Lynas makes rare earths comeback

By Samantha Bawden

Friday, 27 February 2026

Economics & Commodity PricesNews

Lynas Rare Earths (ASX: LYC) has reported its best first-half profit in three years as global demand for critical minerals surged and commodity prices remained elevated.

The MOU supports Metallium’s plan to develop a national network of e-waste processing facilities, strategically located near major e-waste collection hubs, rapidly expanding U.S. data centre industrial parks and regional industrial corridors with strong logistics and waste generation.

$1 billion mine to boost industry

Economics & Commodity PricesFeaturesPolitics & Regulation

$1 billion mine to boost industry

RESOURCE industry employer group Australian Mines and Metals Association (AMMA) has called the NSW Government’s approval of a new $1 billion rare earth and metals mine in Dubbo “fantastic news” for the regional, state and national economies.

MinRes reassesses mothballed lithium mine

Economics & Commodity PricesNews

MinRes reassesses mothballed lithium mine

MinRes reassesses mothballed lithium mine Mineral Resources (ASX: MIN) reported increased lithium production during Q2 FY26, confirming its Bald Hill lithium operations may have hopes of resurrecting as prices rebound.MinRes has upgraded its lithium production guidance for FY26 to 260-280kdmt at its Wodgina operations and to 190-210kdmt at Mt Marion — a production increase of up to 30% on the lower end of previous figures.Total attributable spodumene production for the quarter across both sites hit 138kdmt, with sales of 143kdmt. Cost guidance across both sites has been maintained.The company managed an average of about $1555 /t for its 6% lithium spodumene during the quarter — a 29% quarter-on-quarter increase.With the IEA estimating that lithium demand will see eightfold growth by 2040, MinRes could be positioned to capitalise on the commodity’s resurgence.In late 2024, the company shut the doors at its Bald Hill operations in WA to preserve cash and value of the orebody for when global conditions in the lithium market improved. Given the current market dynamics, MinRes’ lithium portfolio may now have its moment.The company’s Q2 performance was also bolstered by resilient iron ore prices, despite ongoing pressures from China, with an average reported realised price of about $130 /dmt across its Onslow Iron and Pilbara Hub operations.Total quarterly iron ore production across both operations hit a record 11.5mt, with shipments of 11.1mt.The company maintained its volume and cost guidance across all operations, excluding lithium, and reported it was sitting at $600m in cash and $800m in undrawn revolving credit. Net debt decreased to $4.9b, down $500m from the previous quarter, and included a $63m positive foreign exchange revaluation on the company’s unsecured bonds.The company looks to be in a stronger market position after reporting a $900m loss in FY25.During the quarter, MinRes executed a binding agreement with POSCO for the sale of a 30% stake in its Wodinga and Mt Marion operations, an indirect 15% of each, for an upfront cash consideration of about $1.1b . The transaction is expected to be completed during H2 FY26.

Global lithium supply deficits expected as early as 2028

Economics & Commodity PricesNews

Global lithium supply deficits expected as early as 2028

Global lithium demand could exceed 13mt by 2050 under an accelerated energy transition, according to Wood Mackenzie’s latest Energy Transition Outlook for Lithium.The report found that without significant new investment, supply deficits could emerge as early as 2028 as existing supply projects are unlikely to meet demand beyond the mid-2030s.Highlighting the need for sustained investment across the value chain, Wood Mackenzie predicts the global lithium industry requires up to $393b in new investment to prevent the looming supply deficit.In the report, Wood Mackenzie models four energy transition pathways, with lithium demand in 2050 ranging from 5.6mt LCE under a delayed transition to 13.2mt LCE in a net zero scenario.Under the delayed transition scenario, the market will remain adequately supplied until 2037 before entering deficit.Under the country pledges scenario, deficits emerge around 2029, requiring an additional 6.7mt LCE of supply by 2050 to meet projected demand, and under the net zero scenario, deficits are expected to begin in 2028 and persist through mid-century.Wood Mackenzie research director Allan Pedersen says the lithium market is heading into a supply crunch sooner than many industry players may suspect.“Under ambitious climate scenarios, we see deficits emerging from 2028,” he said.“The industry needs to act now should governments progress policies towards Net Zero. Projects approved today will determine market balance in the critical 2030s.”Electric vehicles (EVs) remain the primary driver of demand growth, accounting for 72–80% of lithium consumption across scenarios, according to Wood Mackenzie.The report also noted that rechargeable batteries across all applications account for 96–98% of lithium consumption by mid-century.Wood Mackenzie senior research analyst Rebecca Grant says energy storage systems (ESS) are the sleeper story.“ESS demand grows at 6-7% annually in our forward scenarios as renewables dominate new power capacity and grids require flexibility at scale,” she said.According to Wood Mackenzie, total investment requirements range from about $148b under a delayed transition scenario to $393b under a net zero scenario.Investment is expected to peak between 2030 and 2034, driven by the need for new mining capacity, refining infrastructure and regional supply chains.“The winners will be those who can deploy capital efficiently while navigating trade fragmentation and securing regional market access,” Ms Grant said.Across all scenarios, one conclusion is consistent — lithium is irreplaceable for the energy transition and the industry faces structural supply challenges that require immediate action.“Whether we're on a 1.5°C pathway or something less ambitious, lithium demand will outstrip current supply plans,” Mr Pedersen said.“The question isn't whether we need more lithium. It's whether the industry can mobilise capital fast enough to meet demand while navigating an increasingly fragmented global trade environment.”

Energy market shock expected to drive inflation

Economics & Commodity PricesNews

Energy market shock expected to drive inflation

Australia’s economic outlook has shifted following escalation of conflict in the Middle East as rising energy costs are expected to push inflation higher than previously forecast, according to Commonwealth Bank economists.The Organisation for Economic Co-operation and Development (OECD) lifted its inflation forecast for Australia in 2026 to 4.1%, citing higher oil prices and renewed disruption to global energy markets.Commonwealth Bank Australia (CBA) expects inflation to rise further in the near term while economic growth slows as households and businesses face higher costs and tighter financial conditions.Commonwealth Bank Australian economics head Belinda Allen says the energy shock has complicated an already delicate economic balance.“Prior to the conflict, the Australian economy was operating above its supply capacity and inflation was proving stubborn,” she said.“The latest energy shock adds a new layer of complexity, lifting inflation further while also weighing on growth.“There is a wide range of possible outcomes from here.“What is clear is that higher energy prices are a headwind for the economy and both households and policymakers will need to navigate a more challenging environment.”Under CBA’s central oil price scenario, headline inflation is now expected to rise to about 5.4% by mid 2026 and trimmed mean inflation, the Reserve Bank of Australia’s preferred underlying measure, is forecast to peak at 3.8% before easing gradually as economic growth slows and labour market conditions soften.The most immediate impact is expected to come through fuel prices as retail petrol and diesel prices have already risen sharply and could increase further in coming months as global oil prices remain elevated.Beyond fuel, higher energy costs are expected to flow through to a wide range of goods and services, including transport and freight, as supply chain disruptions linked to shipping routes through the Middle East are also adding to pricing pressures.While inflation in Australia is expected to remain elevated in the near term, CBA economists expect it to moderate in 2027 as demand slows and unemployment rises.Business investment growth is also expected to be softer, though CBA assesses that the pipeline for business investment is less sensitive to these headwinds than households.However, softer economic conditions and higher oil prices are still expected to impact the profitability of many businesses, which will reduce the cashflow available for investment.Another risk is financial market stress increasing globally, which would make funding conditions in Australia for large projects more challenging and slow the rollout of projects, including within the resources sector.However, this outlook remains highly uncertain and will depend heavily on how the conflict evolves and how long energy prices remain high, CBA economists say.

Gold companies sweep up at Diggers & Dealers Awards

Gold companies sweep up at Diggers & Dealers Awards

The current record-breaking gold market was highlighted yesterday at the 34th Diggers & Dealers Awards with gold miners taking home the majority of awards. At the Diggers & Dealers gala dinner, De Grey Mining (ASX: DEG) took home the Dealer of the Year Award for its $5b sale of its Hemi gold project in the Pilbara, WA, to Northern Star Resources (ASX: NST) earlier this year. Ramelius Resources (ASX: RMS) was given the Digger of the Year Award for its consistent delivery on promised production and cost guidance targets consecutively for the last five years. This marks the second time the company has received this award, the first being in 2020. Geologist Peter Cook was awarded the GJ Stokes Memorial…

MinRes boosts Indigenous participation with new joint venture

MinRes boosts Indigenous participation with new joint venture

Mineral Resources (ASX: MIN) has commenced a new joint venture, Yardi Mining Services, to place Traditional Owners of the Onslow Iron project at the centre of sustainable economic participation. The partnership with wholly owned subsidiary CSI Mining Services (CSI) and Robe River Services (RRS), which represents the Robe River Kuruma (RRK) community in WA, creates pathways for RRK members to gain skills across a diverse range of mining services — from operating heavy machinery such as excavators and dump trucks, to roles spanning safety and administration. RRK Aboriginal Corporation and RRS chairperson Kelly Slattery says Yardi was created to deliver more than a contractual arrangement and resets the standard for Aboriginal economic participation. “At its core, this partnership is about…

Mining drives doubling electricity demand in South Australia

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Mining drives doubling electricity demand in South Australia

South Australia is on the verge of a ‘once-in-a-generation’ economic growth opportunity, underpinned by affordable, reliable and sustainable electricity, according to a report by ElectraNet.The 2026 Transmission Annual Planning Report (TAPR) shows that interest to connect to South Australia’s transmission network is at its highest level in decades, and attributes this to the strength of the state’s grid and renewable electricity generation.Peak electricity demand is forecast to double over the next 15 years, from 3.3GW currently to more than 6.5GW, according to TAPR figures.The 2026 TAPR shows increased connection demand is expected in greater Adelaide, the mid-north and south-east as a result of data centres and the AI boom, as well as defence industry development at the Osborne naval shipyard.In the Eyre Peninsula and Upper Spencer Gulf regions, growth will be driven by the mining and minerals sector, steel production reinvigoration at Whyalla and the Northern Water project.The Eyre Peninsula includes, and is close to, resources that are crucial in supporting this expected growth including high quality renewable energy sites.ElectraNet chief executive Simon Emms says the TAPR points to South Australia entering a period of economic growth with thousands of jobs being created, underpinned by the state’s world-leading renewable electricity system.“South Australia is facing a jobs boom as industries seek to access the State’s unique combination of valuable minerals and world-class wind and solar renewable energy,” he said.“As industries such as mining, steelmaking, defence and AI expand, the demand for electricity in the state is set to grow significantly.“We have the opportunity set the new global standard for a modern economy, where rapidly growing business and industry are supported by clean energy.“Timely investment in the transmission network will be the key to unlocking this economic growth across South Australia and the thousands of jobs that come with it.”Realising this enormous growth opportunity hinges on planning and enhancement of infrastructure to keep up with rapidly growing electricity demand.South Australia still has an abundance of untapped renewable energy potential in the north of the state to provide affordable, reliable and sustainable electricity supply to support this growth opportunity.“Transmission infrastructure will be vital to create an electricity superhighway, taking energy from the source to where it is needed, and managing the peaks and troughs of demand,” Mr Emms said.“So while South Australia has an exciting economic opportunity ahead, we must have the ability to take it.“It is vital that we get the planning right and that regulators and governing bodies continue to evolve with us as we tackle truly unique energy circumstances.”The TAPR highlights three proposed transmission projects that will be important to South Australia’s growth over the next 15 years.The Eyre Peninsula upgrade, anticipated between 2027 and 2028, will increase the transmission capacity by enabling the Cultana–Yadnarie lines to operate at 275kV. This project will be vital to mining and manufacturing growth in the region and will also unlock new renewable energy generation.The Northern Transmission project (NTx), which is currently in early planning stages, will extend the transmission network’s capability across the northern and eastern parts of South Australia to vastly increase network reliability.The South-East Expansion project aims to improve access to the transmission network and support future industrial growth such as timber processing, food manufacturing and biomass and wind energy generation.Having supported the state until now, traditional energy assets throughout the Adelaide metro region are being retired, including the Torrens Island Power Stations, and being rapidly replaced by batteries in areas to the north of Adelaide.The next two decades will see these trends continuing, supported by the South Australian Government’s renewable release areas, according to ElectraNet.

Bellevue Gold posts record cash flow

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Bellevue Gold posts record cash flow

Bellevue Gold (ASX: BGL) has delivered a record underlying free cash flow of $158m for Q3 FY26 after reporting increased mined and processed ore grades.The company mined 293kt of ore at 4.6g/t for 44koz gold and processed 283kt at 4.7g/t for 41koz of gold during the quarter, reporting that metallurgical recovery averaged 94.6% and continues to outperform recoveries set in its FY26 guidance.Bellevue has now established several production levels at its higher-grade Deacon Main mining area, which contributed consistently throughout the quarter, and has scheduled first development in ore at its higher-grade Deacon North mining area for Q4 FY26.With mined and processed tonnes forecast to increase for the next quarter, Bellevue remains on track to meet its FY26 production guidance of 130–150koz.Bellevue continued pre-delivering gold and reducing near-term hedge book commitments, which it expects to increase future spot gold price exposure, reporting that it is free of contractual hedge book deliveries until the end of December 2026.The company expects to continue accelerating pre-deliveries into forward gold sale commitments, further de-risking its balance sheet whilst maintaining flexibility to build cash, support investment in exploration and other opportunities as they arise.Bellevue said diesel purchases represented about 1.3% of total project costs during the financial year to February 28, 2026, with the company describing its direct diesel cost exposure as among the lowest in the sector.The company reports that it is not currently impacted by any diesel supply issues and continues to operate its power station with industry leading renewable energy rates of about 90% during March 2026.