The Core Lithium Ltd (ASX: CXO) share price is climbing today after the company received a favourable outcome from the federal government. In mid-afternoon trade, the lithium producer's shares are swapping hands for 23 cents, up 4.55%.
Let's take a closer look at what was announced during the morning.
Major boost for Core Lithium
The Core Lithium share price is firmly in the green today after the company updated investors with the positive news.
According to its release, the federal government has granted Major Project Status (MPS) to Core Lithium's wholly-owned Finniss Lithium Project. This will see the development of its flagship project receive extra support from the Major Projects Facilitation Agency.
The three-year award will provide an array of benefits to the Finniss Lithium Project. These include a single-entry point for Australian Government approvals, the mapping of critical approval pathways and processes, as well as the monitoring of approval milestones for projects, and addressing any issues.
Core Lithium further noted that the Definitive Feasibility Study (DFS) will be completed in the middle of the year. Shortly following, will be the Final Investment Decision (FID), with construction to commence sometime later this year.
What did the managing director say?
Core Lithium managing director Stephen Biggins commented:
The award of Major Project Status for our flagship Finniss Lithium Project is another major milestone for both the company and the Federal Government, as we strive to enter the construction phase in 2021, subject to a Final Investment Decision.
When in production, the Finniss Lithium Project will be the first Australian lithium- producing mine outside of Western Australia, with our proximity to Darwin Port – the country's nearest port to Asia – serving as a direct route for our lithium to be processed and delivered to end users worldwide.
This opens up a pathway for a critical minerals hub to be established in Northern Australia, along with the potential for significant associated local modern manufacturing opportunities.
The Core Lithium share price has rocketed by more than 800% over the past year, and is up almost 60% year to date.