Core Lithium Ltd (ASX:CXO) has produced its first volumes of high quality spodumene concentrate from the Dense Media Separation (DMS) plant at the Finniss Lithium Operation in the Northern Territory.
The pay off has come just 15 months after CXO started construction on the DMS, which is now complete.
In that time, CXO hasn’t taken a backwards step and has established mining operations, constructed water management infrastructure, and built and commissioned the crushing facility.
Importantly, it advanced commissioning to the point where concentrate production could begin.
This will feed nicely into the already secured offtake from lithium industry leaders Ganfeng Lithium and Sichuan Yahua. Core will work closely with these key customers during the Finniss operations ramp up phase.
First Concentrate from the Finniss Lithium Mine.
CXO continues to hit key milestones
The safe commissioning of the DMS plant just another key milestone in Core Lithium’s development of the Finniss Lithium Mining Operations.
Finniss is now the first Australian lithium producing operation outside of Western Australia, with the DMS plant now producing high quality spodumene concentrate.
Export will occur once there is sufficient volume to be transported to the Darwin Port.
The only snag in CXO’s plans has been the weather.
Grants pit ore production was impacted by higher than average rainfalls in December across the Northern Territory and much of northern Australia, which led to the accumulation of a significant volume of water in the base of the stage one portion of the Grants pit.
Water impeded delivery of ore from the pit and consequent concentrate production. It meant part of the previously estimated concentrate production volume for FY 2023 will be delayed to FY 2024.
However, CXO is still looking forward and continues to hit its key aims.
Finniss Processing Facilities – Crushing and DMS Plants at night.
Production starts
CXO has begun production of commissioning concentrate from previously mined ore (Run-of-Mine (ROM) and crushed ore stockpiles).
The first lithium concentrate shipment will be produced from these stockpiles, with transport to the Darwin port expected by the end of April 2023.
The company will look to further produce concentrate from additional ore from future mining of the Grants pit: this is subject to ramp up of the new mine and the potential cruelty of mother nature.
However, CXO still expects that future concentrate production from the mine will happen by July 2023.
Final step before delivery
“Commissioning of the DMS plant represents the final step in the delivery of the Core’s first mining operation,” Core CEO Gareth Manderson said.
“The safe and successful construction of the Finniss mining facilities during a global pandemic and through two Northern Territory wet seasons is testament to the resilience and hard work of the Core employees and contract partners, including a number of local Darwin suppliers.
“I would like to acknowledge the support that Core has received from our shareholders, customers, suppliers, contractor partners, and the Federal and Northern Territory Governments. All have played key roles in the establishment of the first Australian lithium mining operations outside of Western Australia.
“The approach to establish a mining operation, and in parallel complete the exploration work required to support potential future operations, is a credit to the business and its people. This approach has enabled Core to rapidly move the business to a position where concentrate production has now commenced.
“With construction complete, our focus moves to safely completing commissioning of the concentrator, delivery of our first cargo and ramp-up of operations at Finniss that will deliver high-quality, reliable volumes of lithium concentrate into a favourable market.”