Solar and wind to lead Australia’s decarbonisation effort

BHP (ASX: BHP) has concluded price talks for its iron ore sales contract with the China Mineral Resources Group (CMRG) after more than seven months of negotiations.This closely follows a recent trip to China by BHP chief executive Mike Henry and incoming chief executive Brandon Craig.Despite the prolonged negotiations, BHP posted solid metrics for both iron ore production and price in the March quarter. WAIO achieved record production with an average realised price of US$84.91/wmt, up 2% from the year prior.“BHP has delivered strong performance over the past nine months, including record material mined and concentrator throughput at Escondida and record production at WAIO,” Mr Henry said.“These results reflect the consistency of our operations and the strength of our high margin diversified portfolio in an evolving operating environment.”BHP now expects its FY26 group copper production to fall in the upper half of the guidance range, with Escondida and Antamina offsetting Spence, which had its guidance lowered due to ongoing ore characteristic challenges. Samarco is now expected to achieve the top end of its FY26 production guidance range.“In copper, strong performance at Escondida and Antamina supports our expectation of delivering production in the upper half of FY26 group copper guidance,” Mr Henry said.“We continue to make steady progress across our copper growth program, consistent with our focus on long-life, high-quality copper supply and disciplined capital allocation.“During the quarter we submitted a permit application for Escondida’s new concentrator and Resolution Copper achieved a key milestone, allowing the project to progress drilling required to complete its mine design and feasibility study.“Our balance sheet remains strong, and in the last month we have realised ~US$4.8 bn by completing the Antamina silver streaming transaction and finalising the divestment of Carajás, as well as cash received in relation to the earlier divestment of Blackwater and Daunia.“Our centralised procurement capability and our low-cost operations have positioned us advantageously in the face of industry wide pressure on the cost of energy and consumables as a result of the conflict in the Middle East.”Looking ahead, Brandon Craig will assume the role of chief executive from July 1.

Coal slumps to record low as renewables supply majority of NEM power Coal-fired generation for the National Electricity Market (NEM) fell to an all-time quarterly low, down 4.6% year-on-year, as renewables account for a record 52.4% of total energy needs during Q4 CY25.Australian Energy Market Operator’s (AEMO) latest Quarterly Energy Dynamics report showed average prices of $50/MWh for the NEM, a 43% decrease from the previous quarter.The quarter saw strong growth in renewable and storage output, with wind generation up 29%, grid scale solar up 15% and battery discharge nearly tripling to an average of 268MW, supported by 3,796MW of new battery capacity added since late 2024.AEMO policy and corporate affairs executive general manager Violette Mouchaileh says the quarter marked a significant milestone for Australia’s energy transition.“This is a landmark moment for the NEM. For the first time, renewables and storage supplied more than half of the system’s energy needs for a full quarter,” she said.“It reflects years of sustained investment and demonstrates that more wind, solar and battery capacity in the system reduces reliance on higher cost coal and gas generation, placing sustained downward pressure on wholesale electricity prices.”Rooftop solar hit an all-time quarterly high of 4,407MW (up 8.7%), reducing daytime operational demand and contributing to battery charging while new minimum operational demand records were set for the NEM (down 4% to 9,666MW), Victoria (1,287MW), Tasmania (678MW) and South Australia (-263MW).The East Coast Gas Market saw a 3% reduction in total demand, largely driven by lower liquefied natural gas (LNG) export requirements in Queensland.Many of the trends seen in the NEM were also reflected in WA’s Wholesale Electricity Market (WEM), with renewable and storage generation reaching new highs.Increased renewable and battery generation placed downward pressure on wholesale energy prices — driving a 32% drop — and contributed to a reduction in both coal and gas-fired output, which fell 5.8% and 16.4%, respectively.WA’s domestic gas market also saw consumption fall 9.3% during the quarter.WA Energy and Decarbonisation Minister Amber-Jade Sanderson says AEMO’s report reflects the progress made to support new investments in renewable generation and battery storage."Backed by gas, this will see the lowest cost energy mix that will drive WA's clean energy future,” she said."The Government will continue to pursue the sensible and pragmatic policies needed to build on these outstanding results — to deliver affordable and reliable energy for WA households and businesses."

Diversification will keep major iron ore mining houses profitable, but waning Chinese demand is likely to push smaller producers out of the market, a new S&P Global report finds.

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