Category: Projects & Operations

South32 (ASX: S32) has reported solid operating and financial performance for Q3 FY26, maintaining production guidance across all operations except Australia Manganese.   The company delivered net cash generation of US$121m despite weather disruptions and continued investment in growth. South32 chief executive Graham Kerr said several operations delivered strong results during the quarter, supported by higher aluminium prices, record year-to-date production at Brazil Alumina, and a record US$135 million distribution from Sierra Gorda. Group alumina production increased by 1% year to date, while aluminium production was broadly unchanged, with Hillside Aluminium continuing to test maximum technical capacity. At Australia Manganese, however, FY26 production guidance was revised down 6% to 3,000kwmt, reflecting elevated site water levels, wet season rainfall and impacts from Tropical Cyclone Narelle. South32 said strong operating performance and commodity price support helped offset US$158m in growth capital expenditure at the Hermosa project during the quarter, with the company’s balance sheet supporting ongoing investment in copper, zinc and silver growth. At Hermosa, South32 reported progress in federal permitting under the FAST-41 process, alongside continued advancement of underground and surface infrastructure at the Taylor zinc-lead-silver project. Cannington remained on track to meet production guidance despite significant flooding in northwest Queensland, while Sierra Gorda maintained guidance despite wet weather impacts in Chile.  South32 also highlighted potential costs pressures linked to higher freight rates, raw material prices and stronger producer currencies, while noting measures have been implemented to mitigate supply chain risks associated with conflict in the Middle East. Following the quarter, the company paid a fully franked interim dividend of US$175m, while continuing its capital management program 

Lynas Rare Earths (ASX: LYC) recorded Q3 FY26 revenue of $265m, primarily driven by increasing prices and higher volume sales of both neodymium-praseodymium and total rare earth oxide products.The miner produces 1996t of neodymium-praseodymium, 8t of dysprosium and terbium and first production of samarium oxide in Q3.Lynas says it is closely monitoring its supply chains, including fuel supply and other raw materials affected by geopolitics and global fuel markets.“To date, we have not experienced any material disruptions due to the current global fuel supply situation,” Lynas said.“However, price increases are expected for a number of materials. It is difficult to forecast the magnitude and duration of these price increases. Our supply chain team is monitoring this closely and accelerating projects which should deliver greater efficiency.”Lynas has benefited from a reduction in diesel fuel requirements, following the full commissioning of the 65MW Mt Weld hybrid renewable power station in H1 FY26.Compared to Q3 FY25, when Mt Weld was operating a diesel power plant, the new power station has saved more than 870,000l of diesel, according to Lynas.

Rio Tinto (ASX: RIO) posted a 9% year-on-year increase in copper equivalent production and its second-highest Q1 Pilbara iron ore production since 2018, up 13% year-on-year.The miner said the quarter was impacted by two cyclones, while warning of growing uncertainty around supply chains and costs due to conflict in the Middle East.Rio Tinto recorded an 8mt impact to iron ore shipments from Tropical Cyclones Mitchell and Narelle and a .9mt impact to bauxite production from Cyclone Narelle.Rio Tinto chief executive Simon Trott comments on the Q1 results.“Operating excellence drove 9% YoY copper equivalent1 production growth across our portfolio as the Oyu Tolgoi copper mine continues to ramp up as planned and our integrated aluminium business, again, delivered a strong performance,” he said.“Our Pilbara iron ore mines performed strongly, while shipments were impacted by two cyclones in the quarter.“We achieved the historic land exchange at Resolution Copper, with our project team focused on unlocking the next phase of one of the world’s largest untapped copper deposits.“The unmatchable mix and scale of our portfolio has ensured growth and supply chain resilience against changing operating conditions as we continue to closely monitor the evolving situation in the Middle East.”Rio Tinto says the impacts of the Middle East conflict have been limited on the supply-side while commodity prices have responded favourably.Iron ore, copper and lithium operations remained largely unaffected.As for fuel, Rio says higher diesel prices steepened its cost curve while higher jet fuel prices did not disrupt the business.Fatal incidents at Simandou and Kennecott led to both operations shutting down during the quarter. The operations were progressively restarted once conditions allowed.“Safety is the foundation of our business,” Mr Trott said.“The tragic loss of two colleagues this year, at Simandou and Kennecott, is a stark reminder that we must ensure everyone goes home safely at the end of every shift.”A staged restart at the Kennecott underground project commenced April 16.

Viva Energy’s (ASX: VEA) Geelong refinery will operate at reduced capacity in the short term following a fire last week, with diesel, jet fuel and petrol production all impacted. Diesel and jet fuel output will run at around 80% capacity, while petrol output will run at around 60%.The company says it has sufficient fuel stocks to cover the reduced production and expects to maintain normal fuel supply. “The Geelong refinery does not typically source Middle Eastern crude, with current crude sourced predominantly from North and South America, Southeast Asia, and Australia,” the company said. “These crude supply flows have not been impacted, and the Geelong refinery has firm crude supply through to July with high confidence that this supply can continue.” Viva Energy’s fuel sourcing has continued without interruption, supported by import cargo commitments through to the end of May. The company has also entered into an agreement with the Federal Government to purchase additional cargoes beyond its normal requirements. Viva Energy says the fire occurred in the alkylation unit which forms part of the gasoline complex. The other major processing units at the refinery, including the crude distillation units, reformer and residue catalytic cracking unit (RCCU) are unaffected, but the RCCU is offline while operations are stabilised. The company expects to be in a position to restart the RCCU and lift production of diesel, jet fuel and petrol to more than 90% of capacity in the next few weeks.  

Alcoa’s (ASX: AAI) first quarter aluminium shipments fell 8% while alumina shipments fell 31%, partly due to shipping delays linked to war in the Middle East and Cyclone Narelle.Lower sales of externally sourced alumina and seasonally lower first quarter shipments also weighed on lower alumina shipments. Proactive inventory repositioning within North America and decreased trading also drove down aluminium shipments.The company still managed to achieve revenue of $4.46b (US$3.2b), though down 7% from the previous quarter. Alcoa posted a profit of $593m (US$425m), down from $765m (US$548m) the year prior.Alcoa president and chief executive William F. Oplinger comments on the results.“Our experienced team performed very well managing the impacts from the Middle East conflict and Cyclone Narelle,” he said.“We delivered a solid quarter excluding shipment timing impacts, which we expect to realize in the second quarter of 2026.”Alumina production fell 5% sequentially to 2.4mt primarily due to lower production at Australian refineries due to the beginning of seasonal maintenance cycles.The company’s successful San Ciprián smelter restart helped keep the aluminium segment steady, with first quarter production flat at 607,000t.

Evolution Mining (ASX: EVN) has moved into a net cash position following a strong March quarter underpinned by higher gold prices and consistent operational delivery.The company generated $406m in group cash flow for the period, finishing the quarter with a $42m net cash position and total cash holdings of $1.37b.Gold production reached 170,000oz for the quarter alongside 11,000t of copper, at an all-in sustaining costs of $2,220/oz.Evolution says it remains on track to meet its FY26 gold production at lower than original cost guidance, with group copper production now expected to come in around the low end of guidance following weather disruptions at Ernest Henry.High-margin operations across the portfolio continued to drive performance, with record net mine cash flows achieved at both Mungari and Red Lake. Mungari delivered 51,000oz of gold for the quarter, while Red Lake maintained steady output above 30,000oz for the fourth consecutive quarter.Evolution managing director and chief executive Lawrie Conway says the results reflects consistent execution and disciplined capital management.“Evolution continues to generate significant cash flows from consistent operational delivery and disciplined capital allocation,” he said.“We have rapidly deleveraged by more than 31% in just over two years, reaching a net cash position by the end of March.”Across the portfolio, Evolution reported no material disruptions linked to the global fuel supply situation, noting existing supply contracts remain in place.The company also advanced several key growth projects during the quarter, including the E22 block cave and coarse particle flotation project at Northparkes and the Bert orebody at Ernest Henry. These developments are progressing on schedule and within budget, according to the miner.

Rio Tinto (ASX: RIO) has commissioned a new alumina conveyor at its BC Works smelter in Kitimat, Canada as part of a CA$135m investment to improve operational reliability at the site.The 1.1-kilometre system is designed to transport about 800,000tpa of alumina, providing a consistent supply of raw material for aluminium production.The infrastructure is designed with a 50-year operational life replacing current equipment dating back to the 1960s.Rio Tinto says the new system also delivers environmental benefits, with a sealed pipe design reducing particulate emissions by around 40% through improved material containment and fewer transfer points. The recovered alumina can be reintroduced into the production process, allowing for more efficient material handling.Rio Tinto BC Works general manager Simon Pascoe says the project strengthens a critical component of the smelter’s operations.“This project is a key milestone for Kitimat and a strong signal of our confidence in the future of our operations,” he said.Rio Tinto has operated in Kitimat for more than 70 years and continues to invest in its aluminium operations in British Columbia.

A major fire broke out at Viva Energy’s (ASX: VEA) Geelong oil refinery just after 11pm last night, with the blaze now contained to the area of origin.Fire Rescue Victoria says all emergency response personnel and Viva employees had been accounted for and there had been no reported injuries. The Country Fire Authority says the fire is still being fought by fire fighters but there is no threat to the public.Federal Energy Minister Chris Bowen says the incident will impact petrol production, with diesel and jet fuel production continuing at the refinery.Minister Bowen told the ABC that the incident appears to be an accident and there were no suspicious circumstances, although the cause remains under investigation.Viva Energy said there was no immediate impact to fuel supply and the company expects to replace any lost production through its fuel import program. The refinery is now running on reduced production rates.The incident comes as Prime Minister Anthony Albanese visits Brunei and Malaysia as part of the Federal Government’s efforts to secure more fuel amid a global fuel crisis.At normal rates of consumption, Australia had 38 days of gasoline, 28 days of kerosene and 31 days of diesel as of April 7.WA has also moved to secure its own fuel security, with the WA Government striking a deal with Cambridge Gulf to purchase and store 4 million litres of diesel. The stockpile will be owned and controlled by the WA Government.

Newmont (ASX: NEM) has halted underground operations at its Cadia gold mine following a 4.5-magnitude earthquake in the area last night.In a statement, Newmont said there had been no reported injuries.“Safety procedures functioned effectively and all underground personnel were accounted for and progressively returned above ground,” the company said.Underground operations have been paused while specialist teams undertake inspections and assessments.Two aftershocks of magnitude 2.4 and 2.2 were recorded in the area after the initial earthquake.

Yancoal (ASX: YAL) will acquire an 80% interest in the Kestrel coal mine as part of its acquisition of KCG.Kestrel, the largest producing underground coal mine in Australia, has a 25 year mine life underpinned by 164mt marketable coal reserves, according to Yancoal.Rio Tinto (ASX: RIO) previously held an 80% stake in the mine, which it sold in 2018 for US$2.25b.Yancoal chief executive Sharif Burra says the acquisition is a strong strategic fit for Yancoal, adding another high-quality, long-life mine to the company’s portfolio.“Kestrel delivers increased scale and diversification to Yancoal’s portfolio and is expected to contribute premium metallurgical coal into our product mix,” he said.“The acquisition positions us to deliver greater value to our shareholders and consolidates Yancoal’s position as a leading Australian coal miner.”On completion, Yancoal will pay an upfront cash consideration of $2.5b (US$1.85b) plus contingent cash consideration up to a maximum of $771m (US$550m) in total.Completion of the acquisition is targeted for the end of Q3 CY26.

Element 25 (ASX: E25) has secured commitments for an $18m share placement to fund the expansion of its Butcherbird manganese project in WA to 1.1mtpa of manganese oxide concentrate.This follows the June 2025 announcement that the Northern Australia Infrastructure Facility (NAIF) would support the project with a $50m investment.Element 25 managing director Justin Brown comments on the expansion.“Expanding Butcherbird is an important part of our strategy to sell manganese concentrate to steel industry partners as well as using it as feedstock in our plans to produce HPMSM,” he said.“We are pleased with the support from new and existing shareholders in this placement, particularly in light of the challenging market backdrop.”Under the placement, the company will issue 60 million fully paid ordinary shares at an issue price of $.30/share, representing a 9.1% discount to the last close price on April 8. The placement is expected to settle on April 22.