Liontown goes fully underground as lithium prices rally

South Australia is on the verge of a ‘once-in-a-generation’ economic growth opportunity, underpinned by affordable, reliable and sustainable electricity, according to a report by ElectraNet.The 2026 Transmission Annual Planning Report (TAPR) shows that interest to connect to South Australia’s transmission network is at its highest level in decades, and attributes this to the strength of the state’s grid and renewable electricity generation.Peak electricity demand is forecast to double over the next 15 years, from 3.3GW currently to more than 6.5GW, according to TAPR figures.The 2026 TAPR shows increased connection demand is expected in greater Adelaide, the mid-north and south-east as a result of data centres and the AI boom, as well as defence industry development at the Osborne naval shipyard.In the Eyre Peninsula and Upper Spencer Gulf regions, growth will be driven by the mining and minerals sector, steel production reinvigoration at Whyalla and the Northern Water project.The Eyre Peninsula includes, and is close to, resources that are crucial in supporting this expected growth including high quality renewable energy sites.ElectraNet chief executive Simon Emms says the TAPR points to South Australia entering a period of economic growth with thousands of jobs being created, underpinned by the state’s world-leading renewable electricity system.“South Australia is facing a jobs boom as industries seek to access the State’s unique combination of valuable minerals and world-class wind and solar renewable energy,” he said.“As industries such as mining, steelmaking, defence and AI expand, the demand for electricity in the state is set to grow significantly.“We have the opportunity set the new global standard for a modern economy, where rapidly growing business and industry are supported by clean energy.“Timely investment in the transmission network will be the key to unlocking this economic growth across South Australia and the thousands of jobs that come with it.”Realising this enormous growth opportunity hinges on planning and enhancement of infrastructure to keep up with rapidly growing electricity demand.South Australia still has an abundance of untapped renewable energy potential in the north of the state to provide affordable, reliable and sustainable electricity supply to support this growth opportunity.“Transmission infrastructure will be vital to create an electricity superhighway, taking energy from the source to where it is needed, and managing the peaks and troughs of demand,” Mr Emms said.“So while South Australia has an exciting economic opportunity ahead, we must have the ability to take it.“It is vital that we get the planning right and that regulators and governing bodies continue to evolve with us as we tackle truly unique energy circumstances.”The TAPR highlights three proposed transmission projects that will be important to South Australia’s growth over the next 15 years.The Eyre Peninsula upgrade, anticipated between 2027 and 2028, will increase the transmission capacity by enabling the Cultana–Yadnarie lines to operate at 275kV. This project will be vital to mining and manufacturing growth in the region and will also unlock new renewable energy generation.The Northern Transmission project (NTx), which is currently in early planning stages, will extend the transmission network’s capability across the northern and eastern parts of South Australia to vastly increase network reliability.The South-East Expansion project aims to improve access to the transmission network and support future industrial growth such as timber processing, food manufacturing and biomass and wind energy generation.Having supported the state until now, traditional energy assets throughout the Adelaide metro region are being retired, including the Torrens Island Power Stations, and being rapidly replaced by batteries in areas to the north of Adelaide.The next two decades will see these trends continuing, supported by the South Australian Government’s renewable release areas, according to ElectraNet.

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. 

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.

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.