Core Lithium restarts Finniss lithium mine south of Darwin

Core Lithium has restarted mining at its Finniss project, nearly 90 kilometres south of Darwin, with hopes improved operating costs will strengthen its resistance to boom-bust commodity cycles.

The mine closed in 2024 as prices crashed, but the company announced restart plans earlier this year.

Blasting and excavation restarted in the open pit today.

Managing director Paul Brown said the restart was based on strong lithium prices at about $4,200 a tonne and Core's work to improve the operating cost of the mine.

"We don't speculate on the price forecast," he said.

"We're there to capitalise on what is a very good price at the moment … but I think, importantly, it is a very different cost base that we're able to produce this time around."

He said the mine would employ up to 300 people at full capacity and the open pit would operate for about 12 months.

The restart was paid for via an initial package worth $170 million and an intended $120 million equity raise.

This was combined with about $41 million in cash reserves and the sale of stockpiled lithium which was mined before the 2024 closure.

After skyrocketing in late 2022 the price of lithium spodumene concentrate, the type of lithium mined in Australia, dropped to about $1,460 per tonne in 2024.

Future underground mine

Analysts have told the Country Hour that strong lithium prices, and the mine's pre-existing equipment, meant a quick restart was possible.

Core has also awarded a $274 million contract to Develop Global to progress an underground mining component at the operation.

The company aims to start underground work in the coming months, with a forecast mine life of 10 years, which Mr Brown described as a "the premier asset".

"It's a lovely asset, it's got a beautiful ore body," he said.

The open pit component of the mine provides a more immediate source of lithium, supporting early revenue generation for Core.

Vital road damaged by rain

The NT saw widespread heavy rainfall in the most recent wet season, with many major roads damaged in the deluge.

Core relies on Cox Peninsula Road to transport lithium to Darwin port, and Mr Brown said a coordinated effort on road repair was required to ensure minimal impact.

"The whole Territory's had a pretty big wet season so there's obviously been some logistical challenges right across the board," he said.

"I think we've got good engagement with the local council and certainly the broader government."