Category: Projects & Operations

WA coal miner given 5-year lifeline as state-owned coal exit looms The WA Government will extend Griffin Coal’s State Agreement from July 2026 by up to five years, allowing the Ewington Mine in Collie to continue supplying coal to industry and the privately owned Bluewaters Power Station.The WA Government says it has been in “advanced negotiations” with Griffin’s major direct and indirect customers, and that the new commercial arrangements are expected to significantly reduce the subsidy required from July 1.Details as to the reduced subsidy are not yet available, with the WA Government saying they will be provided to Parliament once new commercial arrangements are finalised.Despite the agreement extension, the WA Government maintains it is on track to retire all State-owned coal-fired power stations by 2030.In May 2025, WA Minister for Regional Development Stephen Dawson indicated that support would end in mid-2026 and that any continuation would be industry-led without ongoing government funding.“Continuation beyond 30 June 2026 will need to be industry-led on a commercially sustainable basis without ongoing WA Government funding and underpinned by Griffin Coal's customers paying a fair price for coal,” he said at the time.“If this is not achievable, coal mining operations may cease.”The extension builds on the WA Government’s $220m allocation to support continued operations at Griffin until June 2026. Announced in December 2023, the WA Government warned at the time that sudden closure risked immediate job losses and electricity system stability.The WA Government says it has now provided $308m in support to Griffin Coal since 2022, and that the extension will support energy security during the transition."Collie remains critical to our government's vision of becoming a renewable energy powerhouse, with coal fired power generation underpinning energy security and affordability as we build our major new transmission lines to connect large scale wind and solar to the grid,” WA Premier Roger Cook said."The extension of the Griffin Coal State Agreement will provide certainty to the Collie community and underpin energy security for households and businesses across the South West Interconnected System, including Perth, as we deliver the energy transition."WA Energy and Decarbonisation Minister Amber-Jade Sanderson says the commitment to retire State-owned coal by 2030 remains.“Renewables firmed by batteries and gas is the least cost mix for households and businesses — and that is what we are delivering,” she said."Extending the State Agreement is a sensible, pragmatic step to provide certainty for industry, the Collie community and the power system as we deliver the energy transition."The WA Chamber of Minerals and Energy (CME) backed the extension, with CME chief executive Aaron Morey saying it is a pragmatic step.“Not only does coal remain an important source of power generation in the SWIS, key resources operations rely on coal as a reductant or heat source in their production processes,” he said.“Industry supports the pursuit of net zero by 2050 but the pathway is not linear. It will require adjustments along the way to ensure the viability of our existing operators and to safeguard high-paying jobs in our regions.”The Mining and Energy Union (MEU) also welcomed the announcement, saying it delivers long-overdue certainty for coal workers and families in Collie while supporting energy security during the transition.MEU WA District President Greg Busson says the announcement addresses the uncertainty workers have been living with as existing funding arrangements near their end.“With the current funding arrangements coming to an end, the Government’s commitment to extend support for a further five years is a practical and responsible intervention that will keep people in jobs and give workers and the Collie community the certainty they need during the transition,” he said.“Importantly, this extension comes alongside a significant reduction in the level of subsidy required from taxpayers, while still bridging the gap in a way that keeps the lights on and workers in jobs as the transition continues.“That five-year commitment gives everyone the clarity they need to plan for an orderly and just transition, rather than facing ongoing uncertainty year to year.”Alongside the extension, the WA Government will also immediately form the Collie Basin Consolidation Taskforce.The taskforce will develop a proposed future structure for the coal assets in the basin, exploring whether the basin's two mines — operated by Griffin and Premier Coal — would be more efficiently mined by a single entity.The taskforce will be required to report back to the WA Premier within six months.

BHP’s Canadian potash bill hits $12.5b after second cost reset BHP (ASX: BHP) has lifted the forecast cost of Jansen Stage 1 to $12.5b (US$8.4b), up from the initial $8.4b ($US5.7b) estimate in August 2021.The increase follows a July 2025 budget update which put the cost in the $10.4-$11b (US$7b-7.4b) range. At the time, BHP said the cost increases had been driven by inflationary and real cost escalation pressures, design development and scope changes and lower productivity outcomes.BHP says the latest uplift has been driven by construction hours and materials that were not included in previous estimates.First production has reverted to the original schedule and is now expected in mid CY27.The miner expects to update the market on the investment expenditure estimate for Jansen Stage 2 in Q4 FY26.BHP says the project has the potential for two additional expansions to reach an ultimate production capacity of 16-17mtpa.In other commodities, BHP saw strong operational performance and guidance upgrades for H1 FY26.BHP has increased its FY26 production guidance range for copper to 1900kt – 2000kt, with the miner hoping to capitalise on a 32% increase in copper prices.BHP chief executive Mike Henry says the company is investing for the decade ahead, with a significant copper growth pipeline and a pathway to about 2mt of attributable copper production in the 2030s.“We have increased FY26 group copper production guidance off the back of stronger delivery across our assets,” he said.“Our flagship copper operation, Escondida, achieved record concentrator throughput and we have increased the FY26 production guidance range.“Antamina has also lifted its production guidance, and Spence and Copper SA are tracking to plan, with Copper SA achieving record refined gold output.”In iron ore, WAIO achieved record H1 FY26 production and shipments despite ongoing negotiations with China Mineral Resources Group (CMRG).Volumes from Samarco increased as a result of stronger performance at the second concentrator following ramp up, and higher feed grades and recoveries.BHP’s steelmaking coal production in Q2 FY26 was down 12% from Q1 due to ongoing geotechnical challenges impacting underground performance and higher rainfall which impacted stripping.

Rio and BHP eye Pilbara iron ore deal Rio Tinto (ASX: RIO) and BHP (ASX: BHP) will work together to extract up to 200mt from their neighbouring Pilbara iron ore operations, Yandicoogina and Yandi.This follows BHP’s wind down of operations at the Yandi mine as the ore body nears depletion. In late October, BHP had begun informing its workforce that operations would be scaled back over the next year before ceasing all together.BHP first proposed scaling down operations at Yandi in 2017 but strong demand for iron ore led to multiple life-of-mine extensions.Under two non-binding agreements, Rio and BHP will assess a potential collaboration to develop Rio’s Wunbye deposit and for BHP to supply Yandi Lower Channel Deposit ore for processing at Rio’s existing wet plants.Rio Tinto iron ore chief executive Matthew Holcz says by working smarter, the companies can better leverage existing infrastructure to unlock additional production with minimal capital requirements.“Together we will extend the life of these operations, create additional value and further support WA jobs and local communities,” he said.BHP WA iron ore asset president Tim Day says this is a clear example of productivity in action.“By sharing our expertise and infrastructure we will create new value and deliver benefit to our people, partners, customers and communities,” he said.Subject to a final investment decision, first ore from both deposits is anticipated early next decade. 

Brightstar receives major approval for Goldfields project Brightstar (ASX: BTR) has received approval from the WA Government for the open pit development of the Lady Shenton project in Menzies.With the Mining Development and Closure Proposal approved by the WA Department of Mines, Petroleum and Exploration and the previously approved Native Vegetation Clearing Permit, the Lady Shenton deposit is now “mine ready” for production.Brightstar managing director Alex Rovira comments on the approval.“This signifies a key milestone for the development of our Menzies assets, which once in operation will represent the first mining to occur since the successful Selkirk mining JV in 2024,” he said.“Lady Shenton is now ‘mine ready’ and represents a low capex, high-margin deposit for Brightstar that complements the broader Goldfields Hub development.“With over 4moz of mineral resources on granted mining leases, Brightstar has a strategic objective of developing both the Goldfields and Sandstone projects in the coming years as part of our aspiration to be a multi-asset, mid-tier scale WA gold producer.”Brightstar plans to release an updated definitive feasibility study (DFS2.0) and a development update and timeline for the Menzies and Laverton gold projects later this quarter.

Image takes a second glance at gold A promising mineral resource estimate and a buoyant gold price have prompted Image Resources (ASX: IMA) to conduct a comprehensive review of its gold tenements.The strategy review will include potential divestiture or other commercialisation options for Image’s entire gold tenement package which contains a recently announced maiden mineral resources estimate of 2.0mt at 2.1 g/t gold for 139koz gold in the inferred category.Image Resources managing director and chief executive Patrick Mutz says the time is right to assess options for extracting the best value from the gold tenements.“We have been and remain focused on mineral sands mining and processing as our principal business. However, given the continuing buoyant gold price, it is appropriate to determine if any value can be unlocked from these gold assets in the shorter term,” he said.“We will also be evaluating the potential for Image to setup and control a contract mining, ore hauling, and toll-processing model with minimum capital requirements for the Erayinia/King project, to take advantage of the potential operating margins supported by the buoyant gold price.”If Image can extract appropriate value from the gold tenements, funds would be used to either repay remaining debt or for project development capital for the company’s next minerals sands development project.

Rio and Glencore at it again with mega merger talks  Mining majors Rio Tinto (ASX: RIO) and Glencore have confirmed they have entered preliminary takeover discussions for a merger that could create the world’s largest resources company.This is not the first time Rio and Glencore have been in merger negotiations. In 2024, discussions between the companies were unsuccessful due to valuation, leadership and cultural differences after Glencore sought a merger ratio of about 40%, implying a premium of more than 25% based on valuation at the time, and pushed for chief executive Gary Nagle to lead the combined company.  If successful, the merger would be the latest major transaction seen by the sector following last year’s Anglo American $85b merger and acquisition with Canadian copper miner Teck Resources.  The current preliminary discussions are exploring possible combinations of some or all of the businesses, which could include an all-share merger between the companies. Copper appears to be the focal point of the merger as Rio moves towards becoming a global copper leader and acquiring Glencore’s substantial copper assets, including its Mount Isa operations in Queensland, aligns strategically with this shift. This news is the latest in a wave of copper acquisitions as companies around the world look to take advantage of growing global demand and soaring prices. Rio has been advancing its copper portfolio, including ramping up operations at Oyu Tolgoi in Mongolia and pushing progress at Resolution Copper in the US. Rio expects to produce about 870,000t of copper in FY26, underpinned by production at its Oyu Tolgoi — which is anticipated to reach peak production of 500,000tpa in its lifetime — as well as its copper assets across the Americas.  Glencore’s copper outlook for FY26 is almost identical, with production expected to reach between 810,000 - 870,000t, and has a bullish growth outlook of 1.6mtpa by 2035.  Despite the shift in focus to copper, there is little synergy between the two miners' current operations — with iron ore forming the backbone of Rio’s business and Glencore remaining one of the world’s largest coal producers. Considering Rio unloaded the last of its coal assets in 2018 following investor pressure, how Glencore’s significant coal assets will align with Rio’s future is yet to be determined.  Though there is no certainty that an agreement will be reached, Rio has until February 5 to make a formal offer to Glencore. 

Westgold Resources (ASX: WGX) will divest the Mt Henry-Selene gold project in WA, closely following the announced spin-out of the company’s non-core Murchison projects.Alicanto (ASX: AQI) will acquire 100% of the 150moz project including all associated mining tenements, licences, heritage agreements, contracts and technical information.The Mt Henry project was acquired by Westgold in 2024 after being placed on care and maintenance in 2019 by Karora Resources. It hosts a combined mineral resource of 24.5mt at 1.2g/t gold for 915,000oz of contained gold and an ore reserve of 11.7mt at 1.3g/t gold for 478,300oz.Westgold will receive $15m cash and $19.6m via the issue of 19.9% of the ordinary shares in Alicanto post transaction close.Westgold says the transaction is aligned with its long-term strategic plans of focusing on larger, core operating assets rather than non-core assets such as Mt Henry.“This transaction delivers Westgold shareholders an attractive mix of cash, exposure to project upside via a large strategic shareholding and deferred consideration payable on specific project milestones,” Westgold managing director and chief executive Wayne Bramwell said.“Westgold is pleased to partner with Alicanto, whose board and management team are experienced and committed explorers and have a demonstrable record of rapidly advancing gold projects.“Westgold continues to progress discussions in relation to the potential sale of its Peak Hill and Chalice gold assets following strong inbound interest.”Alicanto interim executive chair Ray Shorrocks comments on the transaction.“The Mt Henry acquisition is an exceptional company-making opportunity for Alicanto,” he said.“It provides immediate scale, a high-quality, near-surface Resource and a clear platform for rapid growth and development.“The .9moz resource and pit shells were calculated when the gold price was one-quarter of its current level and the historic drilling data shows most holes ended in mineralisation.”The divestment follows Westgold’s recently announced demerger, with the company spinning out its non-core Reedy’s and Comet gold exploration assets to new stand-alone Valient Gold.The Reedy’s and Comet assets have a combined mineral resource of 15.6mt at 2.4g/t gold for 1.2moz.Both projects were previously in production before being placed on care and maintenance in FY23.“By establishing Valiant, we create an independent, well-funded gold company that can bring forward value from smaller assets such as the Comet and South Emu-Triton underground mines and unlock the exploration potential across the Reedy and Comet packages,” Mr Bramwell said.“Valiant will have a fast-track to cashflow with an ore purchase agreement (OPA) to be entered into with Westgold.“This collaborative, capital efficient model is proven, as demonstrated by Westgold’s investment and OPA with New Murchison Gold (ASX: NMG).“This model saw NMG transition from explorer to producer, with gold production from NMG’s Crown Prince deposit now delivering high grade oxide ore to Westgold’s Meekatharra processing hub.“Valiant can replicate this success. With several small underground mines in care and maintenance, a range of open pit opportunities and exploration upside, the Valiant team has multiple near-term restart and growth options to deliver near term cashflow.”Westgold will retain upside to exploration and production success through a substantial equity holding in Valiant.

Yilgarn Iron completes first shipment Yilgarn Iron has completed its first shipment with more than 176,000t of iron ore loaded through the Port of Esperance in WA.The five-day operation saw iron ore loaded onto the bulk carrier MV Densa Shark, which departed for China on Saturday.The shipment comes less than 12 months after Mineral Resources' (ASX: MIN) final export from the Koolyanobbing operations in the Yilgarn Hub, which were acquired by Yilgarn Iron Investments in June.Southern Ports chief executive officer Keith Wilks says having Yilgarn Iron come on board as the Port of Esperance's second iron ore exporter less than a year on from the operations ceasing in the Yilgarn is a great result."Two customers using our iron ore infrastructure means more volume and more shipments from our Port of Esperance, which ultimately means more hours for our workforce on the ground,” he said."Trade losses are never easy to weather, but by proactively pursuing opportunities to diversify our customer base and commodity throughput we continue to be a reliable partner creating enduring value across our regions."At full production, Yilgarn Iron is targeting annual exports of more than 4mt, supporting the creation of up to 15 new operational roles at the Port of Esperance in early 2026 and increasing the port's operations workforce by more than a third.Yilgarn Iron Investments managing director Fergus Campbell comments on the shipment."Exporting our first 176,000t within less than four months of assuming control of the Yilgarn Iron Ore project is a testament to our hardworking and dedicated team, as well as to our suppliers and service providers, including Southern Ports and Aurizon,” he said.Yilgarn Iron becomes the second customer to use the port's iron ore circuit, joining Gold Valley, which has exported almost 2.5mt of iron ore through the Port of Esperance since its first shipment in October 2024.

The Rhodes Ridge Joint Venture has approved a $294m (US$191m) feasibility study to progress the first stage of the Rhodes Ridge project.

BHP backs Chinese $1.69b SolGold takeover bid Major SolGold shareholders — including BHP (ASX: BHP) and Newmont (ASX: NEM) — have vowed to support a takeover from China-based Jiangxi Copper (JCC) for the right price. If JCC, SolGold’s largest shareholder, can formalise an offer of 56c (£0.28) per London stock exchange-listed share, the other major shareholders have agreed to hand over the keys to SolGold’s crown jewel — the Cascabel copper-gold project in Ecuador. Hosting the high-grade Alpala deposit, the Cascabel project is positioned to emerge as a significant global copper and gold mine. Both BHP and Newmont, who each hold a 10.3% stake, have provided a letter of intent to JCC indicating their support of the revises possible offer. Max Capital and Nichola Mather, who hold 5.1% and 2.8% respectively, have also issued letters of intent. JCC has been a significant shareholder in SolGold since December 2022 and owns 12.2% of the issued share capital of SolGold which, combined with the letters of intent, represents 40.7% of the issued share capital of SolGold. SolGold’s board of directors have indicated to JCC that if an offer that meets the terms is made, they would be minded to recommend the offer to shareholders. 

Fortescue bets $152m on Peruvian copper takeover Fortescue (ASX: FMG) has entered a binding agreement to acquire the remaining 64% of Canada- based Alta Copper for an implied value of $151m (C$139m).  Through the acquisition, Fortescue will gain full control of the Cañariaco copper project in Peru — considered a high potential long-life copper asset — which contains an estimated 1.1bt of measured and indicated resource at .42% copper equivalent as well as an additional .9bt of inferred resource at .29%. Fortescue already owns about 36% of Alta and, under the agreement, will pay Alta Copper shareholders about $1.53 (C$1.40) per share to acquire the remaining stake — a 50% premium on the company’s current 30-day volume weighted average price. Peru is a major copper-producing country, with companies including Anglo American and Glencore already extracting copper in the region. Fortescue has been operating in Latin America since 2018 and is positioned to leverage its well established technical, permitting and community engagement expertise to advance the project.  Fortescue’s recent diversification efforts have focused almost solely on clean energy products, including green hydrogen. The company is currently developing a 168,000tpa green hydrogen plant in Brazil at the industrial and port complex of Pecém, Ceará. The Cañariaco copper project aligns with Fortescue’s critical minerals diversification strategy and will form the cornerstone of the company’s copper portfolio.  Alta Copper’s board of directors, alongside officers holding 12.5% of shares, have unanimously recommended that Alta Copper shareholders approve the transaction. A vote is schedule for January 26 2026 and Fortescue will need about 66% of shareholder support for the acquisition to go ahead. The transaction is targeted to close in the Q1 CY2026.