Australia’s newest lithium miner: Core Lithium
![Finniss Lithium Project](https://australianminingreview.com.au/wp-content/uploads/2023/08/Finniss-Lithium-Project--1024x576.jpg)
With its Finniss lithium project situated on the outskirts of Darwin, Core Lithium (ASX:CXO) is Australia’s newest lithium miner.
Finniss lies within the Bynoe Pegmatite Field — one of the most prospective areas for lithium in the Northern Territory — and covers over 500km2 of granted tenements.
Finniss hosts a JORC 2012 compliant mineral resource of 15mt at 1.3% lithium oxide and the definitive feasibility study (DFS) in 2021 highlighted an average production of 173ktpa of high-quality lithium concentrate and total ore reserves of 7.4mt.
In early 2020, the Northern Territory Government formally approved the final regulatory hurdle required for the commencement of site activities — the mine management plan.
An extension scoping study then outlined lithium production over 10 years comprising open pit production from reserves and resources at the Grants and Hang Gong prospects and underground production at the Grants, Carlton and BP33 prospects.
In December 2022, the first direct shipping ore (DSO) shipment from Finniss set sail for export from Darwin to Fangcheng, China. This first shipment totalled 15,000 dry metric tonnes of 1.4% lithium oxide DSO.
Core chief executive Gareth Manderson said the first shipment was a significant milestone for the company.
“The first DSO shipment being loaded for export from the Darwin Port is another significant milestone for the company,” he said.
“Core has made good progress during 2022 to transition from a mine developer to lithium producer.
“In 2023 we will continue this transition and the work required to build a quality operating business.”
Major Project Status
![First DSO stockpile from Finnis.](https://australianminingreview.com.au/wp-content/uploads/2023/08/First-DSO-stockpile-from-Finnis-300x186.jpg)
In March 2021, Core received major project status (MPS) from the Federal Government for Finniss.
The award of the MPS, which carries a three-year period, represented a major milestone in Core’s path towards bringing Finniss into production.
Major project status is the Federal Government’s recognition of the strategic significance of a project to Australia. It provides companies with extra support from the Major Projects Facilitation Agency, including a single-entry point for Australian government approvals.
Core’s managing director at the time Stephen Biggins said the granting of MPS for Finniss was another major milestone for the company.
“The award of major project status for our flagship Finniss lithium project is another major milestone for both the company and the Federal Government,” he said.
“When in production, the Finniss Project will be the first Australian lithium producing mine outside of WA, with our proximity to Darwin Port — the country’s nearest port to Asia — serving as a direct route for our lithium to be processed and delivered to end users worldwide.
“This opens up a pathway for a critical minerals hub to be established in Northern Australia, along with the potential for significant associated local manufacturing opportunities.”
Offtake Agreements
Core has established offtake agreements with multiple companies and is also in the process of finalising agreements with other parties.
China’s Sichuan Yahua Industrial Group has committed to 75,000tpa of product from Finniss over an initial four years with the possibility to extend.
In early 2021, Yahua signed a five-year deal with electric vehicle manufacturer Tesla to supply battery-grade lithium hydroxide. It’s expected that Finniss will play a major role sourcing the materials for Yahua to meet that commitment.
Core also has a non-binding memorandum of understanding with Transamine Trading for the supply of 50,000tpa of spodumene concentre over five years.
Mr Biggins said Core was thrilled to reach the agreement with Tesla.
“Core Lithium is thrilled to have reached this agreement with Tesla and look forward to further growing this relationship in the years to come,” he said.
“Subject to execution of a definitive agreement, Core’s supply to Tesla is scheduled to commence in 2H 2023 and will cease on the date that is four years after commencement of supply or until a total of up to 110,000 dry metric tonnes has been delivered.”
Community Grants Program
Recognising they have an important role to play in the Darwin region, Core Lithium aims to deliver mutual benefits to the local community.
Core Lithium supports inclusive, grassroots, community-led activities that provide benefits and create opportunities across education, training, the environment, sport and recreation, health and wellbeing, innovation and arts and culture.
Organisations, local clubs and community groups in Darwin, Berry Springs, Tumbling Waters, Belyuen, Wagait Beach/Mandorah, Dundee Beach and Palmerston are invited to apply for funding through the program.
Twice a year, applications for the community grants program are open with grants ranging from $100 to $2500.
Future Operations
According to Core, a longer-term objective is to assess and explore the potential of adding downstream processing opportunities in the Northern Territory to accommodate Finniss.
Core is considering the downstream potential given the project’s collaboration with the adjoining Middle-Arm industrial infrastructure, the alignment with Australia’s modern manufacturing strategy and the rapid expansion of global lithium-ion battery supply chains.