Coal slumps to record low as renewables supply majority of NEM power

Critical Minerals Group (CMG) (ASX: CMG) has received a $2m grant from the Queensland Government under the Queensland Critical Minerals and Battery Technology Fund.The grant will partially fund the development of a vanadium electrolyte manufacturing demonstration plant consisting of a single 12-cell electrolyser unit that has the capacity to produce one million litres of vanadium electrolyte per year.

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.

PLS lands lithium price floor deal  PLS (ASX: PLS) has secured an offtake deal with Canmax through mid-CY28 that includes a price floor of $1400/t (US$1000/t) for spodumene from the Pilgangoora operation. Subject to receipt of a $140m (US$100m) prepayment, the supply of 150ktpa of spodumene concentrate will commence in CY26.The price floor bodes well for lithium, which has seen a sharp rebound to more than $2800/t (US$2000/t) of spodumene after sinking to lows of around $800/t (US$600/t) in mid-2025. A price floor mechanism has been recognised by government and private enterprise alike, especially as more details of Australia’s Critical Minerals Strategic Reserve have come to light. Federal Resources Minister Madeleine King has previously flagged the government’s consideration of a price floor as the reserve has been taking shape. As recently as early February, Minister King confirmed that Australia would build a pricing mechanism within the Critical Minerals Strategic Reserve."We will work to make sure Export Finance Australia has the right financial tools to be able to introduce price floors, and that may be through offtake agreements, for instance,” she said. "The reason for it is we need to be able to set a price that makes projects competitive and, quite frankly, investable. “The government has that financial backing that provides the heft at the start of a project and then as that investment comes in, which we expect it will... the government can then move out of that space.” Price floors have also been used in the US, with rare earths producer MP Materials entering a public-private partnership with the US Government. Notably, the package included a price floor commitment of $154/kg (US$110/kg) for the company’s neodymium-praseodymium products stockpiled or sold with the goal of reducing vulnerability to non-market forces. While details of Australia’s price floor for critical minerals have yet to eventuate, PLS has taken it into its own hands with the Canmax deal. Under the agreement, PLS has the option to extend the agreement for an additional 12 months, beyond the initial two-year term, and supply a further 150kt. PLS can meet the commitment from its Pilgangoora operation, including either the Pilgan plant or Ngungaju plant or a combination of both. The miner says the floor price mechanism provides downside protection against market volatility while preserving full exposure to price upside. “This agreement builds on our established relationship with Canmax and reflects both the quality and consistency of Pilgangoora’s spodumene and PLS’ proven capability as a reliable, large-scale operator,” PLS managing director and chief executive Dale Henderson said. “The US$100m interest-free prepayment and floor price structure demonstrate strong commercial confidence in our product and performance, while preserving full exposure to price upside. “The agreement strengthens our near-term liquidity and preserves operational flexibility through optional volumes, supporting disciplined production and sales decisions as lithium market fundamentals continue to improve.” 

The WA resources sector reported a record spend of $166b in 2025 —the equivalent of $454m every day — according to the Chamber of Minerals and Energy (CME) WA’s latest economic contribution survey.  The spend includes $26b in wages to direct employees, $101.4b in payments made to contractors, community groups and local governments as well as $38.6b paid in taxes and royalties to the State and Federal governments. The majority of the spend occurred in WA, accounting for $114b, where the resources sector now supports two in five jobs and provides just under a quarter of the WA Government’s general revenue, according to data from the CME. CME chief executive Aaron Morey says the rise of the WA resources sector had created hundreds of thousands of jobs, transformed national living standards and provided a funding base for the services Australians rely on every day.  “The WA resources paid $26.9b in  taxes last year, which is around $74m every day,” he said.  In addition to the wages paid to 144,784 direct employees, the survey found industry payments to suppliers and contractors had more than doubled in the space of three years to reach $100.6b to more than 26,000 local businesses in FY25.   “Behind every mine or energy project is a network of local businesses — accountants, caterers, engineers — supporting jobs in communities across Australia,” Mr Morey said.  “Each of those businesses plays a vital role for our sector — and our sector in turn is a vital source of income for those suppliers and contractors.  “It is a powerful demonstration of the multiplier effect of a strong resources sector that is supported to invest in the infrastructure, technology and people to remain competitive in an increasingly contested global landscape.”