As a part of cost saving initiative, Lotus shut down and decommissioned water treatment plant, will replace it with more cost-effective evaporation system
Lotus Resources Limited (LOT, Lotus or the Company) provided an update on its Kayelekera Uranium Project (the Project) in Malawi in relation to a significant reduction in care and maintenance cost guidance and with regard to advancements of certain recommencement activities for uranium production at the Project.
Care and maintenance operating cost guidance at the Kayelekera Uranium Project reduced by 75% to an annualised cost of US$1.2M from the original 2019 budget estimate of c.US$5M.
- A safe and environmentally responsible approach has been followed that complies with all
- Number of full-time employees onsite reduced to 16 (down from 116).
- Non-essential services performed by contractors.
- Diesel fuel price reductions negotiated.
Water treatment activities have now been completed with dam levels reduced to required levels and a revised strategy for next wet season being developed that should allow further potential savings.
- Water treatment plant is shut down and fully decommissioned.
- Water management will be based on a more cost-effective evaporation system.
Lotus is continuing to work towards a restart study with advancements in process optimisation and improvement plans which will form the basis for the study.
Eduard Smirnov, Managing Director, commented: “Our operations and regional teams have done a great job in taking timely action to introduce cost-effective, safe and environment friendly and
regulatory compliant measures at the Project site. A key focus of this plan is on preserving cash and advancing our plans to build a new uranium supplier while coping with the restrictive conditions
during Covid-19 pandemic.”