Lotus Resources has halted production at its Kayelekera uranium mine in Malawi after sulfuric acid supplies were disrupted by Middle East geopolitical tensions. The suspension marks the latest ripple from a chemical shortage that has already impacted copper miners in the Democratic Republic of Congo and Zambia, spreading to Africa's uranium sector.

Trading house Mercuria Energy Group recently signed its first prepayment agreement with a uranium miner, highlighting growing supply chain concerns in the nuclear fuel market. Lotus must still deliver 1.01 million pounds of uranium during the second half of 2026 under existing contracts, but negotiations for 2027 deferrals suggest delivery challenges ahead.

Production at Kayelekera had been ramping up, with 73,600 pounds produced in May compared to 47,300 pounds in April. However, technical problems with the mine's on-site sulfuric acid plant furnace have compounded supply issues. Lotus restarted operations in 2025 but now expects stable production won't resume until late 2026.

Research firm Benchmark notes soaring sulfur and sulfuric acid prices have created supply constraints across multiple mineral value chains, including lithium, nickel, cobalt and copper. With Middle Eastern oil refinery damage potentially prolonging disruptions, more critical minerals producers may face operational shutdowns.