Lotus Resources has signed a binding uranium supply agreement with a major US utility. This contract covers the period 2026-2029 and involves the sale of 600,000 pounds of U3O8 extracted from the Kayelekera project in Malawi, with a fixed price adjusted for inflation.
The expansion and supply of uranium
The company has secured contracts representing the sale of up to 3.2 million pounds of uranium, aiming to reduce its exposure to spot market volatility. This agreement builds on a previously signed contract with Curzon, structured under the “Take-or-Pay” model, which establishes a minimum of 700,000 pounds of uranium for 2026-2029 and a possible extension to 1 million pounds for 2026-2032.
The price agreed in this contract is based on long-term values published by leading nuclear industry analyst firms, with a slight, non-material discount. Furthermore, an annual increase aligned with the Reserve Bank of Australia (RBA) inflation target has been established, ensuring financial stability for Lotus and its investors.
Lotus maintains its plan to reactivate the Kayelekera mine, with projections to start production in the third quarter of 2025. This mine, which historically produced approximately 11 million pounds of uranium between 2009 and 2014, has an estimated reserve of 23 million pounds of U3O8, consolidating its position as a key asset in the company’s growth strategy.
Demand for long-term contracts in the nuclear sector continues to increase, driven by the interest of utility companies in securing uranium supplies for their operations. Lotus continues to negotiate with other strategic buyers in North America and other regions, strengthening its market presence and ensuring competitive pricing.
Follow us on social media and don’t miss any of our posts!
YouTube LinkedIn Facebook Instagram X (Twitter) TikTok
Source and photo: Lotus Resources / PDF
