(Ecofin Agency) - Lotus Resources should resume operations at its Kayelekera uranium mine in Malawi by the third quarter of 2025, amid a rising global demand. Nuclear power plants are already securing future production as the market for long-term uranium contracts strengthens.

Lotus Resources announced on March 17 that it signed a binding agreement with a North American utility to supply 600,000 pounds of uranium between 2026 and 2029. The deal, priced based on long-term market rates, follows a similar agreement with Curzon Uranium for at least 700,000 pounds over the same period, with an option to reach 1 million pounds by 2032. 

Lotus also has a pending memorandum of understanding (MoU)with a subsidiary of the American Public Sector Enterprise Group (PSEG). This MoU brings the Australian firm’s total contracted sales to between 2.9 million and 3.2 million pounds over the next decade.

Lotus is focused on minimizing exposure to volatile spot markets by prioritizing long-term contracts indexed to market prices. The company is actively negotiating with additional buyers, particularly in North America, to secure contracts for the remainder of its planned production.

The Kayelekera mine, which has been idle since 2014, is expected to produce 19.3 million pounds of uranium over 10 years once operations resume. Lotus CEO, Greg Bittar, highlighted strong customer interest despite weak spot prices, emphasizing that utilities are locking in long-term deals to secure supply amid growing demand.

While Lotus has made significant progress in securing contracts, there is no guarantee that current prices will reflect future market conditions. With global demand rising and potential shortages looming, uranium prices—valued at $80 per pound by Cameco as of February—could climb even higher in the coming years.

This article was initially published in French by Emiliano Tossou 

Edited in English by Ange Jason Quenum