By Penny Langford
Core Lithium (ASX: CXO) has confirmed a significant operational pivot at its flagship Finniss Lithium Operation in the Northern Territory, reporting the formal recommencement of mining at the Grants open pit and the initiation of underground development at the BP33 deposit. These milestones, achieved during Q2 2026, signal a staged return to production amid a shifting lithium price forecast 2026 landscape.
Grants Open Pit and Production Timeline
Mining activities, including blasting and excavation, formally restarted at the Grants open pit in May 2026. The restart, supported by a A$50 million surface mining contract awarded to NRW Pty, focuses on an optimized pit design intended to maximize early cash flow.
The Grants deposit is projected to deliver approximately 784,000 tonnes of ore, yielding an estimated 134,000 tonnes of SC5 spodumene concentrate over its remaining life. Core Lithium expects the first ore to be processed in the September quarter, with the first shipment of SC5 concentrate scheduled for December 2026.
BP33 Underground Development
Parallel to the surface restart, Core has accelerated the development of BP33, the project’s primary long-term growth driver. Following the award of a US$274 million underground mining services contract to Dev Mining Services, box-cut and civil works have advanced through Q2.
The underground decline development is slated to begin in July 2026. This transition is critical for the project’s goal of reaching a nameplate capacity of 214,000 tpa of concentrate by mid-2028. First ore from BP33 is anticipated by the middle of 2027.
Financial Strengthening and Exploration
Core’s financial position improved significantly in the first half of the year, with its cash balance rising from A$91.6 million to A$181.8 million. This liquidity boost supports the recommencement of operations and the acquisition of the Bynoe Lithium Tenement from Charger Metals, consolidating the company’s footprint in the region.
Strategic moves also included an agreement with Glencore for the sale of approximately 45,000 tonnes of lithium fines from existing stockpiles. Furthermore, the company launched the Blackbeard exploration program, targeting depth extensions of known mineralized zones.
| Milestone | Expected Timing | Key Data Point |
|---|---|---|
| Grants Ore Processing | Q3 2026 | 784,000t LOM Ore |
| BP33 Decline Start | July 2026 | US$274M Contract |
| First SC5 Shipment | December 2026 | 134,000t LOM SC5 |
| BP33 First Ore | Mid-2027 | 214ktpa Target (2028) |
2026 Outlook and Key Risks
The restart comes as the broader industry monitors mining news for signs of a price recovery. While the staged restart at Finniss mitigates some operational risk, the project remains sensitive to spodumene price volatility.
Core’s ability to maintain its Dec 2026 shipment target depends on the seamless integration of the NRW and Dev Mining teams. For investors, the primary risks include inflationary pressures on underground development costs and the timing of supply additions from Tier 1 producers, which could impact margins as Finniss ramps back toward full capacity.
