BHP record copper output reaches 2mn t as Escondida leads

BHP

BHP record copper output hit 2mn tonnes in FY2024-25, up 8.1pc year on year. The result landed at the top of guidance, underscoring operational resilience. As a result, BHP maintained FY2025-26 guidance at 1.8mn-2mn t. BHP record copper output reflects stronger grades at Escondida and disciplined throughput. Meanwhile, the miner flagged grade normalization ahead.

Escondida drives gains; grades normalize next year

Escondida delivered 1.3mn t, its best in 17 years, lifting group performance. Higher ore grades averaged 1.02pc versus 0.88pc last year. However, grades slipped in April-June and are guided to 0.85pc in FY2025-26. Therefore, BHP plans to offset with higher concentrator throughput and stable maintenance. The company kept Escondida’s 1.2mn-1.3mn t guidance unchanged.

Pampa Norte produced 268,000t, at the top of its range, led by Spence cathodes. Spence cathode output rose 12pc to 117,000t on higher stacked feed grades. However, weaker concentrator feed grades will trim 2025-26 guidance to 230,000-250,000t. The Cerro Colorado site remains in care and maintenance, limiting upside.

Regional performance and outlook for FY2025-26

Copper South Australia produced 315,900t, clipped by an October power outage. Even so, second-half output rebounded 18pc to 171,200t on improved recoveries. The operation set a quarterly record of 92,100t in April-June. Guidance stands at 310,000-340,000t for FY2025-26.

Antamina contributed 119,000t, down 17pc on planned lower grades and throughput. BHP guided Antamina to 120,000-140,000t next year as grades stabilize. The Carajás complex added 9,400t, providing optionality across Brazil. Altogether, BHP record copper output strengthens global supply during tight markets.

The Metalnomist Commentary

BHP’s mix of grade management and throughput discipline stood out this year. Watch Escondida’s grade drift and Spence’s concentrator feed as key swing factors. If guidance holds, sustained capex and steady recoveries should anchor margins despite volatility.

ASM heavy rare earth metal sales: first Dy and Tb shipments to Neo

ASM(Australian Strategic Materials)

ASM heavy rare earth metal sales begin with first Dy and Tb shipments to Neo. ASM heavy rare earth metal sales also include 10t of NdPr metal. The partners signed a 12-month framework for future ASM heavy rare earth metal sales.

Deal scope and product mix

ASM shipped 2kg Dy and 2kg Tb from its South Korea metallisation plant. It also sold NdPr metal, bringing Neo purchases to 29t to date. Neo will buy light and heavy rare earth metals for magnet plants. Neo will supply gallium to support ASM's alloy production. The parties agreed to toll NdPr, Dy, and Tb products.

Strategy, integration and Dubbo update

ASM is advancing an integrated model across metals, alloys, and mining. Dubbo's updated study cut forecast capex by A$900mn to A$740mn. Therefore, capital intensity improves for future feed to Korea and beyond. Meanwhile, heavy rare earth supply remains tight for EV traction magnets. This deal diversifies Dy and Tb sources for Western magnet supply chains. Execution depends on stable metallisation yields and logistics efficiency. As a result, OEMs gain diversified NdFeB magnet feed with traceable origin.

The Metalnomist Commentary

ASM’s early Dy and Tb sales validate its heavy rare earth capability. Watch contract conversion beyond the 12-month framework and Dubbo financing steps. Pricing power will hinge on magnet demand and Chinese export dynamics.

Hillgrove antimony project secures permit for 2026 start

Larvotto Resources

Permit clears path to 2026 production

Larvotto Resources has received approval in New South Wales to continue mining and processing at the Hillgrove antimony project. The decision authorizes operations and provides a clear pathway to first production in 2026. The approval followed regulatory review, positioning the company to commission and ramp up the mine under existing consents.

Hillgrove’s development is supported by established infrastructure and a definitive feasibility study that confirms production planning. The company emphasizes the project’s readiness and its role as a near-term supplier in the global antimony market.

Scale, market impact, and de-risking

The project is forecast to supply about 7% of global antimony demand once steady production begins. Hillgrove represents Australia’s largest known antimony deposit, giving it both national and international significance. Production is projected to average 5,696 tonnes per year in the first five years, then 4,878 tonnes annually for the remainder of its life.

Larvotto has secured a binding seven-year offtake agreement with Wogen Resources for antimony concentrate. The deal includes prepayment support, strengthening the project’s liquidity and reducing marketing risk during ramp-up. This ensures stable sales channels in a volatile critical minerals market.

Strategic supply considerations add further importance. With antimony classified as a critical raw material in major economies and export controls tightening in China, new Western supply sources like Hillgrove will play an increasingly pivotal role in global trade flows.

The Metalnomist Commentary

This approval advances Hillgrove from planning to execution, with offtake agreements significantly reducing risk. If production begins on schedule in 2026, the project could emerge as a key non-Chinese supplier and a benchmark reference for global antimony pricing.

Lynas produces terbium oxide at Malaysian plant

Lynas Rare Earths

Lynas expands rare earth production capabilities

Australian rare earths producer Lynas Rare Earths has achieved a major milestone by producing terbium oxide at its Malaysian facility. The product was manufactured using the plant’s 1,500 t/yr heavy rare earth separation circuits, commissioned earlier this year. The same circuits previously delivered separated dysprosium in May, making Lynas the first producer of separated heavy rare earths outside China.

This breakthrough positions Lynas as a critical supplier in global rare earth markets. The company plans to broaden its portfolio to include dysprosium, terbium, holmium concentrate, and unseparated samarium/europium/gadolinium, alongside mixed heavy rare earth products. The expansion comes amid rising supply chain concerns, as US and European automakers have warned that Chinese export restrictions could disrupt production lines.

Strategic feedstock and future US capacity

Lynas sources feedstock for its Malaysian plant from the Mount Weld mine and Kalgoorlie processing plant in Western Australia. However, it is also exploring new supply routes, signing an agreement in May with Malaysia’s Menteri Besar Investment Agency to purchase mixed rare earth carbonates from developing ionic clay deposits.

In parallel, Lynas is constructing a rare earth production plant in the US with similar capabilities to its Malaysian site. Once operational, the facility is expected to produce 2,500–3,000 t/yr of heavy rare earths and 5,000 t/yr of light rare earths. The project received funding through a 2019 US presidential directive under the Defence Production Act, highlighting the material’s importance to national security and industrial resilience.

The Metalnomist Commentary

Lynas’ production of terbium oxide is a strategic leap for non-Chinese supply chains. By expanding heavy rare earth output in Malaysia and developing US-based capacity, the company is strengthening Western resilience in critical minerals. These moves directly address growing concerns over Chinese export controls and highlight Lynas’ role as a pivotal global supplier.

MTM and Meteoric partner on rare earths processing technology

MTM Critical Metals

MTM brings Flash Joule Heating to Brazil’s Caldeira Project

Australian metal recovery firm MTM Critical Metals has partnered with Meteoric Resources to process mixed rare earth carbonate from the Caldeira Rare Earth Project in Brazil. The collaboration follows MTM’s successful proof-of-concept work using its Flash Joule Heating (FJH) process, which concentrates high-value rare earths such as neodymium, praseodymium, dysprosium, and terbium while separating out lower-value lanthanum and cerium.

The Caldeira Project in Minas Gerais is estimated to host 1.5bn tonnes of total rare earth oxides, making it one of the largest undeveloped resources globally. Meteoric already has a supply agreement with Ucore Rare Metals for at least 3,000 t/yr of neodymium, praseodymium, dysprosium, and terbium, positioning the project as a potential cornerstone of global magnet supply chains.

Broader applications of MTM’s processing technology

The FJH process represents a fast and easily deployable alternative to traditional solvent extraction, according to MTM. The company also employs the technology for the recovery of antimony and gallium, expanding its role in processing diverse critical minerals.

Meteoric’s involvement with MTM highlights Brazil’s growing importance in rare earths, as nations look to reduce dependence on Chinese exports. By combining innovative processing with large-scale resources, the partnership could redefine supply security for critical materials essential in electric vehicles, wind turbines, and defense applications.

The Metalnomist Commentary

The MTM–Meteoric partnership demonstrates how technology-led solutions are reshaping rare earths supply chains. If successful, the FJH process could become a scalable alternative to conventional separation, aligning with global efforts to secure diversified, lower-cost, and sustainable sources of rare earth materials.

Australian Government Loan Supports Butcherbird Manganese Mine

Element 25

Butcherbird Manganese Mine Expansion Gains Federal Backing

The Australian government has approved a A$50mn ($32mn) loan package to support Element 25’s Butcherbird manganese mine expansion. The financing consists of a A$42.5mn debt facility and a A$7.5mn overdraft, enabling the company to triple annual concentrate output from 365,000 tonnes to 1.1mn tonnes.

Western Australia’s state government granted project approval in March, allowing Element 25 to target a 2026 production start. However, the company has yet to secure all required capital and continues discussions with potential partners. Element 25 may also raise funds through offtake agreements, royalty streams, and prepayment deals.

Strategic Supply for US and Global Markets

The Butcherbird manganese mine expansion will strengthen Element 25’s role in the global manganese supply chain. The company plans to channel concentrate to its planned 135,000 t/yr manganese sulphate monohydrate refinery in the US, with additional output directed toward steelmakers worldwide.

The US government has already backed Element 25’s refinery project with a $166mn grant, reflecting Washington’s strategy to reduce reliance on Chinese critical minerals supply. Automakers General Motors and Stellantis have also pledged to fund the refinery, ensuring long-term offtake for battery-grade manganese products essential for electric vehicles.

The Metalnomist Commentary

Element 25’s Butcherbird expansion underscores how financing frameworks are reshaping manganese supply chains. With strong support from both Australian and US governments, the project highlights the strategic importance of manganese for steelmaking and battery manufacturing. Partnerships with automakers further illustrate how downstream industries are actively securing upstream resources in the race toward electrification.

Rio Tinto Seeks Support for Australian Aluminium Smelter

Australian Al smelter

Power Costs Challenge Aluminium Operations

Rio Tinto is in talks with both the Australian federal government and the New South Wales (NSW) state government to secure support for its 600,000 t/yr Tomago aluminium smelter. The UK-Australian producer is renegotiating power purchase agreements to reduce costs, as energy expenses continue to rise across the state. Tomago accounts for about 12% of NSW’s total power use and plays a key role in grid stabilisation by adjusting production in line with electricity demand.

Officials confirmed discussions are underway, with NSW premier Chris Minns describing them as commercial negotiations. Industry and innovation minister Tim Ayers added that the government recognises Tomago’s strategic role but did not outline specific intervention measures. Meanwhile, energy minister Penny Sharpe acknowledged that soaring energy costs are straining many of the state’s energy-intensive industries.

Federal Incentives and Industry Outlook

Australia’s federal government has committed A$2bn ($1.3bn) under a low-emission production tax credit scheme, which will take effect in the 2028-29 fiscal year. The initiative aims to sustain aluminium production while encouraging cleaner processes. Rio Tinto has welcomed the scheme, calling it an important step toward maintaining Australia’s competitiveness in global aluminium markets.

Until the scheme is active, however, Rio Tinto must navigate high energy costs that threaten the viability of large-scale smelting operations. The company’s negotiations with power suppliers and government stakeholders will be critical in determining whether the Tomago smelter remains sustainable over the coming years.

The Metalnomist Commentary

Rio Tinto’s situation highlights the vulnerability of aluminium producers to volatile energy markets. While Australia’s tax credit scheme offers long-term relief, the immediate challenge is bridging the gap until 2028. The outcome at Tomago could set a precedent for how governments and power companies support energy-intensive industries under decarbonisation pressures.

PLS Boosts Pilgangoora Lithium Resources by 23% Amid Expansion Plans

Australia’s PLS

Higher Grade and Tonnage Strengthen Global Position

Pilbara Minerals (PLS) has expanded the Pilgangoora lithium resources by 23%, driven by a 10% rise in tonnage and a 12% improvement in grade. This boost elevates Pilgangoora’s standing to match the resource scale of Australia’s Greenbushes, the world’s largest hard-rock lithium mine.

Exploration since September 2023 added 39mn tonnes to measured, indicated, and inferred resources at the Western Australia site. As of 2025, Pilgangoora’s total mineral resource now stands at 446mn tonnes grading 1.28% Li₂O and 122ppm Ta₂O₅. Despite pausing exploration in March 2025 due to cost-cutting, PLS has identified a target of 76–102mn tonnes, indicating further growth potential.

Expanding Spodumene Production Capacity

Pilgangoora’s current nameplate capacity is 680,000 t/yr of spodumene, with Q1 2025 production at 125,000 tonnes—down from 188,200 tonnes in Q4 2024. The P1000 project is set to lift capacity to 1mn t/yr by Q3 2025, while the proposed P2000 project could double output to over 2mn t/yr within six years.

However, weaker market conditions may pressure higher-cost Australian spodumene producers to cut output. PLS’s large-scale, higher-grade reserves could provide a competitive advantage in maintaining production and market share during challenging pricing cycles.

The Metalnomist Commentary

PLS’s expansion at Pilgangoora reinforces Australia’s role as a dominant supplier of hard-rock lithium to global EV and battery markets. With both grade and tonnage growth, PLS is positioned to weather market volatility better than many peers. Long-term, the success of the P2000 project could transform Pilgangoora into one of the largest spodumene producers worldwide.

Lynas Secures Malaysian Rare Earth Feedstock for Processing Plant

Lynas Rare Earths

Lynas Rare Earths has signed a groundbreaking Malaysian rare earth feedstock agreement with Kelantan state. The Australian producer partnered with Menteri Besar investment agency for ionic clay supplies. This strategic deal ensures Malaysian rare earth feedstock for Lynas's local processing operations.

Heavy Rare Earths Supply from Kelantan Deposits

The agreement covers mixed rare earth carbonates from Malaysia's ionic clay deposits. These deposits contain high concentrations of valuable heavy rare earths. Meanwhile, Lynas became the first non-Chinese separated heavy rare earths producer recently. The company now produces dysprosium and will add terbium production in June.

Both parties will collaborate on Malaysia's broader rare earth sector development. However, specific supply volumes remain undisclosed pending final negotiations. The feedstock delivery begins once Kelantan mining operations commence. Currently, Lynas sources carbonate from its Australian Mount Weld mine exclusively.

Strategic Shift in Southeast Asian Rare Earth Processing

This partnership transforms Malaysia's rare earth industry positioning significantly. Malaysia considered export bans to boost domestic processing capabilities last year. Therefore, this deal aligns with national downstream development objectives perfectly. Lynas gains critical supply chain diversification beyond Australian sources.

The Malaysian rare earth feedstock agreement strengthens regional processing independence from China. Furthermore, ionic clay deposits offer superior heavy rare earth concentrations. As a result, Lynas can expand specialty rare earth production capacity. This development positions Malaysia as a global rare earth processing hub.

The Metalnomist Commentary

Lynas's Malaysian feedstock agreement represents a masterful supply chain strategy combining local sourcing with established processing infrastructure. This partnership accelerates Malaysia's rare earth ambitions while giving Lynas competitive access to high-value heavy rare earth deposits. The deal exemplifies successful resource nationalism that benefits both foreign investors and host countries.

Harmony Gold Enters Copper Market with $1bn CSA Mine Acquisition

Harmony Gold

Strategic Push into Copper Solidifies Harmony’s Position as a Diversified Producer

Harmony Gold has finalized a $1.03 billion deal to acquire MAC Copper, the owner of the CSA copper mine in New South Wales, Australia. The acquisition marks a major step in Harmony’s copper ambitions and strengthens its diversification beyond gold. The CSA mine produced approximately 41,000 tonnes of refined copper in 2024 and is projected to boost output beyond 50,000 tonnes by 2026 once mining at the adjacent Merrin deposit begins.

The acquisition of MAC Copper complements Harmony’s earlier foray into the copper sector through the 2022 purchase of the Eva copper project in Queensland. The Eva project is expected to receive final investment approval in 2025, with construction planned for 2026 and production commencing by fiscal year 2028. Harmony has set a production target of 60,000 tonnes per year for Eva, which, combined with CSA's output, will raise its total refined copper capacity to over 100,000 tonnes annually.

This expansion aligns with global trends toward energy transition metals. Copper is central to clean energy infrastructure, and miners are aggressively repositioning to meet the anticipated surge in demand. By acquiring high-quality Australian assets, Harmony Gold secures long-term leverage to copper markets, enhances its project pipeline, and enters the global base metals competition with strong operating potential in tier-one jurisdictions.

The Metalnomist Commentary

Harmony Gold’s aggressive move into copper highlights a broader trend among gold miners diversifying into strategic base metals. As copper demand rises from electrification and renewables, securing scalable, low-risk assets in politically stable regions becomes a competitive imperative.

South32 to Study Steam Electrification at Worsley Alumina Refinery

South32 Alumina emissions

The Australian miner aims to cut emissions using electric steam solutions at its largest alumina facility.

South32 to Study Steam Electrification at Worsley Alumina Refinery

South32 has launched a pre-feasibility study to explore steam electrification pathways at its 3.7mn t/yr Worsley alumina refinery in Western Australia. The study is supported by A$4.4mn ($2.85mn) in funding from the Australian Renewable Energy Agency (Arena) and will assess four decarbonization options, including mechanical vapour recompression and electric boilers.

The alumina industry is Australia’s largest consumer of process heat and emitted 15mn t of CO2e in 2021, with 70% of these emissions resulting from fossil-fuel-powered steam generation. South32 has already shifted part of Worsley’s energy mix from coal to gas due to local coal supply issues, but steam electrification could drive further emissions reduction.

South32 aims to reach net-zero greenhouse gas emissions by 2050 and reduce operational emissions by 50% by 2035 from 2021 levels. Arena’s funding aligns with its Industrial Transformation Stream program, designed to help existing industrial facilities lower emissions while boosting technological readiness. Notably, Worsley produced 3.18mn t of CO2e in FY2023–2024, earning 117,189 safeguard mechanism credits (SMCs) for staying below its emissions baseline.

The Metalnomist Commentary

South32’s Worsley decarbonization study marks a critical step in Australia’s broader industrial emissions strategy. As steam generation accounts for the majority of alumina refining emissions, electrification could set a precedent for the global sector’s low-carbon transition.

Rio Tinto Expands Amrun Bauxite Capacity with Kangwinan Project

Kangwinan

Amrun Mine Expansion Aims to Offset Upcoming Closures

Rio Tinto plans to boost its Australian bauxite output by developing the Kangwinan project alongside its Amrun bauxite mine. The expansion will support long-term supply as the Gove and Andoom mines are scheduled to shut around 2030. Rio Tinto confirmed the final investment decision for Kangwinan is expected in 2026, with production starting in 2029.

Kangwinan will add up to 20mn t/yr, complementing the 23mn t/yr already produced at Amrun in northern Queensland. Earlier this year, Rio Tinto ran Amrun above capacity, achieving 15mn t in Q1 2025. The expansion includes port upgrades and will help replace output lost from the 13mn t/yr Gove and Andoom mines.

ESG Compliance and Renewable Energy Integration

Rio Tinto is under growing pressure to meet Australia's reformed safeguard mechanism compliance targets. Weipa operations emitted 270,463t CO₂e in 2023–24, surpassing the baseline and prompting surrender of 14,025 carbon credits. To cut emissions, Rio Tinto launched a solar and battery project at Amrun, aiming to reduce diesel electricity by 37%.

The renewable system is projected to lower Amrun’s carbon output by 14,000t CO₂e annually. This aligns with Rio Tinto's broader ESG and decarbonization commitments across its global mining operations.

The Metalnomist Commentary

Rio Tinto’s expansion at Amrun reinforces Australia's role in global bauxite supply amid tightening ESG mandates. The Kangwinan project reflects a strategic pivot toward cleaner, long-term operations as legacy mines near closure. Bauxite's role in decarbonized aluminum production is becoming increasingly vital in global energy transition strategies.

Australia Critical Mineral Reserve Sales Target Strategic Partners Amid Trade Disruptions

Australia Critical Mineral

Australia critical mineral reserve sales emerged as a cornerstone strategy following resources minister Madeline King's announcement of the A$1.2 billion ($770 million) reserve plan targeting strategic partners including the US, EU, Japan, and South Korea. The Australia critical mineral reserve sales initiative aims to generate government revenue while enabling the country to handle trade and market disruptions, particularly in response to recent Chinese export controls on rare earths, tungsten, graphite, germanium, and gallium affecting global supply chains.

Strategic Partnership Framework Addresses Geopolitical Supply Risks

Australia critical mineral reserve sales will focus on offtake agreements with trusted allies while maintaining flexibility for temporary stockpiling based on strategic and commercial considerations. The reserve design responds directly to Chinese mineral and intellectual property export controls that have disrupted global critical materials supply chains. King's announcement emphasized the program's role in managing trade disruptions while strengthening partnerships with democratic nations seeking supply chain diversification.

Meanwhile, the reserve will support domestic mining projects including rare earths and tungsten operations currently producing in Australia. Victory Metals recently produced mixed rare earth carbonates containing 38 grams per tonne of gallium in March, demonstrating domestic production capabilities for restricted materials. The government's approach combines strategic stockpiling with commercial offtake arrangements to maximize both security and revenue objectives.

Advanced Projects Position for Government Offtake Partnerships

However, Australia's critical mineral project pipeline presents substantial opportunities for reserve partnerships with six rare earth and four graphite projects in advanced feasibility stages as of October 2024. These projects await financial close decisions and may benefit significantly from Australian government offtake agreements providing revenue certainty. The Office of the Chief Economist data indicates substantial near-term production potential across multiple critical mineral categories.

Therefore, the joint public-private sector taskforce will design specific guidance around offtake pricing and operational frameworks before the 2026 program launch. This collaborative approach ensures commercial viability while achieving strategic objectives for supply chain resilience. The taskforce structure enables industry input on practical implementation challenges while maintaining government oversight of strategic priorities.

Policy Response Demonstrates Proactive Supply Chain Management

Furthermore, the Labor party's reserve pledge on April 4th directly responded to US President Trump's "Liberation Day" tariff announcement, demonstrating rapid policy adaptation to changing global trade dynamics. Australia has consistently supported critical mineral developers since 2022 through mineral tax credits, loans, and grants totaling substantial government investment. The reserve represents the latest evolution in comprehensive critical minerals policy development.

As a result, Australia positions itself as a reliable alternative supplier for critical materials essential to clean energy, defense, and technology applications. The revenue-generating model ensures program sustainability while strengthening strategic partnerships with democratic allies. This approach creates competitive advantages for Australian producers while addressing global supply chain vulnerabilities exposed by geopolitical tensions.

The Metalnomist Commentary

Australia's critical mineral reserve initiative represents sophisticated strategic thinking that combines commercial revenue generation with geopolitical supply chain management, positioning the country as a trusted alternative to Chinese-dominated critical materials markets. The program's emphasis on partnerships with democratic allies while supporting domestic project development demonstrates how resource-rich nations can leverage mineral endowments for both economic and strategic advantage in an increasingly fragmented global trade environment.

South32 Gemco Manganese Exports Resume After Cyclone Megan Recovery

South32

South32 Gemco manganese exports restarted as the Australian metal producer shipped its first ore cargo since early 2024 from the Northern Territory mine. The South32 Gemco manganese exports resumption follows extensive recovery operations after Cyclone Megan damaged the export wharf and flooded mine areas in March 2024, forcing a four-month suspension that disrupted global manganese supply chains and affected key customers including GFG Alliance's Tasmania ferromanganese plant.

Production Recovery Targets Pre-Cyclone Output Levels

South32 Gemco manganese exports began with the loading of 56,606 tonnes aboard the Singapore-flagged Stenia Colossus on May 19th, bound for Tianjin, China according to marine analytics firm Kpler. A second shipment of 54,078 tonnes will depart on the Panamanian-flagged Loch Crinan on May 28th, demonstrating operational momentum recovery. These initial shipments mark the end of a 15-month export hiatus that severely impacted Australian manganese supply to Asian steel markets.

Meanwhile, South32 plans production ramping at Gemco's 6 million tonne annual nameplate capacity facility throughout the 2025-26 financial year. The company achieved 5.9 million tonnes production in 2022-23, the last complete year before Cyclone Megan disrupted operations. Northern Territory government projections indicate 5 million tonnes expected production over the coming year, though South32 has not released official 2025-26 guidance.

Customer Supply Chain Disruptions Highlight Market Dependencies

However, the extended Gemco shutdown created severe supply chain disruptions for downstream customers dependent on Australian manganese ore. GFG Alliance's Liberty Bell Bay ferromanganese plant in Tasmania moved to limited operations on May 19th due to manganese ore supply shortages. This operational reduction demonstrates the critical importance of Gemco's production for regional ferromanganese manufacturing capabilities.

Therefore, the export resumption addresses urgent supply needs across Asia-Pacific steel and ferroalloy markets that experienced significant manganese ore shortages during Gemco's closure. Chinese steel mills particularly depend on Australian manganese imports for steel production, making Gemco's recovery essential for regional supply chain stability. The mine's strategic location in Northern Territory provides efficient shipping access to major Asian industrial centers.

Infrastructure Recovery Enables Full Operational Restart

Furthermore, South32 completed extensive infrastructure repairs including export wharf reconstruction and comprehensive mine dewatering operations during January-March 2025. These recovery investments ensure sustainable long-term operations while improving resilience against future extreme weather events. The company's commitment to full production restoration demonstrates confidence in manganese market fundamentals and customer demand recovery.

As a result, Gemco's operational restart strengthens Australia's position as a critical manganese supplier to global steel industries while reducing supply chain vulnerabilities exposed during the extended shutdown. The successful recovery operations establish operational precedents for managing extreme weather impacts on mining infrastructure. Market participants welcome the supply restoration as global steel production continues recovering from pandemic-related disruptions.

The Metalnomist Commentary

The resumption of South32's Gemco manganese exports illustrates both the vulnerability of critical mineral supply chains to extreme weather events and the interconnected nature of global steel production networks. The 15-month disruption's impact on downstream ferromanganese producers like Liberty Bell Bay demonstrates how single-mine shutdowns can cascade through entire industrial sectors, highlighting the need for greater supply chain diversification and resilience planning in critical minerals markets.

IGO to Sell Forrestania Project While Retaining Nickel and Lithium Rights

IGO

IGO restructures Forrestania project with Medallion Metals acquisition deal

Australian critical minerals producer IGO plans to sell its Forrestania project to Medallion Metals while retaining key resource rights. The deal, expected to finalize by late 2025, gives Medallion 100% ownership of the Forrestania site. However, IGO will continue holding exclusive nickel and lithium rights for future exploration and mining at the location.

Medallion secures gold and copper rights with added royalty commitment

Medallion Metals announced the agreement today, confirming it will manage copper and gold operations at Forrestania. The company will pay IGO a 1.5% royalty on gold production and assume full site rehabilitation obligations. The non-binding deal, first negotiated in August 2024, is expected to become binding by this August. Forrestania’s gold and copper assets provide strong upside potential for Medallion’s growing metals portfolio.

IGO transitions amid low nickel prices and depleted ore reserves

IGO ceased nickel production at Forrestania in September 2024 due to falling nickel prices and ore depletion. The company shipped its last nickel concentrate in the December quarter, closing with a total of 7,571 tonnes produced for FY 2023–2024. Despite the sale, IGO’s decision to retain nickel and lithium rights at the Forrestania project underscores its long-term focus on strategic battery metals.

The Metalnomist Commentary

IGO’s decision to divest Forrestania’s base-metal operations while keeping nickel and lithium rights reflects a targeted pivot toward future-facing battery minerals. Medallion’s takeover aligns with rising interest in copper and gold amid global energy transitions and investor demand for diversified metals exposure.

ASM Rare Earth Metals Shipments Highlight Non-China Supply Strategy

ASM(Australian Strategic Materials)

ASM Expands NdPr and NdFeB Deliveries from Korea

Australian Strategic Materials (ASM) advanced its role as a key rare earth metals supplier by delivering 10 tonnes of NdPr metal to Neo Performance Materials in Q1. The shipments came from ASM’s metallisation plant in South Korea. In April, ASM will deliver four more tonnes to Neo and 500kg to a European firm. As one of the few non-Chinese producers, ASM rare earth metals are gaining traction in the global supply chain.

Strategic Sales and Partnerships Across Regions

During the first quarter, ASM also supplied 400kg of neodymium-iron-boron (NdFeB) metal to Korea’s KMMI and confirmed a 100kg order with Germany’s GKN Powder Metallurgy. Discussions with additional buyers are underway, expanding ASM’s commercial reach. Meanwhile, development continued at ASM’s Dubbo rare earth project, a key source of feedstock for future metallisation capacity.

U.S. Interest and Geopolitical Tailwinds Support Growth

The U.S. Department of Defense invited ASM to submit proposals for funding a U.S.-based rare earth metallisation plant. These developments reflect growing U.S. efforts to secure critical mineral supply chains amid rising trade tensions with China. ASM publicly supports Australia’s proposed critical mineral reserve, aligning with broader Western strategies to diversify supply.

The Metalnomist Commentary

ASM’s cross-border shipments and U.S. partnership prospects highlight the urgency to diversify away from China in rare earth metals. As tensions rise, ASM’s integrated model positions it well for long-term relevance.

Australia Critical Mineral Reserve Plan Targets Supply Security and Project Support

Australia Critical Mineral

Australia’s Labor government has announced a $720 million plan to establish a national critical mineral reserve by 2026. The Australia critical mineral reserve would include offtake agreements to help projects nearing feasibility but struggling to secure financing. If re-elected in the May 3 election, Labor plans to implement the reserve to strengthen Australia’s position in global supply chains.

Rare Earths and Battery Materials to Benefit from Government Support

The proposed Australia critical mineral reserve will selectively cover minerals from the national critical minerals list, with a particular focus on rare earths. Labor emphasized their importance but did not specify which minerals will be included. According to the Office of the Chief Economist, 25 projects remain stuck at the advanced feasibility stage. Of these, 19 are related to rare earths, graphite, mineral sands, nickel-cobalt, or vanadium—sectors that could benefit directly from government offtake agreements.

The plan also includes the sale of reserves to Australian industries and strategic international partners seeking to diversify away from China. This is in line with broader geopolitical efforts to reshape global critical mineral flows and improve resilience.

Federal and State Incentives Signal Policy Shift in Mineral Strategy

Australia has already introduced a 10% tax credit for mineral processing and refining starting from 2027–28. The federal government has also provided grants and loans to critical mineral projects over the past three years. State-level initiatives like Western Australia's A$150 million lithium support package further highlight policy alignment. WA’s package includes interest-free loans and fee waivers to help lithium producers stay competitive.

The Labor government’s reserve proposal would give Canberra authority to purchase, stockpile, and sell critical minerals, a move reminiscent of U.S. and EU strategies. Prime Minister Anthony Albanese linked the announcement to recent trade tensions, especially in response to former U.S. President Donald Trump's tariff policy update.

The Metalnomist Commentary

Australia’s proposed critical mineral reserve reflects an assertive move to anchor itself in the global energy transition. If implemented, it could reshape investment flows and reduce dependency on volatile private-sector funding cycles, especially for rare earth and battery material projects.

Iluka and RareX Partner on Kenya’s Mrima Hill Rare Earths Project

RareX

Iluka and RareX rare earths partnership

Iluka and RareX rare earths partnership marks a significant step in securing sustainable feedstock for Australia’s Eneabba refinery. Iluka Resources and RareX announced a strategic alliance to develop Kenya’s Mrima Hill rare earth and niobium project, aiming to support Iluka’s downstream processing plans.

The Mrima Hill site, owned by the Kenyan government, may supply critical materials to Iluka’s 23,000 t/yr Eneabba rare earth oxide refinery in Western Australia. The Eneabba refinery is currently under construction, with initial feedstock sourced from Iluka’s domestic concentrate stockpile.

Securing Offtake and Joint Venture Rights in Kenya

Iluka and RareX formed a consortium with plans to operate Mrima Hill as a joint venture with Kenya’s state-owned National Mining Corporation (NAMICO). The deal includes a binding offtake term sheet, granting Iluka exclusive rights to purchase all rare earth and heavy mineral products at a 10% discount.

However, the agreement is contingent on government approval and commercial-scale production. Iluka currently holds a 25% stake in the consortium, and will pay RareX $10 million upon receipt of the mining license.

Expanding Iluka’s Rare Earth Feedstock Strategy

Iluka and RareX rare earths partnership adds international supply diversity to Iluka’s refining roadmap. The Eneabba plant will initially run on a 1 million tonne stockpile but aims to supplement it with external sources like Mrima Hill and Browns Range.

Iluka also signed a rare earth concentrate agreement with Northern Minerals for 30,500 tonnes from the Browns Range project. Additionally, Iluka is developing domestic mining capacity to produce 20,000 t/yr of concentrates in the future.

The Metalnomist Commentary

This Iluka and RareX rare earths partnership reflects growing global urgency to diversify rare earth supply chains beyond China. With government approval, Mrima Hill could become a vital node in Australia’s downstream rare earth production strategy.

Liontown Begins Underground Lithium Mining at Kathleen Valley

Liontown

Kathleen Valley Shifts to Underground Lithium Mining

Australian battery minerals firm Liontown has officially begun underground mining at its Kathleen Valley lithium site. The move marks a strategic transition from open-pit mining, aimed at improving efficiency and long-term resource value.

The first underground ore batch yielded approximately 1,500 tonnes, with trials showing lithia recoveries above 70%. This milestone positions Kathleen Valley as Australia’s only operational underground lithium mine, setting it apart in a competitive sector.

Production Outlook Amid Market Challenges

Liontown projects underground output to reach 500,000 t/yr of spodumene concentrate, targeting 700,000 t/yr by 2030. By mid-2026, the company expects its mill to be supplied entirely from underground output and stockpiles, increasing operational efficiency.

However, facing weak lithium prices, Liontown reduced its broader mine output guidance by 200,000 t/yr, now aiming for 2.8mn t/yr. For H1 2025, production guidance stands at 170,000–185,000 dry metric tonnes, following Q4 2024 output of 88,683 dmt.

Despite market softness, demand from large-scale battery projects — especially in the Middle East — offers optimism. Each project demands up to 20GWh in storage capacity, nearly matching Kathleen Valley’s annual spodumene production.

The Metalnomist Commentary

Liontown’s underground transition reflects a broader trend of resource optimization amid lithium market turbulence. While short-term price pressure persists, demand from global energy storage and EV sectors remains resilient. Underground mining may emerge as a competitive differentiator as supply constraints tighten and end-user quality demands rise.

Aurelia Metals Gains Approval to Triple Copper and Zinc Ore Processing in NSW

Aurelia Metals

Regulatory change enables increased throughput from Federation to Peak, positioning Aurelia Metals for base metal growth

New Permit to Expand Ore Haulage Capacity

Australian metals producer Aurelia Metals has received approval to triple ore processing capacity at its New South Wales operations. Authorities granted consent for the company to move up to 600,000 tonnes per year of ore from its Federation mine to the Peak processing center. This change removes a key bottleneck that had limited haulage to only 200,000 tonnes per year since mid-2024.

The Peak facility extracts zinc, copper, lead, and gold from mixed metal ores. The expanded permit supports Aurelia's ongoing ramp-up at Federation, enabling fuller utilization of its processing infrastructure.

Production Ramps Up Amid Mixed Industry Trends

Between October and December 2024, Aurelia processed 16,500 tonnes of Federation ore, yielding 55 tonnes of copper, 626 tonnes of lead, 1,263 tonnes of zinc, and 502 ounces of gold. The company now plans to increase throughput in 2025, bucking a broader trend of production slowdowns among Australian miners.

While Aurelia expands, other producers are retreating. IGO paused its Forrestania nickel project in late 2024 and announced the Nova mine closure by 2027. Globally, Glencore reduced copper output by 6% in 2024, citing declines in Chile and Peru, and unplanned disruptions in the DRC.

Market Context and Copper Price Volatility

Despite market headwinds, Aurelia’s move aligns with long-term optimism for base metals. The LME copper price has shown wide fluctuations, ranging between $8,620/t and $10,857/t over the past year. As of 27 March 2025, LME copper stood at $9,787/t, reflecting ongoing supply uncertainties and demand outlook tied to green energy investments.

The Metalnomist Commentary

Amid a global pullback in copper and nickel production, Aurelia’s expansion in New South Wales sends a signal of long-term resilience. Strategic processing upgrades—like the Federation-Peak scale-up—could prove vital as volatility defines the next phase of the metals cycle.