PERTH (miningweekly.com) – Construction of the Finniss lithium project, in the Northern Territory, has started.
ASX-listed Core Lithium on Tuesday reported that site construction and establishment works are now underway following heritage and vegetation management, while road access works, site establishment and construction of communications, fuel and water supply infrastructure have commenced.
Project early works on site at Grants have started in preparation for the commencement of mining activity later this year, followed by dense media separation (DMS) process plant construction which will start in March 2022.
Commissioning of the DMS plant and the first production of lithium concentrate from Finniss are scheduled for the fourth quarter of 2022.
“At a time when Australia is firmly focused on both the generation of renewable resources and future job prospects for the regions, Core is incredibly proud of this milestone we’ve reached in the Northern Territory today,” said Core MD Stephen Biggins.
“This next phase of the company will be transformational, and we are excited to see construction milestones met at Finniss over the coming 12 months, ahead of first production before the end of 2022.
“We also look forward to engaging the local workforce in the Northern Territory, with more than 84% of available jobs at Finniss already appointed to locals. We’re excited to see the Northern Territory play an important role in meeting the ever-rising demand of renewable energy sources.”
Some 250 jobs will be created during construction and operations of the Finniss project.
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 project has gained all Northern Territory government and environmental approvals and is fully funded following the successful raising of A$150-million from institutional investors and shareholders, including A$34-million placement to Ganfeng alongside a four-year offtake agreement.
The Northern Territory government on Tuesday welcomed the start of construction, with Chief Minister Michael Gunner saying the territory was entering a wave of new mining.
“This project will provide hundreds of world-class mining jobs for residents in Darwin, Palmerston and the Rural Area, which will also support local business and create new opportunities for Territorians.”
Mining and Industry Minister Nicole Manison noted that the first three years of the project were expected to inject more than half-a-billion dollars into the local economy, and that the Finniss project had the potential to position the Northern Territory as a strategically important jurisdiction for the production, processing and manufacturing of critical minerals for the global market.