Australia's Core Lithium has announced the completion of a comprehensive restart study for its Finniss Lithium Project, showcasing significant cost reductions and operational improvements in its FY2025 report. This strategic repositioning aims to transform the Finniss project into a low-cost operating asset with a mine life of 20 years.
By optimising mining methods, acquiring key infrastructure, and upgrading the processing plant, the company achieved major improvements: a 40% reduction in mining costs and a 33% drop in processing costs. This shift is expected to restore the Finniss project's cost competitiveness among global spodumene producers.
Key financial and operational enhancements include:
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Reduced Capital Expenditure: Pre-production capital expenditure requirements fell by 29%, enhancing the project's financial attractiveness. The company expects unit operating costs to range between AU$690-$785 per tonne on an FOB SC6 equivalent basis, excluding royalties.
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Infrastructure Ownership: Core Lithium secured full ownership of all site infrastructure through strategic acquisitions, including the crushing circuit for AU$19.5 million. This move eliminates third-party contracts and operational dependencies.
Resource and Reserve Growth
The restart study increased ore reserves by 16%, providing a solid foundation for the first decade of operations. Key updates include:
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The ore reserve at Grants doubled to 1.15 million tonnes at 1.31% lithium oxide, following the transition from open pit to underground mining methods.
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BP33 ore reserves grew by 7% to 9.29 million tonnes at 1.31% lithium oxide after updating modifying factors.
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Total Finniss ore reserves reached 15.2 million tonnes at 1.26% lithium oxide with the addition of Carlton reserves.
The restart plan focuses on underground mining methods suited to the high-grade, steeply dipping ore bodies, which significantly reduces waste movements and enables superior feed quality control.
Financial and Safety Performance
Core Lithium maintained a strong financial position:
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Cash Reserves: Held AU$23.5 million in cash with no debt at year-end.
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Strategic Payments: Allocated AU$10 million for the crushing circuit acquisition and AU$3.1 million to terminate the offtake agreement with Yahua.
The company also maintained exemplary safety and environmental performance, recording zero lost time injuries and no license exceedances throughout the care and maintenance period.
With global energy transition driving long-term demand for lithium, Core Lithium's strategic repositioning of the Finniss project places it in a favourable position for the next market recovery. The project's 10.7 million tonnes of ore reserves and 48.5 million tonnes of mineral resources, combined with its infrastructure advantage near the Port of Darwin, create favourable conditions for its future restart.
