WA iron ore operations hit by cyclone and fuel shortages

BHP (ASX: BHP) has confirmed it is no longer considering a takeover offer for Anglo American following preliminary discussions with directors. 

Mineral sands downturn forces $565m Iluka adjustment Critical minerals producer Iluka Resources (ASX: ILU) has flagged a $565m pre-tax hit tied to its mineral sands business as weak demand continues to weigh on prices.The update comes amid renewed policy uncertainty after Reuters reported the Trump administration is stepping back from plans to guarantee price floors for US critical minerals projects, citing funding constraints and the complexity of setting market pricing.Iluka still exceeded its 2025 production guidance, delivering 559kt of zircon, rutile and synthetic rutile while reducing cash costs.Iluka says the FY25 charges comprise two exceptional items: a $350m non-cash impairment and a $215m inventory value reduction.The impairment is centred on Iluka’s mineral sands operations after the company moved in September to suspend production at the Cataby mine and the synthetic rutile kiln 2 (SR2).The suspension, effective December 1, was largely driven by subdued demand for mineral sands and their associated downstream products.Iluka also flagged a 35% reduction in Cataby’s remaining ore reserve with the revised mine life expected to be four years from resumption of mining.Iluka is still progressing its downstream build at Eneabba in WA. Upon commissioning in 2027, Eneabba will be one of the few rare earths refineries operating outside of China.

The Queensland Government has declared the Sugarbag Hill project in north Queensland a prescribed project to fast-track delivery.The $515 million ultra high purity quartz sand project is being developed by High Purity Quartz and is expected to support 600 jobs during construction and 140 ongoing jobs once operational.Ultra high purity quartz is an important material used to make products like semiconductors, specialised glass and equipment needed in advanced manufacturing.Further processing of the critical material is proposed at the Lansdown Eco-Industrial Precinct south of Townsville, with a pilot facility in Stuart and chemical storage at the Port of Townsville with high-quality quartz sand to also be exported through the port.High Purity Quartz chief executive Stuart Jones says the declaration provides certainty for the project.“This declaration allows us to progress project approvals more efficiently and with greater certainty as we move through the detailed feasibility study and engineering stage,” he said.“It recognises the importance of establishing a Queensland based supply of globally scarce ultrahigh purity quartz sand, which is critical for solar PV silicon wafer manufacturing.”Queensland Minister for Natural Resources and Mines Dale Last says the project will create hundreds of new jobs in the construction phase and ongoing operational jobs across the value chain.“With the Queensland resources common user facility and Graphinex’s battery anode hub just down the road, we’re committed to building sovereign capacity right across the critical minerals sector,” he said.“We’re serious about cutting red tape, driving faster approvals and delivering certainty to investors so they can get on with creating local jobs.”Subject to approvals, High Purity Quartz is targeting a final investment decision in early 2027 and commencement of construction in early 2028.

Federal Resources Minister Madeleine King has backed the potential reopening of Tasmania’s Mount Lyell copper mine which has been under care and maintenance since 2014.Mount Lyell, situated near Queenstown on Tasmania’s west coast, began production in 1894 as a copper mine with gold by-products. It is frequently cited as Australia’s oldest continuous mining field with more than $4b worth of metal estimated to be mined from the area.Following two deaths in December 2013, and a third fatality a month later, production was stopped and previous owner Copper Mines of Tasmania (CMT) placed the mine into care and maintenance in 2014.Sibanye-Stillwater acquired the mine in 2021 and recently advised Minister King that the company has completed its feasibility study into best options for re-establishment, with a board decision expected later this year.“The thing about this mine and what is very clear from speaking to Sibanye-Stillwater, is there is a lot in its favour on the reopening: the underground is now in very good shape, a lot of work has been carried out; very, very positive copper and gold prices, a great market, and it's an excellent deposit.” Minister King said in an interview to ABC Hobart Radio.CMT, a wholly owned subsidiary of Sibanye-Stillwater, holds the mining lease for the site including the established infrastructure and underground development.With both gold and copper, reaching record price highs in February 2026, and increased need for copper in establishing Australia’s clean energy future, Minister King has indicated the Federal Government is supportive and willing to assist in restart efforts.“I'll make sure I follow up my department on how we can assist if we need to assist” she said.“They've got plans for the site, but they do have to make sure they get that board approval.“And I'll be getting my department and myself and my office to put our shoulder to the wheel to make sure we can do whatever we can to make sure that happens.”