Following Core Lithium announcing the suspension of BP33 early works, Northern Territory Chief Minister Eva Lawler said she remains confident in lithium and the future of the BP33 mine.
“We’ve seen a glut of lithium, but that will absolutely change in the next few years because there is demand for lithium in the world,” Lawler said, as reported by the ABC.
On December 22 2023, Core Lithium announced that it was reviewing its operations near the Northern Territory “to address the deterioration in lithium market conditions”.
“The price of spodumene concentrate has declined more than 80 per cent year to date, including by more than 40 per cent since the end of October 2023,” the company said.
“The company has now been producing concentrates for ten months and has seen improvement in mine productivity and plant performance over that period. However, the current decline in the spodumene price has caused the company to investigate a range of options to lower costs and increase productivity.”
Such options included prioritising ore mining and possible temporary curtailment of mining operations and commercial solutions and reductions in exploration.
In citing difficulties with mining and construction during the wet season and a renewed focus on reducing expenditure, Core Lithium suspended BP33 early works.
BP33 is an underground mine located at the Finniss lithium operation in the Northern Territory.
Core chief executive officer Gareth Manderson said the company is working to optimise the business within in the current lithium pricing environment.
“While we are experiencing market volatility today, our focus is on the continued safe and efficient operation of the Finniss project while preserving the value of our operating asset, projects and exploration potential,” he said.
Despite Core Lithium’s announcement, the Northern Territory recorded its highest ever mineral exploration expenditure in December.
Additionally, companies such as St George Mining have announced large lithium plans for 2024, and Allkem and Livent merged to create Arcadium Lithium. Even Gina Rinehart’s Hancock Prospecting entered the lithium market for the first time, teaming up with Chilean major SQM to acquire Azure Minerals and advance the fancied Andover project.
All of these efforts will help meet rising lithium demand, which the Grattan Institute expects to grow by up to 41 times by 2040.
There’s plenty of momentum to indicate that lithium is in for another busy year in 2024. But where the developments come from remains to be seen.
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