WA resources sector spend hits record high

The Federal Government is halving fuel excise costs by more than $.26/L for three months to deliver immediate fuel relief to households and industry.The decision follows a meeting of the National Cabinet in Canberra yesterday as part of a coordinated response to as fuel prices surge and supply chains come under pressure due to the escalating conflict in the Middle East.Prime Minister Anthony Albanese says this is the biggest spike in petrol and diesel prices in history.“We're not immune from what has happened with a global price spike that is having a major impact on the global economy,” Prime Minister Albanese said.“There's no country that is immune from the impact of this and the longer the war goes on, the worse the impacts will be.”Alongside broader measures under the national fuel security plan, these measures will play a critical role in keeping exploration and mining operations moving, particularly in regional and remote areas where diesel supply is essential.Association of Mining and Exploration Companies (AMEC) chief executive Warren Pearce says the decision is a direct action that will deliver direct results.“At a time of global fuel shock, cutting the fuel excise in half provides some needed cost relief for industry and households right across Australia,” he said.“This is the kind of accelerating action industry needs and the country needs. It ensures operations can continue and supply chains remain intact for industry and regional economies.”The Federal Government will also reduce the Heavy Vehicle Road User Charge to zero for three months and will defer the next scheduled increase for the charge by six months.“We understand in particular that the heavy vehicle industry is under real pressure,” Prime Minister Albanese said.“For many trucking companies that are small, they rely upon a cash flow which is under pressure… this is about taking pressure off them.”Mr Pearce reports that the AMEC continues to hear that parts of the industry, particularly smaller and independent operators."Those in the service sector are doing it tougher when it comes to accessing fuel," he said.“It is critical that fuel wholesalers do the right thing and ensure supply is reaching all parts of the market, not just the major players.”It is not certain when exactly motorists will see prices changes at the bowser.According to the Australian Competition and Consumer Commission, cost savings were only largely passed onto motorists six-weeks after the previous excise cut was announced, in 2022, due to the way fuel is priced.

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.

BHP (ASX: BHP) is cashing in on the global clean energy transition with copper overtaking iron ore as the company’s biggest earner for the first time ever.Copper delivered 51% of BHP’s earnings for H1 FY26, bolstering the company’s returns to $7.9b for the six-month period.As the self-proclaimed largest copper producer in the world, BHP has grown its production by about 30% in the last four years, backed by production from its Escondida copper mine in Chile and Olympic Dam in South Australia.Copper price increased 32% over the previous 12 months, group revenue rose about 11% and attributable profit increased 28%, supported by higher prices and operational performance.During the half, BHP’s copper operations generated about 10% higher revenue and 6% higher underlying EBITDA than BHP’s iron ore division.This follows reports that BHP diverted shipments of its Jimblebar iron ore to alternative buyers in Malaysia and Vietnam after China’s state-run buyer China Mineral Resource Group (CMRG) banned local steel mills and traders from purchasing the product.This placed pressure on BHP to accept new price-setting mechanisms as contract negotiations stalled.A resolution is yet to be met between BHP and CMRG and the redirected shipments may incline that BHP is seeking to diversify its buyers.BHP chief executive Mike Henry says the company is optimistic that the economic backdrop is supportive for its key commodities, including iron ore.Iron ore prices have dipped since the start of 2026, with prices falling 6.5% over the previous month according to Trading Economics, and this is likely to solidify copper’s position as BHP’s breadwinner.BHP chief executive Mike Henry says the company has clear plans to increase copper production.“In copper, we are already the world’s largest producer… Our lower-risk pathway represents production growth of around 40% by 2035,” he said.BHP currently has multiple greenfield copper projects in its growth pipeline, including Resolution in the US and Vicuña in Argentina, as well as several expansion plans for its existing copper operations.“This is capital efficient, predominantly brownfield growth that will further increase the proportion of our earnings from copper,” Mr Henry said.BHP expects global demand for copper to grow by about 70% by 2050, and it is not the only company to jump on the copper bandwagon.Earlier this year Rio Tinto (ASX: RIO) entered merger talks with global copper major Glencore. The discussions however were fruitless, with neither party willing to cede on leadership nor price.In December, Anglo American and Teck Resources shareholders approved a $53b merger of equals between the copper-powerhouses to form Anglo Teck.Anglo Teck is expected to be a top five global copper producer with combined production from its mines in Chile, Peru and Canada of about 1.2mt and predicted to reach 1.35mt by 2027.Prior to the Anglo Teck announcement, Anglo American rejected BHP’s formal $75b takeover offer due to its complex structure and value risks.BHP is also leaning into diversification beyond copper.On Wednesday, amid soaring silver prices, the miner announced it had entered an agreement to deliver silver to Wheaton Precious Metals International for an upfront payment of $6.1b . The silver would be supplied by Antamina mine, located in Peru, which BHP owns a 33.75% stake in.The agreement forms part of BHP’s goal to free up $14.2b with the sale of non-core assets.

Solar and onshore wind form the basis for the least costly electricity mix for Australia moving towards the 2030 renewables target, according to CSIRO’s new GenCost draft report.CSIRO and Australian Energy Market Operator (AEMO) released their annual GenCost draft report in light of the timely debate surrounding Australia’s energy transition and taxpayer funds.Gas (4%), hydrogen (6%), coal (18%), solar PV (31%) and wind (41%) were projected to be the least-cost large-scale generation mix to achieve the 2030 renewable energies target.Battery technologies continue to show double digit cost reductions with a 15% reduction in FY26. Onshore winds costs are stabilising shown through a 5% drop in cost. Costs of solar rebounded to FY23 increases of 9% after experiencing two years of cost reductions.Contrastingly, nuclear, coal and gas open cycle cost trends have increased due to higher steam and gas turbine energy costs.CSIRO chief energy economist and GenCost project leader Paul Graham comments on the findings.“Electricity systems will always require a diversity of resources to deliver all their functions and so no single technology will meet all the system’s needs regardless of its relative cost position,” he said.The report found the average cost of wholesale electricity would be $91MWh, under the assumption of meeting 82% of the 2030 renewables target, including costs for new transmission lines.To deliver net zero by 2050, generation costs were projected to be $135-$148MWh including transmission or $114-$125MWh for wholesale generation costs alone. The National Energy Market (NEM) volume-weighted generation prices in FY25 were in line with these ranges at around $129MWh.To deliver net zero by 2050, the report found the efficient electricity sector emissions intensity estimated at .02–.05t of carbon dioxide equivalent/MWh.Eliminating all electricity sector emissions (currently estimated at 0.5t of carbon dioxide equivalent/MWh) was reported to be more costly than reducing emissions elsewhere in the economy. If the electricity emissions intensity sat higher than .05 of carbon dioxide equivalent/MWh, it would make achieving net zero more expensive overall.AEMO executive general manager system design Nicola Falcon comments on the report which will be available for public consultation.“CSIRO’s process to regularly monitor, consult on and update generation technology cost trajectories is incredibly valuable in planning for a reliable and least-cost electricity market,” she said.Formal consultation on the Draft 2025-26 Report is open from December 23 until February 2.