Rio and BHP eye Pilbara iron ore deal

Lynas Rare Earths (ASX: LYC) is expecting production shortfalls at its Kalgoorlie processing facility in WA due to major power supply disruptions.

Yilgarn Iron completes first shipment Yilgarn Iron has completed its first shipment with more than 176,000t of iron ore loaded through the Port of Esperance in WA.The five-day operation saw iron ore loaded onto the bulk carrier MV Densa Shark, which departed for China on Saturday.The shipment comes less than 12 months after Mineral Resources' (ASX: MIN) final export from the Koolyanobbing operations in the Yilgarn Hub, which were acquired by Yilgarn Iron Investments in June.Southern Ports chief executive officer Keith Wilks says having Yilgarn Iron come on board as the Port of Esperance's second iron ore exporter less than a year on from the operations ceasing in the Yilgarn is a great result."Two customers using our iron ore infrastructure means more volume and more shipments from our Port of Esperance, which ultimately means more hours for our workforce on the ground,” he said."Trade losses are never easy to weather, but by proactively pursuing opportunities to diversify our customer base and commodity throughput we continue to be a reliable partner creating enduring value across our regions."At full production, Yilgarn Iron is targeting annual exports of more than 4mt, supporting the creation of up to 15 new operational roles at the Port of Esperance in early 2026 and increasing the port's operations workforce by more than a third.Yilgarn Iron Investments managing director Fergus Campbell comments on the shipment."Exporting our first 176,000t within less than four months of assuming control of the Yilgarn Iron Ore project is a testament to our hardworking and dedicated team, as well as to our suppliers and service providers, including Southern Ports and Aurizon,” he said.Yilgarn Iron becomes the second customer to use the port's iron ore circuit, joining Gold Valley, which has exported almost 2.5mt of iron ore through the Port of Esperance since its first shipment in October 2024.

Fortescue bets $152m on Peruvian copper takeover Fortescue (ASX: FMG) has entered a binding agreement to acquire the remaining 64% of Canada- based Alta Copper for an implied value of $151m (C$139m).  Through the acquisition, Fortescue will gain full control of the Cañariaco copper project in Peru — considered a high potential long-life copper asset — which contains an estimated 1.1bt of measured and indicated resource at .42% copper equivalent as well as an additional .9bt of inferred resource at .29%. Fortescue already owns about 36% of Alta and, under the agreement, will pay Alta Copper shareholders about $1.53 (C$1.40) per share to acquire the remaining stake — a 50% premium on the company’s current 30-day volume weighted average price. Peru is a major copper-producing country, with companies including Anglo American and Glencore already extracting copper in the region. Fortescue has been operating in Latin America since 2018 and is positioned to leverage its well established technical, permitting and community engagement expertise to advance the project.  Fortescue’s recent diversification efforts have focused almost solely on clean energy products, including green hydrogen. The company is currently developing a 168,000tpa green hydrogen plant in Brazil at the industrial and port complex of Pecém, Ceará. The Cañariaco copper project aligns with Fortescue’s critical minerals diversification strategy and will form the cornerstone of the company’s copper portfolio.  Alta Copper’s board of directors, alongside officers holding 12.5% of shares, have unanimously recommended that Alta Copper shareholders approve the transaction. A vote is schedule for January 26 2026 and Fortescue will need about 66% of shareholder support for the acquisition to go ahead. The transaction is targeted to close in the Q1 CY2026. 

Liontown goes fully underground as lithium prices rally Liontown (ASX: LTR) has completed mining at the Kathleen’s Corner open pit, positioning Kathleen Valley as a fully underground mining operation.The annualised underground run-rate of 1mtpa was achieved on schedule, with Liontown now targeting 1.5mtpa by the end of Q3 FY26 and 2.8mtpa steady-state by the end of FY27.Liontown managing director and chief executive Tony Ottaviano comments on the company’s Q2 performance.“The December quarter represented a major operational and financial inflection point for Liontown, with open pit mining completed on schedule and the operation now 100% underground,” he said.“Underground ore production increased by 37% during the quarter, supported by strong development progress and improving operational leverage, resulting in cashflow-neutral operations.“Our US$900/dmt realised price for the quarter, on an SC6 equivalent basis, reflects the timing of offtake pricing, which was largely set prior to the strong rally in spodumene prices late in the quarter.“Pricing strength has continued into 2026, with market conditions now the most favourable experienced since the commencement of production.“With underground production continuing to scale, costs trending lower and higher pricing expected to flow through in coming quarters, Liontown is well positioned to deliver a strong financial performance in the second half of FY26.”Q2 unit operating costs and AISC decreased by 17% and 22% respectively from Q1. Liontown says it remains on track to meet FY26 guidance.Spodumene prices rallied late in the quarter and have remained firm into 2026, improving sentiment across the lithium sector. Now, LG Energy Solution has elected to convert its entire US$250m convertible note holding into an estimated 239 million fully paid ordinary shares in Liontown.“LG Energy Solution's decision to convert their entire holding to equity is a strong endorsement of Kathleen Valley's tier-one quality and our operational execution,” Mr Ottaviano said.“This conversion delivers immediate benefits to shareholders. It simplifies our capital structure, eliminates future interest obligations on the notes, and strengthens our balance sheet — giving us real financial firepower as we scale production, while remaining focused on shareholder returns and disciplined capital allocation.“Importantly, it deepens an already important strategic partnership with LG Energy Solution. LG Energy Solution was instrumental in supporting our transition to producer, and their decision to become a significant equity holder further aligns our interests.“We now have one of the world's leading battery manufacturers as both a cornerstone shareholder and a long-term offtake customer — a powerful combination as we execute on Liontown’s full potential.”Upon completion, LG Energy Solution will hold about 8% of Liontown’s issued share capital, with the shares to be issued within five business days.