PERTH (miningweekly.com) – The board of ASX-listed Core Lithium has taken a final investment decision (FID) on the A$89-million Finniss project, in the Northern Territory.

The Finniss project will be the first lithium mine for the Northern Territory.

“The board’s support for Finniss’ development is the culmination of over five years of hard work to put together a low-risk, capital-efficient and high-margin lithium project that will deliver benefits for our shareholders, our employees, our partners and all our stakeholders,” said Core Lithium MD Stephen Biggins.

“FID places Core firmly at the front of the line of new global lithium production just at the right time as lithium demand and prices are increasing rapidly.

“The project and FID are underpinned by high-grade lithium deposits that have the potential to support long term lithium supply from northern Australia, quality lithium offtake partners and a highly engaged and supportive Northern Territory government. Finniss will become Australia’s next lithium producer.

A definitive feasibility study into the Stage 1 Finniss project, comprising an openpit operation and underground operation, estimated that the project would require an initial capital investment of A$89-million to support annual lithium production of 175 000 t/y from a one-million-tonne-a-year plant.

The study estimated a post-tax net present value of A$170-million and an internal rate of return of 47%, with a pay-back period of two years. Life-of-mine C1 operating costs have been estimated at $364/t of concentrate generating a life-of-mine operating margin of more than $370/t, assuming a life-of-mine average sales price of $743/t.

The project has gained all Northern Territory government approvals and is fully funded following the successful raising of A$116-million. In addition, Ganfeng has signed a four-year offtake agreement with Core and agreed to provide A$34-million in new equity, subject to Chinese government approvals.

Some 80% of Finniss’ initial output is covered under four-year offtake agreements with Ganfeng, one of the world’s largest lithium producers by production capacity, and Yahua, a key lithium supplier to Tesla.

Northern Territory Minister for Mining and Industry Nicole Manison has welcomed the FID, saying it was great news for the region.

“The first three years of this project are expected to inject more than half a billion dollars into the Northern Territory’s economy and create around 250 jobs for Territorians within an hour’s drive of Darwin.”

She noted that the development of the Finniss Lithium Project has the potential to position the Northern Territory as a strategically important jurisdiction for the production, processing and manufacturing of critical minerals to the global market. 

Project execution will start immediately, and commissioning of the dense-media separation plant and first production of lithium concentrate is scheduled for the fourth quarter of next year.