Fortescue makes moves in Gabon, delivers record iron ore output

US President Donald Trump and Chinese President Xi Jinping have reached a trade and economic deal to suspend additional export controls on rare-earth metals, according to the White House.

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.

Coal slumps to record low as renewables supply majority of NEM power Coal-fired generation for the National Electricity Market (NEM) fell to an all-time quarterly low, down 4.6% year-on-year, as renewables account for a record 52.4% of total energy needs during Q4 CY25.Australian Energy Market Operator’s (AEMO) latest Quarterly Energy Dynamics report showed average prices of $50/MWh for the NEM, a 43% decrease from the previous quarter.The quarter saw strong growth in renewable and storage output, with wind generation up 29%, grid scale solar up 15% and battery discharge nearly tripling to an average of 268MW, supported by 3,796MW of new battery capacity added since late 2024.AEMO policy and corporate affairs executive general manager Violette Mouchaileh says the quarter marked a significant milestone for Australia’s energy transition.“This is a landmark moment for the NEM. For the first time, renewables and storage supplied more than half of the system’s energy needs for a full quarter,” she said.“It reflects years of sustained investment and demonstrates that more wind, solar and battery capacity in the system reduces reliance on higher cost coal and gas generation, placing sustained downward pressure on wholesale electricity prices.”Rooftop solar hit an all-time quarterly high of 4,407MW (up 8.7%), reducing daytime operational demand and contributing to battery charging while new minimum operational demand records were set for the NEM (down 4% to 9,666MW), Victoria (1,287MW), Tasmania (678MW) and South Australia (-263MW).The East Coast Gas Market saw a 3% reduction in total demand, largely driven by lower liquefied natural gas (LNG) export requirements in Queensland.Many of the trends seen in the NEM were also reflected in WA’s Wholesale Electricity Market (WEM), with renewable and storage generation reaching new highs.Increased renewable and battery generation placed downward pressure on wholesale energy prices — driving a 32% drop — and contributed to a reduction in both coal and gas-fired output, which fell 5.8% and 16.4%, respectively.WA’s domestic gas market also saw consumption fall 9.3% during the quarter.WA Energy and Decarbonisation Minister Amber-Jade Sanderson says AEMO’s report reflects the progress made to support new investments in renewable generation and battery storage."Backed by gas, this will see the lowest cost energy mix that will drive WA's clean energy future,” she said."The Government will continue to pursue the sensible and pragmatic policies needed to build on these outstanding results — to deliver affordable and reliable energy for WA households and businesses."

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.”