Core Lithium is looking at alternative mining solutions for the Grants open pit, should it recommence mining in the future.
In early January, the lithium miner suspended mining operations at the Grants open pit, which is the starter operation at the Finniss lithium operation in the Northern Territory.
The company said this approach would reduce the cash cost of the Finniss operation, generate revenue from stockpiles and provide an opportunity to recommence mining as market conditions improve. Core Lithium also suspended BP33 early works.
Due to the suspensions and weakened lithium prices, Core Lithium and its mining contractor, Lucas Total Contract Solutions, have mutually agreed to terminate the Finniss mining services agreement.
“In these difficult market conditions, this gives Lucas and its employees more certainty,” Core Lithium chief executive officer Gareth Manderson said.
“We sincerely thank (Lucas Total Contract Solutions) managing director Ben Lucas and his workforce for their hard work as part of the team at Core.
“We have worked together to bring on the Northern Territory’s first lithium mining operation in a short period of time. I wish Lucas well for its future projects.”
Core Lithium said termination of the agreement will not adversely affect current Finniss operations.
While a final investment decision for BP33 won’t be made until market conditions improve, its feasibility study remains ongoing.
The company will continue processing ore stockpiles to produce spodumene concentrate for sale to customers until the middle of 2024.
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