Core does FID at Finniss
PERTH (miningweekly.com) – The board of directors of ASX-listed Core Lithium has made 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 in the Northern Territory.
“The board’s support for Finniss’s development is the culmination of more than five years of hard work to build a low-risk, capital-efficient, high-margin lithium project that will bring benefits to our shareholders. , our employees, our partners and all our stakeholders, ”said Core Lithium MD Stephen Biggins.
“IDF places Core firmly at the forefront of new global lithium production at just the right time as lithium demand and prices increase rapidly.
“The project and the FID are supported by high quality lithium deposits that have the potential to support the long term lithium supply of northern Australia, quality lithium collection partners and a Territorial government.” of the North very committed and united. Finniss will become Australia’s next lithium producer.
A definitive feasibility study for Phase 1 of the Finniss project, comprising surface mining and underground mining, estimated that the project would require an initial investment of A $ 89 million to support annual lithium production of 175,000 t / a from one-ton plant per year.
The study estimated an after-tax net present value of A $ 170 million and an internal rate of return of 47%, with a two-year payback period. The life of the C1 mine operating costs were estimated at $ 364 / t of concentrate generating an operating margin over the life of mine of over $ 370 / t, assuming a price average sale over the life of the mine of $ 743 / t.
The project has obtained all approvals from the Government of the Northern Territory and is fully funded following the successful raising of A $ 116 million. In addition, Ganfeng signed a four-year kidnapping agreement with Core and agreed to provide AU $ 34 million in new equity, subject to Chinese government approvals.
About 80% of Finniss’ initial production is covered by four-year offtake agreements with Ganfeng, one of the world’s largest lithium producers in terms of production capacity, and Yahua, a key lithium supplier to Tesla. .
Minister of Mines and Industry of the Northern Territory Nicole Manon praised FID, saying this 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 economy and create approximately 250 jobs for the Territories 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 manufacture of essential minerals in the global market.
Project execution will begin immediately and commissioning of the dense media separation plant and the first production of lithium concentrate are scheduled for the fourth quarter of next year.