should resume in the next quarter. Lotus expects the mine to produce 19.3 million pounds of uranium over a decade.

This article was initially published in French by Aurel Sèdjro Houenou (intern)

Edited in English by Ola Schad Akinocho