Leading international law firm Herbert Smith Freehills has advised Lotus Resources (Lotus), a leading Africa-focused advanced uranium player, on the signing of its mine development agreement (MDA) with the Government of Malawi for its Kayelekera uranium mine (the Kayelekera Uranium Project).
The Kayelekera Uranium Project is the fourth largest uranium asset globally. Production was put on pause by the previous owner in 2014 owing to a fall in global uranium prices, which last month reached 16-year highs.
In the past decade, the country has only agreed one other mine development agreement. With Malawi’s abundant critical minerals, mining has the potential to reduce poverty, add to exports and the balance of payments while reducing the country’s dependence on agriculture and development assistance.
Lotus’s negotiations with the Government of Malawi were based on the concept of a fair and equitable split of economic benefits for investors and the country.
The Herbert Smith Freehills team was led by partners Peter Leon and Patrick Leyden, supported by partner Hannah Ambrose, senior associate Divyanshu Agrawal and associate Alessandra Yolland, working closely with our Paris office, in London, and by director Ernst MĂĽller, senior associate Joni Bernstein and associate Giorgia Silvaggi in Johannesburg.
Partner Peter Leon comments:Â “We are proud to have advised Lotus Resources on its MDA with the Government of Malawi, a milestone transaction that will have long-term, wide-reaching benefits for local communities, the Malawian people and the Government. The deal demonstrates our cross-border capabilities, along with our expertise in mining and the energy transition.”
The team initially advised Lotus on Malawi’s mineral and fiscal regimes. This was followed by advice on the provisions of the mine development agreement, how the terms should be updated to follow International best practice and the limitations imposed under Malawi’s laws. The final focus was on negotiating and concluding the MDA.
