Africa-Press – Malawi. Malawi’s mining dream is being choked by fuel drums and diesel smoke. Kayelekera Uranium Mine in Karonga—touted as the country’s biggest mining comeback story—is burning millions just to keep its machines running because it has no reliable electricity supply.
Lotus Resources Limited, the Australian company running the mine, has admitted that dependence on diesel-powered generators is draining resources and slowing down progress. In its latest financial report, the company said restarting production at Kayelekera has already been hit by high operational costs from running gensets and importing chemicals.
The company plans to connect to the Electricity Supply Corporation of Malawi (Escom) grid, but that will only happen in the second half of 2026. Until then, the mine is surviving on costly diesel and trucking sulphuric acid across long distances—expenses that cut into profits before uranium sales even begin.
“We are now focused on optimising logistics and investing in long-term infrastructure, including power connection,” said Lotus managing director Greg Bittar.
But the truth is simple: Kayelekera is mining in the dark.
Why this matters
The mining sector in Malawi was expected to be a game-changer for the economy. With four export deals already signed to supply uranium between 2026 and 2029, Kayelekera should have been leading the way. Instead, the mine is trapped in a cycle of stop-gap measures—diesel here, imported chemicals there, all while waiting for electricity.
Experts warn this is not just Kayelekera’s problem. Geologist Ignatius Kamwanje told Nation that relying on diesel is “dangerously expensive” and undermines the long-term survival of mining projects in Malawi. “Yes, diesel backup is necessary, but it eats away profits and makes operations uncompetitive,” he said.
Escom’s side of the story
Escom chief operations officer Maxwell Mulimakwenda distanced the power supplier from the delays. He argued that Lotus itself is responsible for financing the power line and substation under a $20.6 million project called Project Powerline.
“They [Lotus] had to divert the route of the power line to protect sensitive species, and they are funding the infrastructure themselves. Once construction is done, we will connect them. Power is not the issue—we can easily supply the 7.5 megawatts they need,” Mulimakwenda said.
Still, questions remain: Why must the mine wait until 2026 for power in a country desperate for foreign exchange? Why is Malawi still failing to align its mining and energy policies so that investors hit the ground running instead of running on diesel?
The bigger picture
Malawi has ambitions of using mining to diversify the economy away from tobacco. Yet, without stable, affordable power, mines like Kayelekera risk collapsing under the weight of fuel costs before they can bring in much-needed revenue.
As it stands, the mine’s lifeline is a hybrid system—future Escom power, some solar, and a co-generation plant. But for now, the heavy reliance on diesel remains the most painful reminder of how poor energy planning is stunting Malawi’s mining industry.
Kayelekera is digging uranium, but diesel is digging its grave.
For More News And Analysis About Malawi Follow Africa-Press
