Core Lithium has signed a Mining Services Agreement with Lucas Total Contract Solutions for the provision of open pit mining and associated services at the Finniss Lithium Project, located near Darwin in the Northern Territory.
Lucas is engaged for the 3-year open pit mining services agreement for the Grants open pit, the first mine that will be developed at the Finniss Lithium project.
The scope of work covers the construction and mining of the Grants Open Pit Mine including clear and grub, topsoil management, pads, roads, dumps, dams, bunds and water controls and open pit mining (load and haul plus drill and blast).
The agreement follows the completion of a $91 million institutional placement and a $25 million share purchase plan, in conjunction with a $34 million equity investment subject to Chinese Government approvals and an offtake agreement with a subsidiary of Jiangxi Ganfeng Lithium Co., Ltd (Ganfeng) for 75,000 tonnes per annum of spodumene concentrate from the Finniss Project over 4 years.
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Core expects to ramp-up construction at the Finniss Project over the course of 2022, with first spodumene production anticipated in late 2022.
Core Lithium’s Managing Director Stephen Biggins said the company is pleased to progress Lucas from preferred contractor status to its inaugural mining contractor, representing a major step forward for Core as it moves towards first construction at the Finniss Lithium Project this year.
“With recent spodumene spot sales above US$2,000/t, Core is the only Australia focused, ASX-listed company forecast to join the ranks of new spodumene producers between now and the end of 2022 in a position to take advantage of these high prices.
“Advanced discussions with such a high-calibre and respected team such as Lucas with proven lithium mining experience has facilitated this step and we are looking forward to partnering with this key services provider to deliver Australia’s next significant new lithium mine.”