Core Lithium restarts Finniss mine on price rebound

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 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 (LON: GLEN) to raise cash for a potential restart of Finniss after weak lithium prices forced the mine’s closure. Lithium is extracted from hard rock spodumene.

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 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.

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.