Core Lithium’s Finniss Project Unveils 20-Year Underground Revival with Major Cost Cuts
Core Lithium has released a comprehensive Restart Study for its Finniss Lithium Project, outlining a transition to fully underground mining that extends the mine life to 20 years while slashing operating costs and boosting production capacity.
- Transition to 100% underground mining extends mine life to 20 years
- Updated Ore Reserve increased 15.9% to 10.73Mt at 1.29% lithium oxide
- Mining costs reduced by 40%, processing costs cut by 33%
- Processing capacity increased to 1.2 million tonnes per annum
- Forecast free cash flow of $1.2 billion with strong local government support
A New Chapter for Finniss
Core Lithium Ltd has unveiled a transformative Restart Study for its Finniss Lithium Project in Australia’s Northern Territory, signaling a strategic pivot to fully underground mining. This shift not only extends the mine’s operational life to an impressive 20 years but also promises significant cost efficiencies and production enhancements.
The study, released in May 2025, updates the project’s Ore Reserve to 10.73 million tonnes at 1.29% lithium oxide, marking a 15.9% increase. This robust reserve base underpins a low-cost, scalable operation designed to produce high-quality spodumene concentrate, a critical raw material for lithium-ion batteries.
Driving Down Costs and Boosting Output
Core Lithium’s operational overhaul delivers a 40% reduction in underground mining costs, bringing them down to between $63 and $72 per tonne. Processing costs have also been trimmed by a third, now ranging from $40 to $46 per tonne. These efficiencies are complemented by a 20% increase in processing capacity to 1.2 million tonnes per annum, achieved through plant optimizations and infrastructure upgrades.
The company forecasts unit operating costs on a free-on-board basis between $690 and $785 per tonne of spodumene concentrate, positioning Finniss competitively within the Australian lithium sector. The study projects a free cash flow generation of approximately $1.2 billion, highlighting the project’s strong financial potential.
Strategic Advantages and Sustainability Commitments
Finniss benefits from its proximity to the Port of Darwin, facilitating efficient export logistics without the need for infrastructure upgrades. The project enjoys strong support from both Northern Territory and Federal Governments, underscored by a proven track record of environmental compliance and community engagement.
Core Lithium emphasizes sustainability, with underground mining reducing surface footprint and waste, and initiatives to create over 400 direct and indirect jobs locally. The company also plans to leverage local businesses and provide upskilling opportunities, reinforcing its commitment to the region’s economic development.
Funding and Future Outlook
With a pre-production capital estimate of $175 to $200 million, Core Lithium is actively pursuing funding options aimed at minimizing shareholder dilution. The company’s $30 million cash balance supports near-term working capital and advancement of the project’s front-end engineering design.
Looking ahead, exploration targets such as Blackbeard and BP33 Deeps offer potential to extend mine life and increase production further. The study’s inclusion of 12.9% inferred mineral resources introduces some uncertainty, but also upside potential pending further drilling and resource conversion.
Bottom Line?
Core Lithium’s Finniss Restart Study sets the stage for a long-life, low-cost lithium operation, but securing funding and converting exploration upside remain critical next steps.
Questions in the middle?
- How will Core Lithium secure the necessary funding without significant shareholder dilution?
- What is the timeline and likelihood for converting inferred resources into proven reserves?
- How might global lithium market fluctuations impact the project’s projected free cash flow?
