Core Lithium (ASX: CXO) is making solid progress toward restarting operations at its Finniss Lithium Project in the NT, with its Restart Study on track to wrap up in the June quarter of 2025. The company says early findings suggest significant opportunities to boost productivity and cut operating costs.
Key to this transition has been the clean break from legacy operations — Core has now terminated all remaining contracts from the site’s previous operating phase. That move hands the company 100% ownership of site infrastructure, including the crushing and processing facilities. It’s a strategic reset designed to streamline future operations under a new model that’s expected to be more efficient and cost-effective.
BP33 at the centre of restart plans
The restart plan focuses heavily on BP33, Core’s high-grade, sub-vertical pegmatite deposit. With 8.7Mt at 1.38% Li₂O in reserves, BP33 is shaping up to be the centrepiece of any future restart. The orebody’s geometry makes it a strong candidate for longitudinal open stoping underground mining — a method that Core believes will help reduce costs while lifting productivity.
Core has been working with a team of independent consultants to update the mine plan and identify further improvements. Metallurgical studies also point to gains — there’s potential to improve recovery and yield at the DMS plant without needing to add a flotation circuit, which would’ve meant extra capital and complexity.
Contract terminations pave the way for leaner future
As part of the transition, Core has agreed to pay $19.5 million over four months to settle and acquire key assets from its former operating contractors. The assets will be acquired on an “as is, where is” basis and the company says the outlay is well within its current cash reserves.
Ending these contracts is more than a financial clean-up — it gives Core the flexibility to implement a revised operating model aligned with today’s more cautious lithium landscape. The company says the moves should reduce care and maintenance costs immediately, and lead to lower operating costs once mining resumes.
What’s next?
While there’s no final restart decision just yet, Core says it will wait for the full study results, assess market conditions, and then make a Final Investment Decision subject to Board approval. With infrastructure in place, a strong orebody, and a leaner setup emerging, Core looks to be positioning itself well for a return to production — when the time is right.
