Core Lithium (ASX:CXO) Finalises Underground Mining Contract, Setting Finniss Lithium Operation on Track

Sonal Goyal

13 May 2026 11:26 AM AEST

Core Lithium (ASX:CXO) Finalises Underground Mining Contract, Setting Finniss Lithium Operation on Track

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Highlights

Core Lithium awards a $274 million, three-year underground Mining contract to Develop Global Limited (ASX: DVP) for services at the BP33 deposit, with an option for a two-year extension, following a competitive tender process.
BP33 is the production backbone of the Finniss Lithium Operation, expected to deliver 88% of ore feed in the first 10 years of operation from a long-life, high-grade pegmatite body with over 10 years of mine life and significant exploration upside.
Mobilisation targeted for June 2026, with decline development works expected to commence in July 2026, and first spodumene concentrate production targeted for the December quarter of 2026.

Core Lithium Ltd (ASX:CXO) has released an update concerning the award of the BP33 underground mining contract to Develop Global Limited represents a significant operational milestone in Core's staged restart of the Finniss Lithium Operation in the Northern Territory.

Core Lithium is an Australian hard-rock lithium company that owns and operates the Finniss Lithium Operation, located on the Cox Peninsula approximately 88 kilometres by sealed road from the Darwin Port — one of the more strategically advantageous export positions of any Australian lithium producer given the proximity to Asian lithium conversion markets.

CXO shares were trading 2.99% higher at AUD 0.34 per share at the time of writing on 13 May 2026.

The BP33 Underground Contract: Significance and Scope

The contract awarded to Dev Mining Services Pty Ltd, a Subsidiary of Develop Global Limited (ASX: DVP), is valued at approximately $274 million over three years with an option for a two-year extension by agreement. The contract follows a competitive tender process that Core described as focused on reducing project execution risk and selecting a contractor with the Balance Sheet strength, technical capability, and relevant operational experience to support BP33's specific delivery requirements.

The scope of work under the contract is comprehensive, covering drill and blast operations, load and haul activities, decline development, production stoping, and ground support works associated with the underground mining activities at BP33. The contract structure is designed to provide Core with greater operational and production flexibility, sharing risk related to delivery and productivity between the owner and contractor — a commercial structure that aligns incentives around safe and efficient production delivery.

BP33: The Geological and Commercial Engine of Finniss

The BP33 deposit is central to the Economics of the Finniss Lithium Operation. Under the company's mine plan, BP33 is expected to contribute 88% of ore feed during the first 10 years of operation at nameplate capacity of 214,000 tonnes per annum (ktpa) of spodumene concentrate. The deposit is hosted within a large, sub-vertical pegmatite body with 290 metres of strike length and up to 30 metres in true width, with a steep southerly plunge component and a depth extent currently exceeding 800 metres. These characteristics make BP33 well-suited to Long Hole Open Stoping — a highly productive, lower-cost underground mining method appropriate for sub-vertical, high-grade ore bodies.

The dual-level access to the ore body from the decline will allow flexibility in stope sequencing, an operationally important feature that enables consistent ore delivery to the process plant. With more than 10 years of confirmed mine life and significant exploration upside at depth and along strike, BP33 provides a long-duration production base that underpins the long-term Investment economics of the Finniss operation.

Contractor Selection Rationale

The selection of Develop Global followed a competitive process focused on technical capability, underground mining experience in comparable geological conditions, a mature understanding of geotechnical risk, and practical application of development methodologies suited to BP33's anticipated ground conditions. Develop demonstrated a solution-led approach to execution and relevant experience that gave Core confidence in the safe and effective delivery of the development programme. Bill Beament, Managing Director of Develop, expressed enthusiasm for the Partnership, citing the quality of the orebody and the alignment between Develop's team capabilities and Core's operational objectives.

Conclusion

The award of the $274 million BP33 underground mining contract is a landmark operational milestone for Core Lithium's Finniss restart. It finalises the last major contractor appointment needed to advance the operation toward production, and the timeline targeting first ore from BP33 in mid-2027 and nameplate production by mid-2028 is now underpinned by contracted execution capacity. The parallel progress at Grants, the proximity to Darwin Port, and the structural cost advantages of Long Hole Open Stoping at BP33 position Finniss as a potentially competitive hard-rock lithium operation as the lithium market continues its recovery.

FAQs

Q: What is the value and term of the BP33 underground mining contract?

A: The contract is valued at approximately

Q: Why is BP33 so important to the Finniss Lithium Operation?

A: BP33 is expected to provide 88% of ore feed during the first 10 years of operation at Finniss, at nameplate production of 214,000 tonnes per annum of spodumene concentrate. It has over 10 years of confirmed mine life and significant exploration upside, making it the long-term production backbone of the operation.

Q: When is development at BP33 expected to begin?

A: Mobilisation is targeted for June 2026, with underground decline development works expected to commence in July 2026. BP33 first ore is targeted for mid-2027, with ramp-up to nameplate production by mid-2028.

Q: Who was awarded the BP33 underground mining contract?

A: The contract was awarded to Dev Mining Services Pty Ltd, a subsidiary of Develop Global Limited (ASX: DVP), following a competitive tender process. Core selected Develop based on technical underground mining capability, geotechnical expertise, relevant geological experience, and commercial alignment.

Q: What mining method will be used at BP33?

A: BP33 is well-suited to Long Hole Open Stoping, a highly productive and lower-cost underground mining method appropriate for sub-vertical, high-grade ore bodies. Dual-level access from the decline will support flexible stope sequencing and consistent ore deliver

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