Core Lithium (OTCPL:CXOXF) has initiated a significant operational ramp-up at its flagship Finniss project in Australia’s Northern Territory, commencing open-pit mining at the Grants deposit and simultaneously awarding a substantial US$274 million contract for the long-term development of its BP33 underground operation. This dual-pronged strategy underscores the company’s commitment to establishing Finniss as a key lithium producer, balancing immediate cash flow generation with foundational infrastructure for sustained output.
Finniss Operations Enter Active Mining Phase
Physical mining activities have officially recommenced at Finniss, with blasting and excavation now underway at the Grants open pit. This initial phase is being executed under a contract awarded to NRW Pty in April. The Grants pit is strategically designed as a low-strip ore source, intended to efficiently feed the site’s processing plant and serve as the immediate engine for the Finniss restart.
Management anticipates that the Grants pit will yield approximately 134,000 tonnes of SC5 spodumene product from an accessible ore body of 784,000 tonnes. The processing of ore from Grants is slated to begin in the September quarter of 2026, positioning Core Lithium to execute its first concentrate shipment in the December quarter of the same year. This timeline reflects a rapid transition from final investment decision (FID) to active production.
Core Managing Director Paul Brown emphasized the company’s swift execution, stating, ‘In less than three months since FID, we have secured funding, awarded key mining contracts and transitioned to active mining, demonstrating disciplined execution.’ Brown further highlighted the strategic importance of the Grants pit, noting, ‘Grants provides a low-risk, near-term ore source to underpin early production and cashflow, while BP33 continues to progress as the long-term foundation of the operation.’
US$274 Million Contract Anchors Long-Term Underground Future
Parallel to the ramp-up of surface operations, Core Lithium is making significant strides in advancing the BP33 underground deposit, which is projected to be central to Finniss’s long-term economic viability. A week prior to the restart announcement, the company awarded a three-year, US$274 million underground mining services contract to Dev Mining Services, a subsidiary of Develop Global (AU:DVP,OTCPL:VTEXF). This agreement includes an option for a two-year extension, providing flexibility for extended operations.
The comprehensive contract encompasses critical mining activities, including drill and blast operations, load and haul services, and decline development, all essential for establishing the underground infrastructure. BP33 is integral to Core Lithium’s overarching mine plan, hosted within a massive, sub-vertical pegmatite body that extends more than 800 meters deep. This deposit is expected to supply a substantial 88 percent of Finniss’s total ore feed over the next decade, underscoring its foundational role.
Develop Global is targeting mobilization of its teams and equipment in June, with underground decline works anticipated to commence in July. This aggressive timeline aims to bring the long-term ore source online efficiently.
BP33: A Key Driver for Improved Economics
Paul Brown reiterated the strategic significance of the BP33 contract, stating, ‘The award of the BP33 underground mining contract is a major milestone in the development of Finniss and a strong endorsement of the quality of the project.’ He further elaborated on the deposit’s impact on the project’s financial profile: ‘BP33 is expected to deliver the majority of ore feed over the first 10 years of operation and is a key driver of Finniss’ significantly improved cost profile and economics.’
The first ore from the BP33 underground operation is anticipated by mid-2027. This milestone is expected to pave the way for the Finniss complex to reach its nameplate production capacity of 214,000 tonnes per annum by mid-2028. The phased approach, starting with the Grants open pit and transitioning to the high-volume BP33 underground, is designed to optimize production and revenue streams while establishing a robust, long-term operational base.
Core Lithium’s decisive actions in restarting mining and securing a major underground contract signal a clear trajectory towards becoming a significant player in the global lithium supply chain. The disciplined execution, as noted by managing director Paul Brown, from securing funding to awarding key contracts and commencing active mining, positions the Finniss operation to deliver on its production and financial targets, leveraging both near-term open-pit output and a substantial long-term underground resource.
