Develop Awards A$70M Mining Contract as Pioneer Dome Targets December Lithium Sales

Major Mining Contract Secures Pioneer Dome Timeline

Develop Global Limited (ASX:DVP) has taken a decisive step towards production at its Pioneer Dome lithium project in Western Australia by awarding a A$70 million open pit mining and crushing contract to Kalgoorlie-based MLG Oz Limited (ASX:MLG). This contract covers drill and blast, load and haul, crushing and screening, and supporting surface activities, with operations scheduled to start in August 2026 and crushing from September.

The deal positions Pioneer Dome firmly on track for its first lithium sales in the December quarter of this year. It follows Develop’s Final Investment Decision earlier in June and the execution of a binding offtake agreement with commodities giant Trafigura, which commits to purchasing a minimum of 750,000 tonnes of direct shipping ore (DSO) lithium from the project.

Capital-Light Project Backed by Strong Market Fundamentals

Pioneer Dome is designed as a capital-light, fast-to-market DSO operation, with pre-production capital costs estimated between A$35 million and A$40 million. The project benefits from simple open pit mining and processing, which should support robust cashflow generation amid current lithium prices hovering between A$400 and A$500 per tonne for 1.2% Li2O DSO.

The project is fully funded through a US$400 million financing and offtake package secured with Trafigura earlier this month, which also includes Develop’s Sulphur Springs copper-zinc project. Trafigura’s offtake terms feature a time and volume-linked floor price plus pricing optionality, providing Develop with a degree of revenue certainty in a volatile lithium market.

Drilling Results Highlight High-Grade Lithium Potential

Recent assay results from Develop’s 20,000-metre drilling program at Pioneer Dome have reinforced the project’s resource quality and potential upside. To date, 123 of 234 holes have been analysed, revealing consistently thick zones of lithium mineralisation averaging 15.8 metres at 1.45% Li2O true width within the proposed open pit and underground mine areas.

Notable intersections include 32 metres at 1.71% Li2O and 51 ppm Ta2O5 from 79 metres, and 29 metres at 1.70% Li2O and 53 ppm Ta2O5 from 66 metres. These better-than-expected grades suggest the possibility of increasing the resource grade in the upcoming updated mineral resource estimate and grade control model, scheduled for completion in the September quarter.

Strategic Contractor Selection and Operational Readiness

MLG Oz was chosen after a competitive tender process prioritising execution risk reduction and operational capability. Its Kalgoorlie base, regional workforce, and experience with lithium crushing, most notably at Mineral Resources’ Bald Hill mine, were key factors in its selection. Develop plans to supplement MLG’s team with experienced production staff to ensure smooth ramp-up.

Managing Director Bill Beament emphasised the significance of this contract award, noting that with all major approvals, financing, and offtake agreements in place, Pioneer Dome is poised to capitalise on surging DSO lithium demand. He also highlighted the potential to extend operations underground, adding further optionality to the project’s development.