Core Lithium has secured a $274 million contract with Develop Global to advance underground mining at the BP33 deposit, a cornerstone of its Finniss Lithium Operation, aiming for first ore by mid-2027 and full production in 2028.
- Three-year $274 million underground mining contract awarded
- BP33 to supply 88% of ore feed in first decade
- Mobilisation set for June 2026, mining starts July
- Contract structure balances fixed and variable rates
- Supports Finniss lithium concentrate production targets
Major Contract Secures BP33 Underground Development
Core Lithium Ltd (ASX:CXO) has taken a decisive step in its Finniss Lithium Operation by awarding a $274 million underground mining contract to Develop Global Ltd (ASX:DVP) for the BP33 deposit. This three-year agreement, with an option to extend for two more years, positions BP33 as the linchpin of Core’s lithium supply, expected to contribute 88% of ore feed over the first ten years of operation.
The contract follows a rigorous tender process prioritising technical expertise and risk mitigation. Develop’s proven track record in underground mining under similar geological conditions, coupled with its understanding of geotechnical risks and development methodologies, tipped the scales in its favour. The contract’s blend of fixed and variable pricing components aims to provide Core with operational flexibility and shared delivery risk, reflecting a nuanced approach to managing execution challenges.
BP33’s Strategic Role in Finniss Production
BP33 is central to Finniss’s long-life, low-cost production strategy. The deposit’s substantial pegmatite body extends over 290 metres in strike length and plunges steeply southwards beyond 800 metres depth, making it well-suited for Long Hole Open Stoping mining methods. Dual access levels from the decline will enable flexible stope sequencing, underpinning productivity and cost efficiency.
Development at BP33 will run in parallel with ongoing open pit mining at the Grants deposit, supporting a staged ramp-up designed to generate early cash flow. Dewatering and preparatory civil works at BP33 are already underway, with mobilisation targeted for June 2026 and underground decline development expected to commence in July. This timeline aligns with Core’s broader schedule aiming for first spodumene concentrate production by December 2026 and ramp-up to nameplate production of 214ktpa by mid-2028, as outlined in the company’s FID Approved and Funding Secured for Finniss Restart announcement.
Contract Details and Operational Implications
The scope of Develop’s work includes drill and blast, load and haul, decline development, production, and ground support. The contract is structured to balance fixed lump sum elements for mobilisation with variable schedule rates, a design that offers Core both predictability and adaptability as mining conditions evolve.
Core’s Managing Director Paul Brown underscored the contract’s importance, describing it as a “major milestone” that validates BP33’s role in improving Finniss’s cost profile. Brown highlighted the alignment between Core and Develop on technical and productivity targets, reinforcing confidence in delivering the project safely and effectively.
This contract award builds on recent funding milestones, including the completion of a substantial equity tranche and shareholder approvals that have fortified Core’s financial position for Finniss’s development. The company’s Core Lithium Raises A$67M Equity Tranche to Advance Finniss Project and Core Lithium Secures A$290 Million to Restart Finniss with Mining Underway announcements detail this financial momentum supporting operational progress.
Develop Global’s Perspective on Partnership
Develop’s Managing Director Bill Beament expressed enthusiasm about the partnership, citing the combination of BP33’s high-quality orebody and Develop’s underground mining expertise as a strong foundation for success. The company’s experience is expected to be instrumental in meeting Core’s commercial and technical objectives at Finniss.
Bottom Line?
Core Lithium’s BP33 contract award signals a critical phase in Finniss’s underground mine development, with execution risk mitigated by a carefully structured agreement and an experienced contractor.
Questions in the middle?
- How will Develop’s execution performance impact Core’s production ramp-up timeline?
- What exploration upside exists beyond the current BP33 resource footprint?
- How might fluctuating lithium market conditions affect operational flexibility under this contract?