Australian hard-rock lithium producer Core Lithium has terminated its mining services agreement with Lucas Total Contract Solutions at the Finniss operation, in the Northern Territory.
This follows an announcement in early January that the company is suspending the Grants openpit and that only ore stockpiles will be processed to produce spodumene concentrate.
The settlement deed provides for a cash payment of A$10-million to Lucas to cover demobilisation costs and settle claims, consumables and contractual charges incurred during suspension.
“We have reached an amicable agreement with our mining partner Lucas to terminate the mining agreement. In these difficult market conditions, this gives Lucas and its employees more certainty. Core will now look at alternatives for potential mining recommencement,” said Core CEO Gareth Manderson.
He tanked MD Ben Lucas and his Lucas Total workforce for their hard work in bringing on line the Northern Territory’s first lithium mining operation.