Lotus Resources Revises Output at Letlhakane Uranium Mine in Botswana
Lotus Resources (ASX: LOT) revised the lifetime of the Letlhakane Uranium mine in Botswana from 15 years to 10 years. According to the updated Scoping Study Report released on 12 March 2025, the reduction in the mine lifetime will consequently lead to a reduction in the total forecasted production from 42.3 to 28.9 million pounds of #uranium.
Currently, the annual production of the Letlahakana mine is roughly 3 millions pounds (lb). The company stresses that the new estimates do not incorporate future potential resources, namely 23 millions pounds as Indicated Resources and another 46 millions pounds as Inferred Resources.
Nevertheless, Lotus Resources maintains its development plan to invest up to USD 465 million into the Letlhakane uranium mine. Lotus is optimistic about uranium with a regain in interest in nuclear energy as the world veers toward #NetZero.
Lotus Resources also possesses the Kayelekera uranium mine in Malawi, which is expected to be operationalized by the end of the year. The Kayelekera asset is projected to produce about 2.5 million pounds per annum (Mlbpa) over a 20-year period, bringing the total annual output of Lotus in Africa to 5.5 millions pounds.
“Our updated Scoping Study validates Letlhakane’s merits as our second uranium project that can meet the longer-term supply shortfall. In a strong long-term uranium price environment — which experts have forecast — Letlhakane has a potential production life of 10 years. Coupled with Kayelekera, where we aim to restart production in 25Q3, this positions Lotus as a 5.5 Mlbpa producer, potentially making it one of the largest uranium producers on the Australian Stock Exchange.”
Lotus Resources MD Greg Bittar
The production cost averages USD 46 per pound while the price of uranium is expected to remain above USD 85 per pound during the 2026 to 2030 period, according to market analysts.
On a related note, Paladin Energy is planning to ramp up its production a the Langer Heinrich Uranium mine in Namibia to 6 millions pounds annually.