Finniss Lithium Mine Official Opening

Core Lithium has announced the official opening of the Finniss Lithium Mine, the Northern Territory’s first lithium mine in production and Australia’s only lithium mine outside of Western Australia.

Core Lithium owns 100% of the Finniss Lithium Project, located just south of Darwin Port in the Northern Territory. Finniss hosts JORC 2012 compliant Mineral Resources of 15 million tonnes (Mt) at 1.3% lithium oxide (Li20).

The flagship Finniss Project lies within one of the most prospective areas for lithium in the NT - the Bynoe Pegmatite Field - and covers over 500km2 of granted tenements.

The Finniss Project has substantial infrastructure advantages; being close to grid power, gas and rail and only 88km trucking distance by sealed road to Darwin Port – Australia’s nearest port to Asia.

In mid-2021, Core completed a Definitive Feasibility Study (DFS) on Finniss, the details of which can be found in the ‘Definitive Feasibility Study’ section below.

Subject to continued favourable market conditions for lithium, financing and a final investment decision, Core expects to commence construction at Finniss before the end of 2021, with first production anticipated before the end of 2022.

In early 2020, the Northern Territory Government formally approved Core’s Mine Management Plan for the Finniss Project, the final regulatory hurdle required for the commencement of site activities.

This was closely followed by the receipt of an offer from the NT Government of a 25-year mineral lease for the BP33 Deposit, in addition to the receipt of a mineral lease for Grants which was awarded to Core in 2019.

In addition, the Northern Territory Environmental Protection Authority has confirmed that Core’s notification of alteration to extend the operation of the Grants open pit mine and proposed 1mtpa dense media separation (DMS) process plant at Finniss to seven years would not be subject to a public environment report or environmental impact statement, further clearing the way for construction and subject operation at Finniss to commence.

In March 2021, Core met a major milestone when the Federal Government awarded Major Project Status (MPS) for the Finniss Project. This is considered the Commonwealth’s recognition of the strategic significance of a project to Australia, and provides Core with extra support from the Major Projects Facilitation

Agency including a single-entry point for Australian Government approvals, project support and coordination with state and territory approvals.

Core has also partnered with global environmental and sustainability consultants ERM Group to provide a carbon footprint evaluation, life cycle analysis and sustainability assessment for the Finniss Project.

A greenhouse gas assessment of the initial seven-year mine life of Finniss identified that the Project aligns well when compared on an emission intensity level (total emissions per tonne of product produced) to published emission intensities for other spodumene concentrate production facilities in Western Australia.

In mid-2021, Core released a DFS for the Finniss Project, marking a major milestone in its goal to become Australia’s next major lithium producer by the end of 2022.

The study highlighted an average production of 173ktpa of high-quality lithium concentrate at a C1 opex of US$364 per tonne, and at a low start-up capital cost of A$89 million thanks to the incorporation of a simple DMS processing plant in the Project’s design.

This will enable the Company to produce high-quality, coarse concentrate using simple gravity DMS processing.

Based on the development of the Ore Reserves within the Grants and BP33 deposits, standard open pit mining operations and the construction of the simple 1Mtpa DMS process plant, Finniss will have capacity to produce up to 197ktpa of lithium concentrate with robust margins.

With a modest pre-production capex of $89 million, strong cash flows and a quick capital payback period of two years, the Finniss Project is on track to become one of the lowest capital intensity lithium projects in Australia.

This will ensure Core is well placed for a first-mover advantage in the Bynoe Pegmatite Field, while laying a solid foundation for the building of a long-term lithium production hub.

Core has established offtake arrangements with various parties and is also in the process of finalising further agreements with other highly interested parties.

China’s Sichuan Yahua Industrial Group (Yahua) has committed to 75,000tpa of product from Finniss over an initial four-year period, with extension options attached.

It is worth noting that in early 2021, Yahua signed a deal to supply battery-grade lithium hydroxide to US EV manufacturer Tesla over the next five years. It is expected that the Finniss Project will be a key source of the raw material for Yahua to meet that commitment.

Core also holds a non-binding Memorandum of Understanding (MOU) with Geneva-based Transamine Trading for the supply of 50,000tpa of spodumene concentrate from Finniss over a five-year period.

A longer-term objective of Core Lithium is to assess and explore the potential of adding downstream processing opportunities in the Northern Territory to accommodate the Finniss Project.

Core is considering the downstream value potential given the Project’s synergies with the adjacent Middle-Arm industrial infrastructure near Darwin, as well as the alignment with Australia’s Modern Manufacturing strategy, and the rapid expansion of global lithium-ion battery (LIB) supply chains to meet the demands of the ever-increasing EV and renewable energy markets.