Middle East conflict threatens global aluminium supply

WA vanadium miners get royalty relief Vanadium miners will be afforded significant royalty relief with the WA Government capping royalties for vanadium products at 2.5%.The new rate will support vanadium developers in WA, which has some of the world's best vanadium deposits, as well as the current royalty rate of zero for the midstream production of vanadium electrolyte for the manufacturing of vanadium batteries.The policy is consistent with the government's plans to install Australia's first locally built utility-scale vanadium battery in Kalgoorlie.Vanadium battery technology will assist long-duration energy storage in WA as coal-fired power stations are retired and the share of renewables significantly increases in the State's main energy grid.The 50-megawatt, 10-hour WA-made vanadium flow battery in Kalgoorlie will create 150 jobs during construction and be operational by 2029.CME chief executive Aaron Morey says reduced vanadium royalty rates — a 2025 election commitment — would support the production of a commodity that offered domestic value-adding potential.“Vanadium is an increasingly important input into battery technology and WA has some of the world’s largest known reserves,” he said.“Competitive royalty settings are vital to develop what is an emerging industry that offers an exciting opportunity for both upstream mining and the midstream processing of vanadium electrolyte.”The government will also work with the private sector to develop a local vanadium electrolyte production and battery assembly industry in Kalgoorlie to stimulate opportunities for downstream processing and exports.WA Mines and Petroleum Minister David Michael says this move will give industry players the financial confidence and certainty to make the significant investments required to see their projects come to fruition."I am pleased to provide clarity around State Government royalties for Western Australia's emerging vanadium miners and nascent vanadium battery industry,” he said."This certainty is something the industry has requested and the Cook Government has agreed and delivered."The WA Government has also doubled funding for the Exploration Incentive Scheme (EIS) to $18m.“The long-running EIS — now into its 33rd round — plays a critical role funding the discovery of new mineral deposits,” Mr Morey said.“Most exploration is undertaken by junior and mid-tier companies who have limited capital at their disposal but play an essential role maintaining WA’s pipeline of resources projects and the jobs they support.“The expansion of the EIS will allow more projects to access funding and help accelerate efforts to identify the mines of the future.”

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.

Diversification will keep major iron ore mining houses profitable, but waning Chinese demand is likely to push smaller producers out of the market, a new S&P Global report finds.

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.