Core Lithium Ltd has awarded a three-year contract to Dev Mining Services Pty Ltd, a subsidiary of Develop Global Limited, for underground mining services at the company’s BP33 deposit, in the Northern Territory of Australia.
The contract includes an option for a two-year extension by agreement.
The BP33 deposit underpins the company’s Finniss lithium operation, providing a long-life, low-cost underground production base with more than 10 years of mine life and significant future exploration upside.
The contract award follows a competitive tender process focused on reducing project execution risk and selecting a contractor with the balance sheet and technical capability to support Core’s BP33 delivery objectives, Core says. Develop demonstrated strong underground mining capability, including relevant experience in comparable geological conditions, a mature understanding of geotechnical risk and the practical application of development methodologies suited to anticipated ground conditions. This technical capability, supported by a solution-led approach to execution, provides Core with confidence in the safe and effective delivery of the BP33 underground development.
The scope of work under the circa-A$274 million ($198 million) contract includes drill & blast, load & haul, decline development, production and ground support works associated with underground mining activities at BP33. Works will be completed under a standard fixed and variable schedule of rates, with lump sum components for mobilisation and establishment of operations. The contract has been structured to provide Core with greater operational and production flexibility and to share risk related to delivery and productivity.
The award of the underground contract is another significant milestone for the Finniss project, marking the commencement of development at BP33, Core says.
Under the company’s mine plan, BP33 is expected to contribute 88% of ore feed in the first 10 years of operation. Mineralisation at BP33 is hosted within a large, sub-vertical pegmatite body, 290 m in strike length and up to 30 m in true width. There is a very strong, steep southerly plunge component with a depth extent currently more than 800 m. These characteristics make BP33 well suited for highly productive, low cost, long hole open stoping mining methods, according to Core. Dual level access to the ore body from the decline will allow flexibility in stope sequencing.
BP33 production will be a significant contributor to Finniss as a lower cost, long-life, brownfield lithium operation with a shorter path to nameplate production of 214,000 t/y and reduced execution complexity, it says. Box cut and infrastructure site works are being undertaken at BP33 concurrently with the Grants open-pit activities. Dewatering was completed in March, immediately followed by box cut remediation and site civil works, in preparation for the commencement of underground decline.
BP33 development will progress in parallel with Grants production, supporting a staged ramp up and early cash generation at Finniss. Procurement of key long-lead items has commenced, along with mobilisation activities, with targeted completion for June 2026. All conditions precedent under the contract have been satisfied, with the decline works expected to commence in July 2026.
Core’s Managing Director, Paul Brown, said: “The award of the BP33 underground mining contract is a major milestone in the development of Finniss and a strong endorsement of the quality of the project. BP33 is expected to deliver the majority of ore feed over the first 10 years of operation and is a key driver of Finniss’ significantly improved cost profile and economics.
“We have maintained a clear focus on project execution, risk management and delivery of the project economics. The award to Develop reflects the strength of their technical capability, underground mining experience, understanding of the BP33 ground conditions and alignment with Core’s productivity and delivery targets.
“Considerable progress has been made since the final investment decision and funding package for Finniss were announced in mid-March, with activity advancing at Grants, sales completed from our concentrate and fines stockpiles, and the reactivation of our logistics chains. This progress demonstrates Core’s commitment to disciplined and efficient execution of the staged plan for Finniss, which is designed to reduce risk and capital requirements while delivering early cash flow.
“We remain on schedule, with first spodumene concentrate targeted for the December quarter 2026, BP33 first ore expected in mid-2027 and ramp up to nameplate production by mid-2028.”
Commenting on the contract award, Develop’s Managing Director Bill Beament, added: “We are delighted to be working with Core Lithium on this exceptional project. The combination of this long-life, high-quality orebody with Develop’s first-class underground mining team creates a strong foundation for an extremely rewarding partnership.
“Core has set out its key commercial and technical goals and strategy at Finniss and we believe Develop’s experienced team is ideally placed to help ensure these objectives are met.”
Develop says it will be reallocating some of the resources it had at the Bellevue Gold Mine to BP33 as part of the mobilisation process. The company separately advised that work was now underway as part of its recently awarded five-year contract at OceanaGold’s Waihi North project in New Zealand.
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