Core Lithium has announced it has restarted mining at its Finniss mine south of Darwin after operations were paused in January 2024, citing a 75 per cent fall in lithium prices.

Managing director Paul Brown said the company had begun blasting and excavation at the Grants open pit, with the move driven by a recent recovery in global lithium prices.

“The commencement of mining at Grants marks the start of Finniss returning to production, with first ore expected to be processed in the September quarter and first shipment targeted for the December quarter,” Mr Brown said.

“In less than three months since FID, we have secured funding, awarded key mining contracts and transitioned to active mining, demonstrating disciplined execution.

“Grants provides a low-risk, near-term ore source to underpin early production and cashflow, while BP33 continues to progress as the long-term foundation of the operation,” Mr Brown said.

“Our focus remains on safe, reliable execution and delivering Finniss back into production on schedule and on budget.”

Core Lithium paused operations at the Finniss mine in January 2024, after beginning production in late 2022, citing a 75 per cent fall in lithium prices, but said it would continue processing ore stockpiles.

The company has restarted operations with $170 million in funding, comprising a $99 million convertible note from Glencore Australia and European private equity fund InfraVia Capital, and a $71 million secured debt facility from Nebari Holdings. It also plans a $120 million equity raising before costs.

In March 2024, the company announced the departure of chief executive Gareth Manderson and independent director and chair of the risk and sustainability committee Andrea Hall, along with a net loss after tax of $167.6 million for the first half of the 2024 financial year, mainly attributed to the price drop, an asset write-down of $119.6 million related to the decision to suspend mining, and provisions for onerous contracts of $27.6 million.

The company’s revenue was $134.8 million.