Solar and wind to lead Australia’s decarbonisation effort

Lynas Rare Earths (ASX: LYC) has reported its best first-half profit in three years as global demand for critical minerals surged and commodity prices remained elevated.Lynas, the world’s largest rare-earth producer outside China, reported a 63% rise in revenue for $413.7m in the for the first half of FY26, following the average price of of all its rare earth products rose to $96/kg during the half.This trend has continued in 2026 with neodymium-praseodymium reaching a domestic price of $157 /kg in China.Lynas Rare Earths chief executive Amanda Lacaze says the market is moving quickly.“Following the completion of the Lynas 2025 capital investment program, we have the assets and capabilities to immediately benefit from the improved market conditions,” she said.“Lynas is the only company able to capture the full value of this market upside.“This is due to our position as the only commercial producer of separated light and heavy rare earth oxides outside China today.”The company also saw a 32% increase in cost of sales due to a 14% increase in neodymium-praseodymium sales volume and a full 6 months of operating costs from Lynas Kalgoorlie. Significant power outages in Kalgoorlie and maintenance activities in Kuantan during the December quarter further contributed to these costs.“All of this occurred in a global context where the focus on rare earth supply chain security is reshaping the market through government actions to address dysfunction and supply challenges,” Ms Lacaze said.At Mt weld, completion of commissioning the expansion project saw the flotation circuit ramped up to 70% of the nameplate and the new hybrid renewable power station achieved 92% renewable energy production in December.“This has been a very exciting period for Lynas,” Ms Lacaze said.“We completed commissioning for the Mt Weld expansion project, delivered the first half year of heavy rare earth production at Lynas Malaysia, launched the Towards 20230 growth strategy and successfully completed an equity raising to support our growth agenda.

Gina Rinehart has become the majority shareholder in the US’s only rare earths producer, MP Materials, while majorly decreasing her US-listed lithium holdings.

China-Australia steel dilemma reaches boiling point China has warned the Federal Government that imposing tariffs or quotas on steel imports could damage Australia’s iron ore industry.The warning came after the Anti-Dumping Commission found there were “reasonable grounds” to support claims by Australian suppliers that Chinese companies were undercutting local competitors by dumping millions of dollars’ worth of steel and aluminium products.Dumping occurs when a company exports a product at a price that is lower than the price charged in the country of manufacture — often due to state-backed subsidisation allowing the exporter to sell their goods at a lower price. Global overcapacity in steel production, an industry China dominates, and increasingly protectionist trade policies have led to an increase in this practice.Chinese companies are at the centre of most investigations by the Anti-Dumping Commission about unfair trade across the steel and aluminium sectors.In a letter to the Anti-Dumping Commission, Chinese Ministry of Commerce export division first secretary Fan Xi noted that Australia’s iron ore industry is “deeply interwoven” into China’s steel industry and supply chain cooperation is essential.“We urge the Committee to respect facts and rules, correct its improper approaches, refrain from negatively impacting the stable and healthy cooperation between the industries of both countries, and earnestly adhere to multilateral trade rules,” he said.“We call for avoiding the misuse of trade remedy measures and ensuring the legitimate rights and interests of Chinese exporting enterprises are safeguarded in a fair, just and non-discriminatory manner.”It is no secret China has the ability to disrupt Australia’s iron-ore industry.More than 80% of Australia’s iron ore exports are bound for China, with exports totalling $385b for FY25, according to the Australian National University.If the dispute between China and Australia escalates, it could place further downwards pressure on iron ore pricing.In its recent quarterly report, BHP (ASX: BHP) confirmed that it remains in a deadlock with China’s state-run buyer, China Mineral Resources Group (CMRG), over an annual buying contract — which has also negatively affected its realised prices.China has long been trying to control market fluctuations. In response to climbing iron ore prices, the Chinese Government established CMRG in 2022 to act as intermediary and centralise iron ore purchasing to improve China’s pricing power in the global market — reverting to private contract negotiations.The state-controlled entity now coordinates 600-700mtpa or about 55-64% of China's total iron ore imports, according to GMK Centre.The Federal Government and iron ore majors are treading lightly as any move that prompts China to further diversify suppliers or alter buying terms can have resounding affects across Australia’s industries.Australian manufacturers are urging the Federal Government to introduce tariffs of 50% as well as a 400,000t-450,000t quota on fabricated steel imports which, if unchecked, pose a threat to the stability of local markets.Federal Industry and Innovation Minister Tim Ayres says Australia has a robust anti-dumping regime that is built to ensure that domestic industry is protected from unfair trade practices overseas.“As Australians saw last year, the announcement of tariffs by the US administration was an unwelcome development,” he said.“We have acted to make sure that our anti-dumping regime is fit for purpose. We’re backing Australian manufacturing because it delivers good jobs in suburbs right around Australia.”For now, Australia continues to grapple with balancing its domestic industries with the need to keep its biggest export market willing to spend.

BHP (ASX: BHP) is cashing in on the global clean energy transition with copper overtaking iron ore as the company’s biggest earner for the first time ever.Copper delivered 51% of BHP’s earnings for H1 FY26, bolstering the company’s returns to $7.9b for the six-month period.As the self-proclaimed largest copper producer in the world, BHP has grown its production by about 30% in the last four years, backed by production from its Escondida copper mine in Chile and Olympic Dam in South Australia.Copper price increased 32% over the previous 12 months, group revenue rose about 11% and attributable profit increased 28%, supported by higher prices and operational performance.During the half, BHP’s copper operations generated about 10% higher revenue and 6% higher underlying EBITDA than BHP’s iron ore division.This follows reports that BHP diverted shipments of its Jimblebar iron ore to alternative buyers in Malaysia and Vietnam after China’s state-run buyer China Mineral Resource Group (CMRG) banned local steel mills and traders from purchasing the product.This placed pressure on BHP to accept new price-setting mechanisms as contract negotiations stalled.A resolution is yet to be met between BHP and CMRG and the redirected shipments may incline that BHP is seeking to diversify its buyers.BHP chief executive Mike Henry says the company is optimistic that the economic backdrop is supportive for its key commodities, including iron ore.Iron ore prices have dipped since the start of 2026, with prices falling 6.5% over the previous month according to Trading Economics, and this is likely to solidify copper’s position as BHP’s breadwinner.BHP chief executive Mike Henry says the company has clear plans to increase copper production.“In copper, we are already the world’s largest producer… Our lower-risk pathway represents production growth of around 40% by 2035,” he said.BHP currently has multiple greenfield copper projects in its growth pipeline, including Resolution in the US and Vicuña in Argentina, as well as several expansion plans for its existing copper operations.“This is capital efficient, predominantly brownfield growth that will further increase the proportion of our earnings from copper,” Mr Henry said.BHP expects global demand for copper to grow by about 70% by 2050, and it is not the only company to jump on the copper bandwagon.Earlier this year Rio Tinto (ASX: RIO) entered merger talks with global copper major Glencore. The discussions however were fruitless, with neither party willing to cede on leadership nor price.In December, Anglo American and Teck Resources shareholders approved a $53b merger of equals between the copper-powerhouses to form Anglo Teck.Anglo Teck is expected to be a top five global copper producer with combined production from its mines in Chile, Peru and Canada of about 1.2mt and predicted to reach 1.35mt by 2027.Prior to the Anglo Teck announcement, Anglo American rejected BHP’s formal $75b takeover offer due to its complex structure and value risks.BHP is also leaning into diversification beyond copper.On Wednesday, amid soaring silver prices, the miner announced it had entered an agreement to deliver silver to Wheaton Precious Metals International for an upfront payment of $6.1b . The silver would be supplied by Antamina mine, located in Peru, which BHP owns a 33.75% stake in.The agreement forms part of BHP’s goal to free up $14.2b with the sale of non-core assets.