Core advances Finniss restart with $50m NRW contract

Fortescue (ASX: FMG) expects to save US$100m in fossil fuel costs next year as it fast-tracks its delivery of a fully integrated green energy grid. Unlike other large renewable hubs, which feed intermittently into national or other power systems, Fortescue’s off-grid system is expected to be the largest of its kind dedicated to decarbonising major industry. Fortescue anticipates the 290MW of installed renewable capacity to meet the fixed energy requirements of its ore processing facilities, enabling daytime “green processing” across its Pilbara operations, by early 2027. The system is expected to ramp up to power all of Fortescue’s operations for 24-hour periods completely without fossil fuels by the end of 2027 — well ahead of the companies previous Real Zero by 2030 target. Fortescue is expecting full completion of its Pilbara green grid by the end of 2028, which includes 1.2GW of solar capacity, more than 600MW of wind generation and 4-5GWh of battery energy storage. Fortescue says the deployment of its accelerated green grid infrastructure timeline has commenced within its approved decarbonisation budget.  At the completion of its decarbonisation program, Fortescue expects to demonstrate that eliminating fossil fuels is not only achievable but economically superior by achieving a further reduction in C1 unit costs of at least US$2 - 4/wmt. Fortescue sees a clear pathway to expand its green energy system by a further approximately 2GW of power generation capacity, firmed with 4GWh of advanced batteries. This would be enabled by Fortescue’s proprietary know-how, patented technologies and exclusively developed AI, and is expected to be delivered for less than US$2.5b.  The company anticipates this capacity could be progressively delivered over an 18- month timeframe — an unprecedented delivery of firmed energy generation in speed to market, capital costs and operating costs. The company has also marked another major operation milestone with the shipment of its 2.5 billionth tonne of iron ore. 

BHP’s Canadian potash bill hits $12.5b after second cost reset BHP (ASX: BHP) has lifted the forecast cost of Jansen Stage 1 to $12.5b (US$8.4b), up from the initial $8.4b ($US5.7b) estimate in August 2021.The increase follows a July 2025 budget update which put the cost in the $10.4-$11b (US$7b-7.4b) range. At the time, BHP said the cost increases had been driven by inflationary and real cost escalation pressures, design development and scope changes and lower productivity outcomes.BHP says the latest uplift has been driven by construction hours and materials that were not included in previous estimates.First production has reverted to the original schedule and is now expected in mid CY27.The miner expects to update the market on the investment expenditure estimate for Jansen Stage 2 in Q4 FY26.BHP says the project has the potential for two additional expansions to reach an ultimate production capacity of 16-17mtpa.In other commodities, BHP saw strong operational performance and guidance upgrades for H1 FY26.BHP has increased its FY26 production guidance range for copper to 1900kt – 2000kt, with the miner hoping to capitalise on a 32% increase in copper prices.BHP chief executive Mike Henry says the company is investing for the decade ahead, with a significant copper growth pipeline and a pathway to about 2mt of attributable copper production in the 2030s.“We have increased FY26 group copper production guidance off the back of stronger delivery across our assets,” he said.“Our flagship copper operation, Escondida, achieved record concentrator throughput and we have increased the FY26 production guidance range.“Antamina has also lifted its production guidance, and Spence and Copper SA are tracking to plan, with Copper SA achieving record refined gold output.”In iron ore, WAIO achieved record H1 FY26 production and shipments despite ongoing negotiations with China Mineral Resources Group (CMRG).Volumes from Samarco increased as a result of stronger performance at the second concentrator following ramp up, and higher feed grades and recoveries.BHP’s steelmaking coal production in Q2 FY26 was down 12% from Q1 due to ongoing geotechnical challenges impacting underground performance and higher rainfall which impacted stripping.

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

Rio and Glencore at it again with mega merger talks  Mining majors Rio Tinto (ASX: RIO) and Glencore have confirmed they have entered preliminary takeover discussions for a merger that could create the world’s largest resources company.This is not the first time Rio and Glencore have been in merger negotiations. In 2024, discussions between the companies were unsuccessful due to valuation, leadership and cultural differences after Glencore sought a merger ratio of about 40%, implying a premium of more than 25% based on valuation at the time, and pushed for chief executive Gary Nagle to lead the combined company.  If successful, the merger would be the latest major transaction seen by the sector following last year’s Anglo American $85b merger and acquisition with Canadian copper miner Teck Resources.  The current preliminary discussions are exploring possible combinations of some or all of the businesses, which could include an all-share merger between the companies. Copper appears to be the focal point of the merger as Rio moves towards becoming a global copper leader and acquiring Glencore’s substantial copper assets, including its Mount Isa operations in Queensland, aligns strategically with this shift. This news is the latest in a wave of copper acquisitions as companies around the world look to take advantage of growing global demand and soaring prices. Rio has been advancing its copper portfolio, including ramping up operations at Oyu Tolgoi in Mongolia and pushing progress at Resolution Copper in the US. Rio expects to produce about 870,000t of copper in FY26, underpinned by production at its Oyu Tolgoi — which is anticipated to reach peak production of 500,000tpa in its lifetime — as well as its copper assets across the Americas.  Glencore’s copper outlook for FY26 is almost identical, with production expected to reach between 810,000 - 870,000t, and has a bullish growth outlook of 1.6mtpa by 2035.  Despite the shift in focus to copper, there is little synergy between the two miners' current operations — with iron ore forming the backbone of Rio’s business and Glencore remaining one of the world’s largest coal producers. Considering Rio unloaded the last of its coal assets in 2018 following investor pressure, how Glencore’s significant coal assets will align with Rio’s future is yet to be determined.  Though there is no certainty that an agreement will be reached, Rio has until February 5 to make a formal offer to Glencore.