The five-year contract covers the DMS processing facilities and the associated tailing storage facilities infrastructure
Primero to operate and maintain Core Lithium's dense media separation plant at the Finniss lithium project. (Credit: keesstes from Pixabay)
Core Lithium has awarded a A$60m ($38m) operations and maintenance (O&M) contract to Primero for the dense media separation (DMS) plant at its 100% owned Finniss lithium project in Australia.
The five-year contract covers the DMS processing facilities as well as the associated tailing storage facilities (TFS) infrastructure.
Primero is a fully-owned subsidiary of construction and mining contractor NRW.
The Finniss lithium project is being developed near Darwin, Northern Territory.
Core Lithium CEO Gareth Manderson said: “The O & M contract award to Primero extends the relationship Core has with Primero from beyond the Engineering, Procurement & Construction (EPC) contract. Significantly Primero are not only building the projects DMS facility, they now back their workmanship through the O & M.”
Primero is said to have a majority of key personnel ready for deployment into the contract beginning this month. The deployment of the remaining personnel along with the completion of operational readiness activities are expected to be recruited by December 2022.
NRW CEO Jules Pemberton said: “The diversification of the Primero business into longer term operational contracts is continuing to grow with this award showcasing the depth and operational knowledge of the group, especially within the battery minerals sector.
“The capability to develop and operate assets of this nature is well aligned with the group’s strategy over the coming years and will continue to evolve with build own operate and equity style investments in projects.”
The production of the first spodumene concentrate at the Finniss lithium project is anticipated in 2023.
The Finniss project was awarded major project status by the Australian government in March 2021. It is expected to deliver high-grade lithium suitable for lithium batteries for powering electric vehicles and renewable energy storage.
In April 2022, Core Lithium entered into a binding tenement sale and purchase agreement with Newmont Exploration, a subsidiary of Newmont, to acquire the Shoobridge project.
According to Core Lithium, the Shoobridge project is located nearly 80km south-southeast of the Finniss lithium project.