Core Lithium plans underground move to revive Finniss mine

A Territory miner has outlined a new direction for its suspended project. Read where they’re headed.

Core Lithium, owner of the troubled Finniss mine, has outlined an ambitious revitalisation plan which stops short of providing a provisional resumption date.

Released this month, the restart study proposes extending the potential mine life from eight to 20 years at Finniss, contingent on transitioning the project underground.

The report identifies expansion beyond Asia into the Middle East and the Finniss mine’s proximity to Darwin Port.

The mine is “one of the closest lithium operations to an export port in Australia”, with Darwin Port having “sufficient capacity to support planned operations and future expansion”.

For the mine to be successful, the report identified a series of productivity measures including reducing mining and processing costs and lifting concentrate production.

It envisages the transitioning of the processing plant and infrastructure to 100 per cent Core-owned, allowing full operational control.

Core Lithium chief executive Paul Brown.

Consultant Morgan Stanley Australia has been appointed corporate adviser to lead a shareholder focused funding strategy, and the board has deferred a final investment decision “contingent on market conditions and securing a suitable funding pathway”.

Transitioning the Grants mine from open pit to underground is central to its revival plans with future operations including BP33, which was under construction when the operation was suspended, and future prospects at Blackbeard and Carlton.

The analysis said underground transition would increase access to high-grade, continuous deposits, leave a smaller surface footprint and reduce waste and mining dilution.

Core Lithium chief executive Paul Brown said the restart plan focused on the company’s strengths, including existing infrastructure, high-grade ore bodies and a successful processing plant.

“We’ve undertaken a rigorous, bottom-up review of every aspect of the operation,” he said. “The study brings together our operating experience to deliver a plan that is more robust, more efficient and built for the long term.

First direct shipping ore headed to China.

“At BP33, we are developing a large-scale underground mine. Grants will shift to underground mining, cutting costs and doubling its mine life. Carlton will use Grants’ surface infrastructure supporting a 20 year mine life. Blackbeard offers further potential to extend mine life and expand operations.

“Our plant upgrades will improve recovery and reduce contaminants, while keeping capital costs low. These improvements include enhanced screening, with more affordable crushing and the addition of a gravity circuit.

“This resets Finniss as a more resilient operation to price volatility, and well be a reliable source of high-quality, coarse-grained spodumene concentrate. The study outlines a lower-cost, longer-life, and scalable operating plan that generates free cast flow of $1.2 billion, representing a six-fold return on pre-production capital.”

For a couple of years, Core Lithium’s Finniss operation was a resource sector wonder.

Lithium was first discovered at Finniss in 2016, a feasibility study completed three years later.

By mid 2022 the processing plant was completed and the first shipment was offloaded at Darwin Port in 2023.

By January 2024 work on the mine had been suspended, with hundreds of people losing their jobs and only a skeleton maintenance staff retained.

Originally published as Core Lithium plans underground move to revive Finniss mine