Lynas locks in price floor for Japan

Mineral Resources (ASX: MIN) will sell a 30% stake in its operational lithium business to POSCO Holdings for $1.2b (US$765m).

WA vanadium miners get royalty relief Vanadium miners will be afforded significant royalty relief with the WA Government capping royalties for vanadium products at 2.5%.The new rate will support vanadium developers in WA, which has some of the world's best vanadium deposits, as well as the current royalty rate of zero for the midstream production of vanadium electrolyte for the manufacturing of vanadium batteries.The policy is consistent with the government's plans to install Australia's first locally built utility-scale vanadium battery in Kalgoorlie.Vanadium battery technology will assist long-duration energy storage in WA as coal-fired power stations are retired and the share of renewables significantly increases in the State's main energy grid.The 50-megawatt, 10-hour WA-made vanadium flow battery in Kalgoorlie will create 150 jobs during construction and be operational by 2029.CME chief executive Aaron Morey says reduced vanadium royalty rates — a 2025 election commitment — would support the production of a commodity that offered domestic value-adding potential.“Vanadium is an increasingly important input into battery technology and WA has some of the world’s largest known reserves,” he said.“Competitive royalty settings are vital to develop what is an emerging industry that offers an exciting opportunity for both upstream mining and the midstream processing of vanadium electrolyte.”The government will also work with the private sector to develop a local vanadium electrolyte production and battery assembly industry in Kalgoorlie to stimulate opportunities for downstream processing and exports.WA Mines and Petroleum Minister David Michael says this move will give industry players the financial confidence and certainty to make the significant investments required to see their projects come to fruition."I am pleased to provide clarity around State Government royalties for Western Australia's emerging vanadium miners and nascent vanadium battery industry,” he said."This certainty is something the industry has requested and the Cook Government has agreed and delivered."The WA Government has also doubled funding for the Exploration Incentive Scheme (EIS) to $18m.“The long-running EIS — now into its 33rd round — plays a critical role funding the discovery of new mineral deposits,” Mr Morey said.“Most exploration is undertaken by junior and mid-tier companies who have limited capital at their disposal but play an essential role maintaining WA’s pipeline of resources projects and the jobs they support.“The expansion of the EIS will allow more projects to access funding and help accelerate efforts to identify the mines of the future.”

Fortescue makes moves in Gabon, delivers record iron ore output Despite an increase in operating costs, Fortescue (ASX: FMG) has delivered record iron ore shipments and landed within production guidance for Q2 FY26.The company shipped 50.5mt throughout the quarter, bringing total shipments for the H1 FY26 to 100.2mt — a 3% year-on-year (YoY) increase.Unit costs rose 5% on Q1 prices to $28 /wmt, predominantly due to higher diesel prices and a weaker exchange rate, but the company’s full year guidance remains unchanged.The company’s Pilbara hematite iron ore was reaching about $140 /dmt while higher-grade product from the Iron Bridge operations was hitting about $180 /dmt for the quarter.Fortescue metals and operations chief executive Dino Otranto says the company has had a record first half for FY26.“This was achieved safely and sets us up well heading into the second half to meet our FY26 shipments and cost guidance,” he said.Fortescue also advanced operations at its Belinga iron ore project in Gabon, Africa following successful senior level visits. A Presidential Taskforce has now been established to streamline the planning and delivery of the Belinga iron ore project.The project was acquired in 2021 but has been slow to start for several reasons, including the deposit’s isolated location and lack of supporting infrastructure.Fortescue is set to deliver a feasibility study in December 2026 and start shipping ore by 2030.Fortescue continued to diversify and bolster its critical minerals strategy during the quarter with the acquisition of the remaining 64% of Peruvian copper miner Alta Copper for $152m.Fortescue growth and energy chief executive Gus Pichot says the company continues to make disciplined progress across its global growth portfolio of metals, critical minerals, energy and technology opportunities.“In line with our critical minerals strategy, this quarter we entered into a binding agreement to acquire the remaining 64% of Alta Copper’s shares,” he said.“Fortescue will apply its strong track record of project delivery and well-established technical, permitting and community engagement expertise to diversify and expand our copper portfolio and exploration footprint in Latin America.”During the quarter, Fortescue also reached an important milestone with delivery of its first large-scale battery energy storage system at North Star Junction.“With a total capacity of 250MWh, this installation marks the first step in a planned 4-5GWh rollout of energy storage required to support the decarbonisation of our operations over the coming years,” Mr Otranto said.

Energy grid overhaul costs hit $128b, coal remains criticalThe Australian Energy Market Operator (AEMO) draft 2026 integrated system plan (ISP) indicates that current strategies may not deliver energy security or climate objectives.The ISP confirms that coal will be required to stabilise the National Electricity Market (NEM) until 2049 — twelve years longer than previously forecast — and transmission cost estimates have increased by up to 100% in real terms.Consistent with previous reports, electricity consumption is expected to nearly double by 2050, driven by electrification of transport, expansion of data centres and industry shifting from gas to electricity. At the same time, two-thirds of the remaining coal fleet would close by 2035, with all due to retire by 2049.AEMO chief executive Daniel Westerman says renewable energy, firmed with storage, backed up by gas and connected with upgraded networks remains the least-cost roadmap to meet Australia’s energy needs.“Extensive stakeholder consultation and modelling of thousands of potential investment combinations has identified the least-cost option,” he said.Consumers will continue to play a major part in Australia’s energy transition, with expected investment in 87GW of small-scale solar, 27GW of behind-the-meter batteries and 9GW of coordinated storage from electric vehicles by 2050.“Australian consumers are world leaders in rooftop solar and are now adding home batteries and electric vehicles,” Mr Westerman said.“If those consumer devices can respond to market signals through their retailers, it will result in a lower cost power system for everyone.”This analysis underscores the need to continue to progress with investments identified in the ISP so the energy transition can deliver the lowest cost outcomes to consumers without placing more pressure on household incomes and industrial competitiveness.“While momentum in investment and delivery continues to build, challenges remain in delivering essential infrastructure at the pace required. Slower progress will erode benefits to consumers and present risks to reliability,” Mr Westerman said.To deliver the least-cost optimal development path (ODP) proposed in the draft by 2050, it would require about 120GW of grid-scale wind and solar, around 55GW of dispatchable storage (including batteries and pumped hydro) and 14GW of flexible gas.A further 6,000km of new transmission lines would also need to be added — a 13% expansion on today’s 44,000km network, but down from the 10,000km stated in the plans 2024 rendition.Since the draft 2024 ISP release, multiple renewables and grid expansion projects across Australia have been scrapped or delayed.In June the Queensland Government walked away from plans to build the $1b Moonlight Ridge wind farm. In October Snowy Hydro ordered the comprehensive review of its $12b Snowy 2.0 pumped hydro project in NSW due to material cost pressures.Future Coal chief executive Michelle Manook says the report challenges the ideology of a “renewables-only” transition.“It confirms that Australia’s current pathway is misaligned with engineering and cost realities, or the original intent of the Paris Agreement,” she said.“Major economies, including Japan, India, China and the US, continue to invest in modern, and increasingly abated, coal solutions across the value chain… Australia has been left behind, while other nations modernise their coal value chains to balance economic and energy security with emissions reductions and sustainability goals.“Climate policies need to reflect engineering reality, not ideology, otherwise Australians will continue to face rising costs, worsening reliability and still fall short of climate targets.”In October, the Queensland Government released an energy roadmap, outlining that coal will continue to underpin affordable and reliable energy supply to the state for as long as needed with gas emerging as a critical technology for system reliability.AREEA chief executive Steve Knott says it’s encouraging to see the Queensland Government acknowledge that reliable, affordable energy still depends on a strong resources industry.“The Government’s commitment to progressing enabling projects like CopperString, unlocking the North West Minerals Province and expanding gas supply means more investment, more production and more high-quality Queensland jobs,” he said.“But the roadmap will only deliver if governments at all levels work together to address logjams in the approvals system and ensure projects are not stuck in bureaucratic limbo, putting Queensland’s competitive edge at risk.How the Queensland Government’s decision to allow state-owned coal power stations to run “to the end of their technical lives” will align with climate targets is yet to be confirmed.In November, the Climate Change Authority (CCA) reported that the pace of emissions cuts would need to triple to meet Australia’s legislated 2035 target of reducing 2005-level carbon pollution by 62-70%.The CCA found the electricity and energy sectors were making the fastest gains — contributing to half the nation’s emissions reductions over the past year — improving the prospects for other sectors of the economy to decarbonise as they electrify.The final 2026 ISP is expected to be released in June next year.