Core to secure another lithium offtake despite softening market

Core Lithium

The Finniss Lithium project began in 2016. Image: Core Lithium.

Core Lithium is set to sign an agreement with Geneva-based Transamine for product from the Finniss project in the Northern Territory.

Transamine is a privately held company that provides raw material sourcing, marketing, financing and investment.

The discussion involves the supply of 50,000 tonnes a year of spodumene concentrate for an initial period of five years, with potential to extend in anticipation of the longer life of mine in the revised feasibility study on the Finniss project.

This goes on top of the 75,000 tonnes a year signed with Chinese lithium hydroxide and carbonate producer, Yahua for a period of two years.

Core expects to finalise the agreement with Transamine later this year, subject to due diligence and a final investment decision on the Finniss project by the company.

“This is a big step in cementing Core’s relationship with this offtake partner,” Core managing director Stephen Biggins said.

“Transamine, among other existing and prospective offtake partners, has recognised the excellent prospects for Core Lithium to become an efficient and reliable supplier of high-quality spodumene concentrate from Darwin, with the support of the Northern Territory Government.”

Biggins added that the company was committed to progress the Finniss project towards construction, commissioning and production despite the challenging lithium environment.

“This offtake sheet reinforces the confidence in the Finniss project and the long-term demand fundamentals of lithium beyond current COVID-19 challenges,” Core stated in an ASX announcement.

“Additionally, this is a reflection of Core Lithium’s commitment to the diversification of the lithium-ion battery supply chain, with the inevitable establishment and growth of downstream lithium processing and battery manufacturing in Europe.”

Core continues to negotiate with several parties for the remaining production from the Finniss operations.

The definitive feasibility study released in April last year for Finniss highlights production of 175,000 tonnes a year of lithium concentrate at the operation.

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