Lotus Resources, through its 85%-owned subsidiary Lotus Africa, has signed a binding uranium offtake agreement with a North American utility.
The contract involves the sale of 600,000lb of triuranium octoxide (U3O8) from the Kayelekera project in Malawi, scheduled for delivery between 2026 and 2029.
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The agreement reflects a fixed US dollar price based on long-term market prices, with a minor discount applied.
The contract includes a fixed-price escalation percentage per annum for future deliveries, applicable from the first delivery year. This is aligned with the Reserve Bank of Australia’s long-term inflation target.
The Australian company stated that the buyer, whose name was not disclosed, is one of North America’s largest energy companies.
Lotus managing director Greg Bittar said: “Formalising this offtake arrangement with a key customer is an important milestone for Lotus as we continue to progress production restart plans at Kayelekera towards our Q3 2025 goal.
“Notwithstanding recent weakness in spot prices, our engagement with customers and potential customers, comprising mostly North American utilities, has demonstrated to us the continuing strength in the term contracting market, as uranium customers continue to secure long-term contracts and actively seek to support new supply.”
According to the company’s website, the Kayelekera mine yielded 11mlb of yellowcake between 2009 and 2014 before ceasing operations due to low uranium market prices. Last year, Lotus formally announced plans to restart the project to capitalise on stronger uranium prices and nuclear supply gaps, targeting production by the third quarter (Q3) of 2025.
In addition to the deal with the North American utility, Lotus has formalised a previously announced agreement with Curzon. The “take-or-pay” agreement covers a minimum of 700,000lb of uranium between 2026 and 2029, with potential escalation to 1mlb by 2032.
The pricing structure mirrors the fixed-price escalation terms of the North American utility agreement.
These deals, along with the PSEG Nuclear offtake term sheets signed earlier this year, represent the sale of up to 3.2mlb of uranium to be produced at Kayelekera from 2026 to 2032.
Lotus said it aims to leverage ongoing demand and prioritise contract pricing based on fixed and long-term uranium prices, minimising exposure to spot market fluctuations.
The company remains actively engaged with potential offtakers, focusing on North American nuclear power utilities, to secure more substantial volumes of U3O8 from Kayelekera.
Lotus confirmed that it is on schedule to produce its first uranium from the Kayelekera project in Q3 2025.
