After announcing a strategic review of its operations in December, Core Lithium today said it would suspend mining operations at the Grants Open Pit until market conditions for lithium spodumene concentrate improve.

Late last year, the company announced early works at a second NT mine – dubbed BP33 – would be suspended following the deterioration of the lithium price which has fallen 85 per cent over the past 12 months and by 50 per cent since the end of October 2023.

Core Lithium – the only lithium miner operating in the top end – said today its strategic review was ongoing to “preserve business value in light of weak market conditions”.

The firm will continue to process established ore stockpiles, but will not mine more lithium at the Grants Open Pit.

“This approach reduces the cash cost of Finniss operations, generates revenue from stockpiles and provides an opportunity to recommence mining as market conditions improve,” the company said.

“By suspending operations, rather than preferentially mining ore over waste, the current mine plan will be preserved resulting in improved economics of future mining activities.”

The miner said approximately 280,000 tonnes of ore stockpiles were available for processing until mid-2024 without any further mining.

Core added it was likely an impairment on the carrying value of the Finniss operation would be recorded in the company’s half-year results.

“The team has moved at pace to ensure Core’s value is preserved in these tough market conditions,” Core Lithium CEO Gareth Manderson said.

“While suspending mining operations is a difficult decision, processing of ore stockpiles will continue to generate revenue and we will focus on managing our cash reserves prudently.

“We are working to put the business in the best position possible to recommence mining and proceed with BP33 when market conditions improve.”

Manderson also said that the Northern Territory government had been a “supportive partner”.

“We remain committed to finding a path forward for the Finnis operation and the Territory community,” he said.

“We understand that this decision is difficult for employees, contractors and some local businesses.

“There is significant prospectivity in the NT both in the Finniss district and in our broader regional tenement holding. We will continue to take a longer-term view and explore for new lithium resources.”

Shares in Core Lithium are down 8.85 per cent to $0.24 per share this morning.