Fortescue forks out $1b for green energy

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. 

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.

The Queensland Government has declared the proposed $2.3b Eva copper mine a large resource project under the Strong and Sustainable Resource Communities Act 2017.The declaration means, if approved, the project must employ a percentage of its workforce locally and prioritise local procurement, ensuring long-term social and economic benefits for the surrounding Mt Isa and Cloncurry communities.Located 75km north of Cloncurry and 95km northeast of Mount Isa, the Eva project is expected to produce an average of 60,000tpa of copper and 19,000ozpa of gold over a 15?year mine life.Copper concentrate extracted at the project will be processed locally at Glencore’s Mount Isa copper smelter, supporting existing industrial capability in the region.Queensland Deputy Premier and State Development, Infrastructure and Planning Minister Jarrod Bleijie has also extended Eva’s prescribed project declaration, providing additional certainty and streamlined approval pathways.The extension allows the coordinator general an additional two years, until March 25, 2028, to continue providing coordinated support and fast-tracking approvals to keep the project moving.Deputy Premier Bleijie says the Queensland Government is focused on delivering a better lifestyle through a stronger economy, by supporting projects that deliver jobs, investment and long-term regional benefits.“Eva copper has the potential to be Queensland’s biggest copper mine, and we want to ensure the communities closest to the project share directly in its success,” he said.“Declaring Eva copper a large resource project strengthens local employment opportunities, supports regional businesses and ensures long term benefits for Mount Isa and Cloncurry.”The project, owned by Harmony Gold, is anticipated to generate up to 1000 construction jobs and 450 ongoing operational roles, delivering a major boost to the region’s workforce and economy.Cloncurry Mayor Greg Campbell says Eva’s designation as a large resource project would assist local efforts to ensure benefits for the Cloncurry community.“We want to make sure the project not only generates long-term economic benefits throughout our local supply chains but also creates social and community benefits for our residents,” he said.Forecast to inject more than $17b into Queensland’s economy, first copper concentrate is expected to be delivered to the Mount Isa smelter in 2028.Harmony Gold chief development officer Johannes Van Heerden says the company welcomes the Queensland Government decisions.“As a Tier 1 Mining jurisdiction, Queensland offers coordination support and a stable regulatory framework that has helped Eva copper move forward through planning and into construction with certainty,” he said.

IGO: 'No pathway' for Kwinana even as lithium rebounds A recovery in lithium prices has strengthened IGO’s (ASX: IGO) Greenbushes operation, but the miner says Kwinana remains a high cost asset with “no pathway” to appropriate returns.IGO expects the lithium market's strong price growth to continue into early 2026. Average realised spodumene price increased 16% in Q2 to $1200/t (US$850/t).Despite a positive price environment, lithium hydroxide production at Kwinana declined to 35% of nameplate capacity in Q2 due to plant maintenance shutdown in late October and early November.“Kwinana production was impacted by a maintenance outage but demonstrated about 50% capacity utilisation in December,” IGO managing director and chief executive Ivan Vella said.“As IGO has noted previously, even with higher production and lithium hydroxide prices, we see the refinery as a high cost asset with no pathway to appropriate returns.”Greenbushes production was up 10% in the quarter reflecting increased ore mined and an improvement in grade following Q1’s grade and weather impacted volumes.Spodumene sales at Greenbushes were higher than the previous quarter but remain below production.“Greenbushes spodumene production improved to 352kt, after a weaker first quarter impacted by grade and weather,” Mr Vella said.“CGP3 construction was completed and first ore processed in December.“This is a significant milestone. While some schedule slippage and capex increase was experienced earlier in the project, it is pleasing that the asset is now ramping up in a strong market. We will be looking to maximise production from the asset in H2 FY26.”Nova delivered 3.8kt of nickel and 1.8kt of copper in the quarter. The operation is expected to reach its end of life by late 2026.“The Nova operation is being managed well,” Mr Vella said.“For its remaining life, the focus is on safety, stable production and managing costs. The operation is still generating positive free cash and selling into a strengthening nickel market.”IGO saw a further improvement in TRIFR, down to 5.8 from 8.0 in Q1, which the miner says is the result of its continued focus on harm prevention and safety culture.