Advanced Northern Territory (NT) lithium developer Core Lithium Ltd (ASX: CXO) (Core) is pleased to announce the award of the Engineering, Design and Construction (EPC) contract for the Finniss Lithium Project (Project) to Perth-based Primero Group (Primero).
HIGHLIGHTS
- Core has awarded Primero Group the EPC contract to construct the Finniss Dense Media Separation (DMS) Plant in the Northern Territory.
- Project execution to start immediately post FID, with site establishment and mining activity commencing during Q4 2021, and on-site process plant construction activities scheduled to commence in March 2022.
- Commissioning of the DMS plant and first production of lithium concentrate scheduled for Q4 2022.
The shovel-ready Finniss Project lies within 25 km of port, power station, gas, rail and one hour by sealed road to workforce accommodated in Darwin and, importantly, to Darwin Port – Australia’s nearest port to Asia.
The Project has gained all NT government approvals and is fully funded following the successful raising of $91 million from institutional investors and $25 million from eligible Core shareholders via a Share Purchase Plan. In addition, Ganfeng has signed a 4-year offtake agreement with Core and agreed to provide A$34 million in new equity, subject to Chinese Government approvals.
Core and Primero have worked closely together since 2019 to deliver the Definitive Feasibility Study for the Finniss Lithium Project (see ASX announcement “Stage 1 DFS and Updated Ore Reserves” on 26 July 2021).
Primero is a vertically integrated engineering group that has considerable expertise in delivering large scale construction contracts in the lithium sector and across the minerals, energy and non-process infrastructure sectors in Australia and around the world.
Primero brings a highly professional team of engineering, drafting and management personnel to the Project to ensure the DMS plant performs as prescribed. Core seeks to benefit from Primero’s multi-disciplinary construction approach, as they specialise in supply chain control, optimising capital efficiency and value unlocking.
Primero will be responsible for:
- Project management;
- Engineering and detailed design;
- Equipment and materials procurement;
- DMS plant construction;
- Quality assurance and construction verification, and
- Ore commissioning on receipt of first ore.
Core Lithium’s Managing Director Stephen Biggins said:
“Today’s announcement represents the final stage of the Finniss study phase and the first step to unlocking the value of the Finniss lithium resource in the NT.
“We are excited to have Primero on board as an experienced and successful lithium EPC contractor and look forward to working together, delivering the DMS plant, creating an exciting opportunity for the people of the NT.
“As we have stated to the market, construction of the Finniss Project is on schedule to commence before the end of 2021, with Primero ready to hit the ground running immediately with initial work, in the lead-up to the commencement of process plant building activities in March next year.
“2022 is shaping up to be a defining year for Core Lithium.”
View the full Core announcement
View the full NRW – Primero announcement
