Rio Tinto flags Middle East conflict after strong Q1

Liontown Limited (ASX: LTR) has signed an offtake agreement for 150,000wmtpa of spodumene concentrate with world-leading lithium manufacturer Canmax Technologies.The agreement assures the supply of spodumene concentrate over 2027 and 2028 from Liontown’s Kathleen Valley project in WA.

Fortescue (ASX: FMG) has lifted its fully franked interim dividend to $.62/share after posting a strong first-half result, with record iron ore shipments, improved price realisations and lower unit costs driving higher earnings.The miner reported H1 FY26 revenue of about $11.86b (US$8.4b), up 10% on H1 FY25, while underlying EBITDA rose 23% to about $6.35b (US$4.5b) and attributable net profit after tax increased 23% to about $2.68b (US$1.9b).Fortescue said earnings were supported by higher sales volumes and a stronger Hematite realised price. Hematite realised price was US$90.87/dmt and Hematite C1 unit cost fell to US$18.64/wmt, down 3% from H1 FY25.Iron ore shipments reached a record 100.2mt for the half, up 3% year-on-year.Fortescue metals and operations chief executive Dino Otranto says this has been a standout first half.“We delivered record shipments of 100.2mt while keeping our people safe and costs low,” he said.“We have the lowest operating cost in the industry, and decarbonisation is pushing that even lower.“By removing diesel across our operations, we’re structurally improving our cost position. The more diesel we eliminate, the less exposure we have to price volatility, and the stronger and more predictable our margins become.“We’re now delivering decarbonisation at scale across the Pilbara. Around 3600 solar panels are being installed every day at our Cloudbreak mine, with another one gigawatt of solar in the immediate pipeline.“Construction is underway on our first wind farm, we’ve delivered two large battery energy storage systems at our sites, and we’re working with leading global manufacturers to roll out electric mining equipment, battery systems and large-scale renewable infrastructure.“A few years ago, this would have seemed ambitious. Today, it’s part of how we operate – and it’s lowering our cost base as we build it.”Fortescue’s board declared a fully franked interim dividend of $.62/share, up 24% on the FY25 interim dividend and representing a 65% payout of first-half NPAT.The company also saw strong cash generation, reporting net cash flow from operating activities of about $4.5b (US$3.2b) and free cash flow of about $2.1b (US$1.5b) for the half.Fortescue growth and energy chief executive Gus Pichot says the company continues to build a pipeline of projects to deliver the low-cost solutions the world needs.“Commercial discipline has underpinned solid progress across our global growth portfolio this half, including for our critical minerals and exploration strategy,” he said.“We expect to finalise shortly the acquisition of Alta Copper, strengthening our copper portfolio in Latin America. Subject to completion, our immediate focus will be on technical reviews, community engagement and advancing the studies required to inform future development decisions.“In Gabon, our teams have also further advanced studies at the Belinga iron ore project, and are progressing plans for an integrated mine, rail and port development.”FY26 guidance remains unchanged, including iron ore shipments of 195–205mt and Hematite C1 costs of US$17.50–US$18.50/wmt.

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.

Rio Tinto (ASX: RIO) has commissioned a new alumina conveyor at its BC Works smelter in Kitimat, Canada as part of a CA$135m investment to improve operational reliability at the site.The 1.1-kilometre system is designed to transport about 800,000tpa of alumina, providing a consistent supply of raw material for aluminium production.The infrastructure is designed with a 50-year operational life replacing current equipment dating back to the 1960s.Rio Tinto says the new system also delivers environmental benefits, with a sealed pipe design reducing particulate emissions by around 40% through improved material containment and fewer transfer points. The recovered alumina can be reintroduced into the production process, allowing for more efficient material handling.Rio Tinto BC Works general manager Simon Pascoe says the project strengthens a critical component of the smelter’s operations.“This project is a key milestone for Kitimat and a strong signal of our confidence in the future of our operations,” he said.Rio Tinto has operated in Kitimat for more than 70 years and continues to invest in its aluminium operations in British Columbia.