Core Lithium (ASX: CXO) has restarted mining at its Finniss lithium operation in Australia’s Northern Territory as recovering lithium prices spur producers to revive idled projects.
Blasting and excavation activities are underway, with first exports of spodumene concentrate targeted for the December quarter, the company said Wednesday. Core Lithium is advancing a staged return to production after securing a A$290-million (US$207-million) funding package.
Finniss was placed on care and maintenance in 2024 following a steep downturn in lithium prices that began in late 2023. Earlier this year, Core Lithium sold a stockpile of ore to Glencore (LSE: GLEN) to raise cash for a potential restart of Finniss.
The move adds to signs of a broader recovery in the lithium sector after a prolonged slump forced miners to halt operations and cut spending. Mineral Resources (ASX: MIN), said earlier this week that it would restart its Bald Hill lithium mine in Western Australia after an 18-month suspension.
Lithium price
Spodumene concentrate prices have climbed sharply since mid-December, reaching their highest level in more than two years this month, though they remain well below the record highs of late 2022.
The price of 99.5% lithium carbonate from China was $28,150 a tonne on Friday compared with $8,825 a year ago, according to the The Wall. St. Journal.
Companies linked to Australian billionaire Gina Rinehart are also moving ahead with the Andover lithium project in Western Australia alongside Chile’s SQM (NYSE: SQM), the world’s second-largest lithium producer.
Shares in Core Lithium have gained 5.4% this year to A30¢ apiece in Sydney on Friday, valuing the company at A$955 million.
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