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- Emerging Australian lithium developer Core Lithium (CXO) has signed a five-year operating agreement with the Darwin Port Operations (DPO)
- Under the agreement, Core will export its lithium products produced at its Finniss Lithium Project through Darwin Port
- The agreement will allow lithium developments to access and use the DPO facilities to export Core’s lithium products
- On market close for the day, Core is up 6.67 per cent and is trading at 24 cents per share
Core Lithium (CXO) has signed a five-year operating agreement with the Darwin Port Operations (DPO).
Under the agreement, Core will export its lithium products produced at its Finniss Lithium Project through Darwin Port.
The DPO facilities include a truck unloading dump facility, a ship loader and conveyor equipment.
The agreement will allow lithium developments to access and use the DPO facilities to export Core’s lithium products.
Meanwhile, Lithium Developments will be responsible for providing all labour to operate the DPO facilities when handling the product and will obtain routine regulatory approvals.
The ability for Core to use the DPO facilities, combined with the short haulage distance on existing roads, means the company can minimise capital costs and lower operating costs for its mine-to-port logistics chain.
Core is preparing for the final inves tment decision in the coming months, targeting first exports of lithium in 2022.
“Access to key infrastructure like Darwin Port and the capital city of Darwin in
northern Australia enables Core to build one of the most capital efficient and cost
competitive hard-rock lithium projects in the world,” Managing Director Stephen Biggins said.
“With a successful FID expected in coming months, Core is aiming to commence
export of high-quality lithium concentrate from Darwin Port by the end of next year,” he added.
Darwin Port
The Darwin Port has been headlines recently, as the Australian Government considers revoking the 99-year lease of the port from Chinese-based operator Landbridge Group, which owns DPO.
The lease has been subject to ongoing criticism over the rising tensions between Australia and China.
However, Landbridge Australian Managing Director, Mike Hughes, has warned scrapping the deal will threaten foreign investments. He also stated that there have been no security issues raised over the operations at the port.
On market close for the day, Core is up 6.67 per cent and is trading at 24 cents per share.
