Core Lithium (ASX: CXO) has taken a major step in restarting the Finniss Lithium Operation in Australia’s Northern Territory. The company has awarded an A$274 million underground mining contract for its Core Lithium BP33 deposit, setting up one of Australia’s most-watched lithium restarts.
Core Lithium Awards A$274M Contract for BP33 Underground Mine
Contract Details and Scope of Work
Core Lithium has awarded a three-year contract to Dev Mining Services Pty Ltd, a subsidiary of Develop Global Limited (ASX: DVP), for underground mining services at the BP33 deposit in the Northern Territory. The deal was struck after a competitive tender process focused on reducing execution risk.
Work under the contract covers drilling, blasting, loading, hauling, decline development, ore production, and ground support at BP33. Core has structured the contract to ensure flexibility and shared risk around operations and productivity. The contract also carries an option to extend by two additional years by mutual agreement.
Why Dev Mining Services Won the Tender
Core Lithium identified three primary selection criteria: alignment in operational methodology, commercial structure compatibility, and the depth and experience of the proposed project team. Cost alone was not the deciding factor.
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. Develop also said it would reallocate resources from the Bellevue Gold Mine to BP33 as part of mobilisation.
BP33 Deposit — What Makes It Central to Finniss
Geology and Mine Life
Core Lithium BP33 Mineralisation The mineralisation at Core Lithium BP33 is within a massive sub-vertical pegmatite body with dimensions of 290 metres length, up to 30 metres width and greater than 800 metres depth and plunges steeply to the south. The geometry is favourable for high-volume, low-cost, long-hole open stoping.
Dual level access to the ore body from the decline will allow flexibility in stope sequencing. Mining crews can extract ore from two elevation intervals at once, cutting bottlenecks and giving operational flexibility when managing ground conditions or equipment.
BP33’s Role in the Finniss Production Plan
| Metric | Detail |
| Contract Value | A$274 million (~USD $198.5 million) |
| Primary Term | 3 years |
| Extension Option | Up to 2 additional years |
| Contractor | Dev Mining Services (Develop Global subsidiary) |
| Mobilisation Start | June 2026 |
| Underground Decline Start | July 2026 |
| First BP33 Ore | Mid-2027 |
| Nameplate Production Target | Mid-2028 (214,000 t/y) |
| BP33 Ore Feed Share | 88% of total feed in first 10 years |
| Projected Mine Life | 10+ years |
BP33 is a key deposit within Core’s Finniss Lithium Operation in the Northern Territory. The company said BP33 underpins a lower-cost, long-life production base, with more than 10 years of mine life and further exploration upside. Similar to recent exploration-focused developments across the lithium sector, such as Askari Metals identifying seven pegmatite targets at its Uis project, exploration success remains a key driver of future resource growth.
The Grants deposit is expected to deliver approximately 784,000 tonnes of ore using existing infrastructure, providing early spodumene concentrate shipments ahead of the full BP33 ramp-up. Both deposits will run concurrently, supporting staged production growth.
Site Progress and Key Milestones on the Path to Production
Ground Preparation Already Complete
Progress at the Core Lithium BP33 site has been moving ahead briskly through the early parts of 2026. Dewatering of the BP33 site, a process required to remove accumulated water since its care and maintenance was completed in March 2026. Subsequently in April 2026 the underground mining contract was awarded to Dev Mining Services upon conclusion of the competitive tender process.
Box cut and infrastructure site works at BP33 are proceeding alongside open-pit activities at the Grants site. Dewatering concluded in March, followed by box cut remediation and site civil works to prepare for the start of the underground decline. Procurement of key long-lead items has also started.
Production Timeline
Core Lithium remains 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.
Core Lithium Managing Director Paul Brown confirmed the schedule in the contract award announcement:
“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.”
Develop Global Managing Director Bill Beament also commented on the partnership:
“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.”
Glencore Sales Generate A$28.5M as Finniss Liquidity Builds
Two Fines Sales Completed in 2026
Alongside the Core Lithium BP33 underground contract, the company has been converting stockpiled material into cash. Core Lithium entered a binding sale and purchase agreement with Glencore International AG for the sale of 25,000 metric tonnes of lithium fines from the Finniss lithium operation. The transaction is the second sale from the Finniss lithium fines stockpile, following Core’s April 2026 announcement of an initial sale to Glencore.
The second fines sale builds on Core’s February 2026 sale of its spodumene concentrate stockpile and the initial fines sale announced in April 2026. Price for the transaction will reflect spot lithium fines prices when the sale occurs, on a basis of approximately US$270 per tonne CIF for an indicative grade for LiO content and will be shipped via Port of Darwin in June 2026.
Liquidity Position and Remaining Stockpile
Combined with an earlier spodumene concentrate stockpile sale of approximately 5,100 tonnes at about US$2,023 per tonne, Core Lithium has now secured approximately A$28.5 million in total 2026 lithium sales revenue from stockpile conversion. That cash is incremental to the funded restart.
- Total 2026 lithium sales revenue: approximately A$28.5 million
- First Glencore fines sale (April 2026): ~20,000 tonnes at ~US$290/t
- Second Glencore fines sale (June 2026): 25,000 tonnes at ~US$270/t
- Remaining fines stockpile: approximately 30,000 tonnes
- Spodumene concentrate sale (February 2026): ~5,100 tonnes at ~US$2,023/t
Core said it continues to explore pathways for the sale of the remaining approximate 30,000-tonne fines stockpile. Paul Brown noted the sales further strengthen the company’s liquidity as it ramps up operations at Finniss.
Fully Funded Restart and Glencore’s Broader Role
Core Lithium’s restart strategy crystallised in March 2026 when the board made a Final Investment Decision backed by a fully funded capital package of approximately A$307 million. The funding comprises an A$120 million institutional equity placement plus share purchase plan, alongside a US$120 million strategic funding package from Glencore, InfraVia and Nebari that includes convertible notes and debt facilities.
Glencore’s involvement extends beyond funding to include US$20 million in convertible notes and a marketing agreement that provides Core Lithium access to the trading house’s spodumene customer base while preserving flexibility to sign additional offtake agreements.
Key Takeaways From Core Lithium’s BP33 Progress
- Core Lithium BP33 underground contract awarded to Dev Mining Services for A$274 million
- Underground decline development at Core Lithium BP33 scheduled to begin July 2026
- First spodumene concentrate targeted for December quarter 2026
- First Core Lithium BP33 ore expected mid-2027; nameplate production by mid-2028
- BP33 projected to supply 88% of Finniss ore feed across the first decade
- A$28.5 million raised from Glencore stockpile sales in 2026 to date
- Fully funded restart backed by a A$307 million capital package from Glencore, InfraVia and Nebari
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FAQS
Q1: What is the Core Lithium BP33 underground mining contract?
A1: Dev Mining Services was awarded the three-year, A$274 million underground mining contract for theBP33deposit at its Finniss Project in the Northern Territory, which includes development of the decline, drilling, blasting and ore haulage. Mobilisation is expected to commence in June 2026 with decline operations in July 2026.
Q2: When will Core Lithium BP33 first produce ore?
A2: The company expects first ore production from BP33 to commence in mid-2027, while production of the first spodumene concentrate from its Finniss Project will commence in the December 2026 quarter from the open-pit Grants deposits.
Q3: How much money has Core Lithium made from its 2026 stockpile sales to Glencore? A3: Core Lithium has raised an estimated A$28.5 million from three 2026 stockpile sales to Glencore, which have included one spodumene concentrate sale and two separate lithium fines sales.
Q4: Where is the capital for the Finniss restart coming from?
A4: The Core Lithium Project restart has been supported by a March 2026 capital raising package totalling A$307 million, comprising A$120 million in equity with a new strategically important US$120 million financing package from strategic investors Glencore, InfraVia and Nebari with facilities and convertible notes.
Disclaimer
The content in this article is intended for informational purposes only and based on publicly disclosed Core Lithium information. This article is not a substitute for professional investment advice, trading advice or financial advice, nor should it be used as advice or basis in any investment, trading or financial decision related to the company Core Lithium or its investment in lithium. Do Your Own Research.
Sources
https://data-api.marketindex.com.au/api/v1/announcements
https://www.e-mj.com/breaking-news/core-lithium-announces-second-sale-of-lithium-fines/
Luke Carlino is a seasoned Copywriter, Content Strategist, and Social Media Manager specialising in Mining, Finance, and Business journalism. With more than a decade of industry experience, he brings rigorous editorial standards and commercial acuity to every project.
