Category: Projects & Operations

Lynas Rare Earths (ASX: LYC) has signed a binding letter of intent with the US Department of War to finalise a four-year rare earth oxide offtake agreement. Under the agreement, Lynas will allocate $137m worth of rare earth oxides to support US supply chain resilience objectives with an established floor price for supply of US$110/kg for neodymium and praseodymium. This offtake agreement follows the mutual decision to modify the original agreement between Lynas and the DoW based on significant uncertainty as to whether the construction of the heavy rare earth (HRE) processing facility at Seadrift, Texas would proceed. Lynas chief executive and managing director Amanda Lacaze says, through the agreement, the US Defense Industrial Base will continue to have access to rare earth oxides essential for modern manufacturing. “We thank the US Government for working with Lynas to reach this mutually beneficial arrangement and look forward to finalising the definitive agreement in due course and continuing our productive engagement," she said. Lynas and the DoW continue to discuss further supply arrangement for HRE oxides.  Last week, Lynas extended its rare earths supply deal with Japan Australia Rare Earths (JARE) through to 2038 and established a floor of US$110/kg for neodymium and praseodymium — identical to that set in the DoW agreement.  As the world’s only significant producer of separated rare earth materials outside of China, Lynas is strategically important to diversifying the global supply of rare earths. This significance has been bolstered by the company’s H1 FY26 results in which the company reported a 63% rise in revenue for $413.7m — Lynas’ best first-half profit in three years.  Lynas saw the average price of all its rare earth products rose to $96/kg during the half, a trend that continued in 2026 with neodymium and praseodymium reaching a domestic price of $157 /kg in China. 

Northern Star Resources (ASX: NST) has flagged a further downgrade to its full-year gold guidance following weaker performance in the last two months and throughput issues at KCGM.The miner has warned that achieving even the bottom end of its 1.6–1.7moz guidance range is now “challenging”.Northern Star says its current best estimate is for FY26 production to exceed 1.5moz, after weaker-than-expected January and February performance caused by ongoing throughput constraints at the existing KCGM mill and lower mining productivity, especially at Jundee.The update marks a further deterioration from the cuts announced in January, when the company reduced group production guidance, raised AISC guidance and lowered KCGM’s expected output.In an investor call, Northern Star managing director and chief executive Stuart Tonkin said he recognised that, externally, it may appear the company had not been forthcoming with information.“That’s not the case,” he said.“In January, we absolutely thought 1.6moz was a very comfortable floor we would clear.“So to be sitting here as soon as now to say things aren’t going well, I get it, it’s as disappointing for us as it is our audience and we have to learn from that.”Until the expanded KCGM mill comes online, operations remain dependent on the existing mill, which has been struggling to maintain steady performance.Northern Star says the mill expansion remains on track for commissioning in early FY27.The miner will now undertake an operational review at Jundee, aimed at reducing costs and prioritising higher-margin ounces.“Front of mind for management and the board is that efforts to achieve the FY26 forecast do not compromise the transition to the new plant and have negative implications for Q1 next year,” Mr Tonkin said.“To deal with that concern, management’s focus over the next four months will be to set the company up to achieve its full potential from the start of FY27 and not on the achievement of short-term guidance above all else.“The production focus over this period will be on extracting ounces in the most effective way, from both a cost and mining efficiency perspective.”On the positive side, Northern Star said mining volumes at KCGM were tracking well, with ROM stockpiles continuing to build to about 100koz of high-grade ore at the end of February. The miner said this material would  be processed in FY27, displacing lower-grade ore.

Liontown (ASX: LTR) lifted H1 revenue to $207.5m as the underground ramp-up at Kathleen Valley drove a 106% surge in sales volumes.Kathleen Valley’s 1mtpa run rate was delivered on schedule, with Liontown targeting 1.5mtpa by the end of March.Liontown managing director and chief executive Tony Ottaviano says Kathleen Valley is now a 100% underground operation.“We have delivered a 1mtpa underground run-rate on schedule, sold 190,000t of concentrate across ten shipments and more than doubled revenue period to period,” he said.“The underground ramp-up is on track and we expect the second half to be materially stronger as volumes, recoveries and pricing all continue to improve.”Kathleen Valley was still ramping up in H1 with AISC of $1,179/dmt weighing on margins, although Liontown expects unit costs and cash generation to improve in H2.The miner reported an average realised spodumene price of US$888/dmt, with an encouraging price signal for Liontown coming out of its November 2025 Metalshub spot auction, which cleared at US$1,254/dmt for shipment in January 2026.Liontown says spodumene prices were strengthening into CY26 and expects cash generation to improve in H2.“The balance sheet has been reset. Pro forma gearing (excluding leases) has dropped from 48% to 22% and we had $390m in cash at 31 December 2025,” Mr Ottaviano said.“This provides us with a strong financial foundation to complete the ramp-up, progress the 4mtpa expansion study and continue to grow the company to its full potential.“We are one of a small number of producers globally that can bring additional lithium tonnes to market quickly through brownfield expansion of an operating asset. The expansion study is underway and we are advancing critical path procurement now."Liontown posted a statutory net loss of $184m, including $104.4m loss on the LGES convertible note primarily driven by the company’s share price increasing from $.70 to $1.575 over the period.Liontown said the note converted to equity in February, with an estimated $58m gain expected to be recognised on conversion.

Westgold Resources (ASX: WGX) has approved the final investment decision to expand its Higginsville processing hub from 1.6mtpa to 2.6mtpa.This follows the completion of a definitive feasibility study (DFS) confirming the expansion which would increase Westgold’s southern goldfields gold production by about 60kozpa and reduce processing costs by 24% to $34/t.Many of the upgrades within the flowsheet are designed to support further expansion to 4mtpa.Westgold managing director and chief executive Wayne Bramwell comments on the expansion plan.“The Higginsville expansion plan (HXP) is the next step to drive down unit costs and increase group free cash flow from the Southern Goldfields,” he said.“By expanding the Higginsville mill capacity to a nominal 2.6mtpa we are creating a more productive, lower-cost processing hub to match the growing outputs from our Beta Hunt mine. This will see us deliver higher group gold production at a lower cost, in line with our three-year outlook.“The DFS highlights the strength of the business case. It is underpinned by increasing annual gold production and a step-change reduction in processing unit costs – all within a short payback period.“The timing of the HXP aligns strategically with the anticipated growth in mining rates from the Southern Goldfields, ensuring that expanded processing capacity is ready to accommodate increased ore delivery from Beta Hunt.”The final capital cost for the processing plant upgrade, as determined by the DFS, is $145m.

Dyno Nobel (ASX: DNL) has sold it Phosphate Hill site in north west Queensland to Mayfair Corporation for an initial purchase price of $1 and a deferred consideration of up to $100m.Dyno Nobel had previously said that if a sale was not completed by March 31, it would progress cease operations at Phosphate Hill by 30 September 2026.This announcement came after the company reported a $149.1m after-tax impairment on the asset last year.Located 140km south east of Mount Isa, Phosphate Hill’s acid plant is critical to operations at Glencore’s Mount Isa copper smelter and its closure would significantly affect smelter operations.Sulphur dioxide produced as a byproduct at Mount Isa is processed into sulphuric acid, which is then sent to Phosphate Hill for fertiliser production.Queensland Natural resources and Mines Minister Dale Last says recent geopolitical events have reinforced the importance of protecting Queensland’s sovereign fertiliser manufacturing capability.“These assets are too important to our agricultural sector, our supply chains and our economic security to take for granted,” he said.The symbiotic relationship between Phosphate Hill and the Mount Isa smelter supports more than 1000 jobs across the region, according to the Queensland Government.Dyno Nobel chief executive and managing director Mauro Neves says the sale is an important milestone that concludes the company’s separation from the fertiliser business.“I am very pleased that our talented teams in Phosphate Hill, Mount Isa and Townsville will continue to provide Australian farmers with a secure domestic source of fertilisers supply,” he said.Mayfair will assume ownership of the Phosphate Hill operations from April 1. The privately held Australian energy and resources company currently operates the Top Camp gold project in Cloncurry, about 150km north of the Phosphate Hill site.

Rio Tinto (ASX: RIO) and the WA Government have entered into a 50:50 joint venture to complete both Stage 1 and Stage 2 of the Dampier seawater desalination plant.Stages 1 and 2 are intended to reduce pressure on regional aquifers after below-average rainfall over the past five years reduced groundwater recharge and put West Pilbara Water Supply Scheme (WPWSS) sources under increased strain.Rio Tinto says abstraction from these groundwater sources is of significant concern to Traditional Owner groups.Once fully operational, the plant will deliver 8GL of desalinated water per year to the WPWSS.WA Premier Roger Cook comments on the initiative.“WA has the strongest economy in the nation thanks largely to the Pilbara and our world-leading resources industry. That’s why we want to ensure the Western Australians who live in such an important part of our state have access to the quality infrastructure and services they deserve,” he said.“We are already working with Yindjibarndi Aboriginal Corporation to improve the Millstream aquifer’s sustainability. Now, we are investing hundreds of millions of dollars in a project that will deliver billions of litres of water to local households and businesses.”Rio Tinto iron ore chief executive Matthew Holcz says the company understands water is a scarce resource, especially in the Pilbara.“Bringing on the Dampier seawater desalination plant is an important step as we work to reduce our reliance on groundwater abstraction,” he said.“Stage 1 of the Dampier seawater desalination plant will reduce our draw on the Bungaroo aquifer, which we recognise is deeply important to the Robe River Kuruma People.”Construction of Stage 1 of the desalination plant is underway and is expected to begin delivering 4GL of annual desalination capacity later this year.Stage 2 construction, which will add a further 4GL of annual capacity, has commenced, with first water expected in 2027.

The NSW Government has approved a six-year extension to the Dartbrook coal mine in the Hunter Valley, allowing operations to continue until December 2033.The mine’s current license allows for extraction of up to 6mtpa of coal and is valid until the end of 2027.The site has a history of financial challenges. The Dartbrook coal mine was placed into care and maintenance in late 2025, less than a year after new owners relaunched operations, after entering voluntary administration and receivership in July. This decision came after operators defaulted on a $202m loan.Later that month, as its financial standing deteriorated mass redundancies occurred across the site that saw a workforce reduction of about two-thirds.According to an economic analysis conducted by the NSW Government, the extension, known as MOD8, has a projected net benefit to the economy of $471m, including $73m in gross wages, 240 direct jobs and 613 indirect jobs.If the maximum extraction rates were realised, the total revenue would extend to $1.28b, according to the NSW Government.Muswellbrook Shire Council has been supportive of the extension but has conveyed concerns if any further extensions were to be considered.In a letter to the NSW Department of Planning, Housing and Infrastructure, Muswellbrook Shire Council environmental planning director Sharon Pope said the original mine approvals were given in 2001 and were supported by an environmental impact statement (EIS) dated 2000.“Staff remain concerned that the original EIS no longer reflects current standards,” she said.“The age of the baseline data raises doubts about its reliability. Given these uncertainties, staff recommend no further time extensions after MOD8 unless comprehensive, up-to-date assessments are completed.”Underground mining has been approved at Dartbrook since 1991, however mining only occurred between 1996 to 2006.The previous operator, Anglo American, mothballed the site in 2006 following a series of safety challenges and operational concerns and three worker fatalities. The site had been idle for 19 years prior to the initial restart in 2024.

Federal Resources Minister Madeleine King has backed the potential reopening of Tasmania’s Mount Lyell copper mine which has been under care and maintenance since 2014.Mount Lyell, situated near Queenstown on Tasmania’s west coast, began production in 1894 as a copper mine with gold by-products. It is frequently cited as Australia’s oldest continuous mining field with more than $4b worth of metal estimated to be mined from the area.Following two deaths in December 2013, and a third fatality a month later, production was stopped and previous owner Copper Mines of Tasmania (CMT) placed the mine into care and maintenance in 2014.Sibanye-Stillwater acquired the mine in 2021 and recently advised Minister King that the company has completed its feasibility study into best options for re-establishment, with a board decision expected later this year.“The thing about this mine and what is very clear from speaking to Sibanye-Stillwater, is there is a lot in its favour on the reopening: the underground is now in very good shape, a lot of work has been carried out; very, very positive copper and gold prices, a great market, and it's an excellent deposit.” Minister King said in an interview to ABC Hobart Radio.CMT, a wholly owned subsidiary of Sibanye-Stillwater, holds the mining lease for the site including the established infrastructure and underground development.With both gold and copper, reaching record price highs in February 2026, and increased need for copper in establishing Australia’s clean energy future, Minister King has indicated the Federal Government is supportive and willing to assist in restart efforts.“I'll make sure I follow up my department on how we can assist if we need to assist” she said.“They've got plans for the site, but they do have to make sure they get that board approval.“And I'll be getting my department and myself and my office to put our shoulder to the wheel to make sure we can do whatever we can to make sure that happens.”

Fortescue (ASX: FMG) has lifted its fully franked interim dividend to $.62/share after posting a strong first-half result, with record iron ore shipments, improved price realisations and lower unit costs driving higher earnings.The miner reported H1 FY26 revenue of about $11.86b (US$8.4b), up 10% on H1 FY25, while underlying EBITDA rose 23% to about $6.35b (US$4.5b) and attributable net profit after tax increased 23% to about $2.68b (US$1.9b).Fortescue said earnings were supported by higher sales volumes and a stronger Hematite realised price. Hematite realised price was US$90.87/dmt and Hematite C1 unit cost fell to US$18.64/wmt, down 3% from H1 FY25.Iron ore shipments reached a record 100.2mt for the half, up 3% year-on-year.Fortescue metals and operations chief executive Dino Otranto says this has been a standout first half.“We delivered record shipments of 100.2mt while keeping our people safe and costs low,” he said.“We have the lowest operating cost in the industry, and decarbonisation is pushing that even lower.“By removing diesel across our operations, we’re structurally improving our cost position. The more diesel we eliminate, the less exposure we have to price volatility, and the stronger and more predictable our margins become.“We’re now delivering decarbonisation at scale across the Pilbara. Around 3600 solar panels are being installed every day at our Cloudbreak mine, with another one gigawatt of solar in the immediate pipeline.“Construction is underway on our first wind farm, we’ve delivered two large battery energy storage systems at our sites, and we’re working with leading global manufacturers to roll out electric mining equipment, battery systems and large-scale renewable infrastructure.“A few years ago, this would have seemed ambitious. Today, it’s part of how we operate – and it’s lowering our cost base as we build it.”Fortescue’s board declared a fully franked interim dividend of $.62/share, up 24% on the FY25 interim dividend and representing a 65% payout of first-half NPAT.The company also saw strong cash generation, reporting net cash flow from operating activities of about $4.5b (US$3.2b) and free cash flow of about $2.1b (US$1.5b) for the half.Fortescue growth and energy chief executive Gus Pichot says the company continues to build a pipeline of projects to deliver the low-cost solutions the world needs.“Commercial discipline has underpinned solid progress across our global growth portfolio this half, including for our critical minerals and exploration strategy,” he said.“We expect to finalise shortly the acquisition of Alta Copper, strengthening our copper portfolio in Latin America. Subject to completion, our immediate focus will be on technical reviews, community engagement and advancing the studies required to inform future development decisions.“In Gabon, our teams have also further advanced studies at the Belinga iron ore project, and are progressing plans for an integrated mine, rail and port development.”FY26 guidance remains unchanged, including iron ore shipments of 195–205mt and Hematite C1 costs of US$17.50–US$18.50/wmt.

The Queensland Government has launched a 10% subsidy on below-rail access charges for the next four years for users of the Mount Isa line in an effort to support industry and strengthen freight corridors.The Mount Isa line is a strategic freight corridor connecting the north-west minerals province (NWMP) to the Port of Townsville, playing a critical role in keeping exports moving.According to the Queensland Government, lowering rail transport costs will enable significant cost savings for operators within the region. For example, a rail user moving .5mtpa of minerals concentrates in a bulk operation between Cloncurry and Townsville would save about $1.4m annually and $5.6m over the four years, says the Queensland Government.Queensland Transport and Main Roads Minister Brent Mickelberg says the four-year subsidy is about backing the industries that keep the state moving by delivering practical support they can rely on.“By lowering rail transport costs, we’re making rail a more competitive option for industry, improving freight corridors and supporting growth across the NWMP,” he said.“We know transport costs can be a real pressure on industry in the north and this subsidy will encourage a shift from road to rail, improving safety on our roads and strengthening long-term freight resilience.”Minerals concentrate, fertiliser, acid, mining inputs, refined metals and cattle are all moved along the Mount Isa line.Queensland Natural Resources and Mines Minister Dale Last says the Queensland Government is serious about unlocking the full potential of Queensland’s north-west.“Queensland’s resources are world-class, and demand is strong, with the elevating phosphate to  list of critical minerals late last year,” he said.“But to meet that demand, we need to get our resources to the coast, and that’s where the Government’s Mount Isa rail subsidy kicks in.“The Mount Isa line is the backbone of the north-west economy, moving mineral concentrates, processed metals, fertilisers, phosphate rock and acid to export markets.”

On Tuesday, billionaire Sanjeev Gupta placed his Tahmoor coal mine into voluntary administration after a year of uncertainty.Mr Gupta’s latest grapple to retain control came just hours after creditors, led by Coal Mines Insurance (CMI), appeared in the Supreme Court in Sydney to push Tahmoor into liquidation over unpaid insurance claims.The hearing was adjourned until February 18, but Mr Gupta took things into his own hands when Tahmoor Coal’s board, which includes Mr Gupta, placed the company into voluntary administration.This last-ditch effort prevents creditors from forcing liquidation over the unpaid debts and allows Mr Gupta more time to find an alternate pathway for Tahmoor.During the hearing, workers’ compensation provider CMI sought $4.7m in unpaid insurance premiums. Financial statements for FY24 were also bought forth, reporting unpaid creditor claims that exceeded $18.9m.Mining and Energy Union south-west district president Bob Timbs says Mr Gupta’s record is one of disaster and broken promises for regional communities.“If this mine is not sold to a serious and reputable operator soon, it will become harder and harder to restart it safely,” he said.Last week, Tahmoor parent company GFG Alliance rejected a $350m purchase offer from a consortium led by the site’s main contractor RStar — the employer of 250 of the 500 Tahmoor workers who are currently stood down without pay while the mine is idle — according to the Mining and Energy Union.“We are very concerned that Mr Gupta is playing for time to try and hold on to Tahmoor, which he has already milked for profits to fund his failed ventures elsewhere,” Mr Timbs said.“This could put the mine out of action permanently.”The Tahmoor coal mine is the latest victim in an extensive trail of resource businesses led by Mr Gupta that have fallen into administration across Australia.In February last year, the South Australian Government forced Whyalla Steelworks’ operator OneSteel Manufacturing into administration to avoid it becoming ‘irredeemable’ under Mr Gupta who was the previous owner.Legislation was pushed through state parliament to allow the South Australia Government to act on the significant outstanding debts, including unpaid royalties of $18.5m and a $15m bill to SA Water, owed by Whyalla Steelworks' owner GFG Alliance — which is headed by Mr Gupta.In November, Mr Gupta appointed William Buck as the voluntary administrator for his company Liberty Primary Metals Australia (LPMA). The decision came prior to a Federal Court hearing scheduled to discuss its liquidation for unpaid debts to NRW Holdings (ASX: NWH) subsidiary Golding.LPMA held majority of shares in Tahmoor coal mine and was also a previous owner of the Tahmoor colliery, Whyalla steelworks and Liberty Bell Bay manganese smelter.Mr Gupta has been under scrutiny since 2021, following the collapse of GFG’s largest creditor, Greensill Capital. Administrators for the company were unable to verify financing and sales invoices, totalling about $400m, related to loans to GFG as companies listed on the invoices denied ever working with Mr Gupta or his companies.In 2021, the UK Serious Fraud Office launched a criminal investigation to investigate suspected fraud, fraudulent trading and money laundering in relation to the financing and conduct of the business of companies within the GFG Alliance, including suspected fraud links to the collapse of Greensill Capital.In 2024, Greensill Capital’s appointed administrator released a report claiming the company was owed about $1b (£472m) form GFG Alliance.The SFO investigation is ongoing.