Mitsui and Itochu Australian iron ore investment strengthens Asian steel supply chains

Australian Iron Ore

The Mitsui and Itochu Australian iron ore investment strengthens long term raw material security for Asian steelmakers. The two Japanese trading houses will acquire a combined 15% stake in the Ministers North iron ore projects from BHP in Western Australia. As a result, they will secure offtake rights from an expected 20mn t/yr operation, pending a final investment decision by June 2026.

This Mitsui and Itochu Australian iron ore investment also deepens long standing partnerships with BHP in the Pilbara. Itochu will hold an 8% stake and targets 1.6mn t/yr of iron ore, mainly for Chinese customers. Mitsui will take a 7% stake and aims to offtake about 1.4mn t/yr, supplying Japan and other Asian markets. Therefore, each firm will align offtake volumes with its equity share, reinforcing stable contractual flows rather than spot exposure.

Ministers North steps in as Yandi successor

The Ministers North project will effectively replace the aging Yandi mine jointly operated by BHP, Mitsui and Itochu. Yandi is scheduled for a gradual production decline and eventual closure, although the final shutdown date remains undisclosed. Therefore, Ministers North functions as a crucial continuity asset, preserving existing rail, port and blending synergies in Western Australia.

Project timing remains tied to a final investment decision scheduled by June 2026. Commercial operations could then ramp up to the envisaged 20mn t/yr run rate. However, the consortium must still navigate cost inflation, permitting timelines and infrastructure coordination with other Pilbara projects. If delivered on schedule, Ministers North will smooth the transition from Yandi without a major gap in supply.

Broader Pilbara strategy behind Mitsui and Itochu Australian iron ore investment

The Mitsui and Itochu Australian iron ore investment also sits within a wider Pilbara growth strategy. Mitsui separately announced a $5.3bn commitment in February to acquire a 40% share in the Rhodes Ridge joint venture. The company aims to start commercial operations there by around 2030, although the final investment decision schedule is still under review.

Together, Ministers North and Rhodes Ridge will anchor Mitsui’s long term iron ore portfolio in Western Australia. Meanwhile, Itochu’s additional stake in Ministers North underpins its iron ore flows to China during a period of changing demand patterns. As a result, the Mitsui and Itochu Australian iron ore investment reinforces Japan’s broader goal of diversified, low risk iron ore sourcing across key Asian markets.

The Metalnomist Commentary

This deal shows how Japanese trading houses quietly rebuild long term security in iron ore rather than chase short term price cycles. By backing Ministers North as Yandi’s successor and supporting Rhodes Ridge, Mitsui and Itochu lock in future Pilbara options while steel demand in Asia matures. Market participants should watch how offtake contracts and quality specifications evolve, especially for blends tailored to China and Japan’s decarbonising steel sectors.

Nyrstar Australian Smelters Face Uncertain Future Without New Funding

Nyrstar

Nyrstar Australian smelters face an uncertain future as the company reviews possible closures or output curtailments at its Port Pirie lead smelter and Hobart zinc smelter. The review comes after interim government rescue funding expired without a second phase being agreed.

Nyrstar Australian smelters received A$135mn in interim support in August last year. The funding was designed to keep the 160,000 t/yr Port Pirie lead smelter in South Australia and the 280,000 t/yr Hobart zinc smelter in Tasmania operating while longer-term solutions were assessed.

Nyrstar Australian smelters are strategically important because they preserve domestic processing capability for base metals and potential critical minerals. But the facilities remain economically challenged by weak commodity pricing, high energy costs and the need for capital investment.

The company, owned by Trafigura, said it is now exploring all options for the two assets. No final decision has been made on closures or production cuts.

Port Pirie and Hobart Test Australia’s Industrial Policy

The Port Pirie and Hobart smelters sit at the centre of Australia’s debate over whether strategic processing capacity should be preserved through public support. Both assets are partway through two-year feasibility studies to diversify output into critical minerals such as bismuth and tellurium.

This diversification is important because traditional lead and zinc smelting margins have been under pressure. Adding critical minerals could improve the strategic value of the facilities and create new revenue streams.

Port Pirie has already started moving in that direction. The first shipment of antimony from a pilot plant was exported in February under the first-phase funding agreement.

Nyrstar said the Port Pirie pilot plant could produce 2,000 t/yr of antimony by the end of this year. That would be meaningful because antimony is increasingly viewed as a strategic metal for defence, flame retardants, batteries and industrial alloys.

Hobart has already faced production cuts during weaker zinc market conditions. That history shows how exposed the site remains to zinc prices, energy costs and operating margins.

Without a second funding phase, Nyrstar may cut capital expenditure and operating costs as part of the review. That could delay diversification plans and weaken Australia’s ability to preserve downstream metal processing capacity.

Critical Minerals Could Decide Smelter Value

The future of the two smelters may depend on whether they can become more than conventional lead and zinc assets. Processing critical minerals could give them a stronger role in Australia’s industrial strategy.

Australia’s Future Made in Australia policy aims to retain industrial capability and use renewable energy to support low-carbon exports, including metals. Smelters such as Port Pirie and Hobart fit that policy direction if they can become competitive and strategically relevant.

The challenge is cost. Existing smelters need reliable power, capital upgrades and market support to compete against lower-cost global processors.

Recent government support for aluminium and copper processors shows that Canberra is willing to intervene when strategic industrial assets face closure. But each case still needs a credible long-term pathway.

For Nyrstar, that pathway may involve antimony, bismuth, tellurium and other by-product metals. These materials can improve the value of complex smelting operations if they are recovered efficiently and sold into secure supply chains.

For Australia, the decision is broader than one company. Losing smelting capacity would weaken domestic processing depth at a time when governments are trying to reduce dependence on concentrated foreign refining systems.

The Metalnomist Commentary

Nyrstar’s Australian smelter review shows that critical minerals policy must extend beyond mining into processing assets that already exist. The key question is whether Australia can turn legacy smelters into strategic by-product platforms before high energy costs force permanent closures.

Finniss Lithium Operation Restart Signals Australian Spodumene Supply Return

Core Lithium

Finniss Lithium Operation is returning to production after Core Lithium restarted mining at the Grants open pit in Australia’s Northern Territory. The move marks the reopening of an asset that had been in care and maintenance since 2024 because of weak lithium prices.

Finniss Lithium Operation will process its first ore in the September quarter, with the first spodumene concentrate shipment expected in the December quarter. Additional shipments are planned for 2027.

Finniss Lithium Operation restart reflects the sharp recovery in spodumene prices after supply constraints emerged in late 2025. Core Lithium approved the restart in March as stronger pricing improved the economics of bringing idled capacity back online.

The Grants pit will provide access to around 800,000t of ore and deliver about 100,000t of spodumene concentrate on a 5% lithium oxide basis. Mining has started in line with Core Lithium’s final investment decision schedule and cost expectations.

Grants Pit Brings Near-Term Spodumene Back to Market

The Grants open pit gives Core Lithium a near-term route back into the seaborne spodumene market. First ore processing in the September quarter and first shipment in the December quarter create a clear restart timeline.

This matters because Australian lithium producers are beginning to respond to stronger market conditions. Several operations that were halted during the downturn are now restarting as prices recover.

Spodumene prices have rebounded sharply from the lows reached in December 2025. The recovery has made previously idled hard-rock assets more attractive, especially those with existing infrastructure and established development plans.

For buyers, the return of Finniss adds incremental Australian supply at a time when lithium converters are reassessing feedstock security. But the restart also adds new supply into a market still vulnerable to oversupply if too many projects return at once.

Core Lithium’s timing is therefore important. The company is moving before the next wave of supply fully arrives, but it must still prove stable mining, processing and shipment performance after a long shutdown.

BP33 Sets Up Longer-Term Finniss Expansion

Core Lithium is also advancing infrastructure work at the BP33 underground mine. The company awarded a A$274mn underground mining services contract to Develop Global for a three-to-five-year period.

BP33 is expected to be developed by mid-2027. It should help lift ore production at Finniss to 1.2mn t/yr by mid-2028.

Core Lithium’s final investment decision summary outlines a longer-term plan to produce spodumene concentrate over a 20-year mine life. Expected unit costs are around A$762/t, giving the operation leverage to higher spodumene pricing if execution stays on track.

The restart and BP33 development show how lithium producers are rebuilding confidence after the 2024-25 market downturn. The key difference now is that investors and customers will focus more closely on cost discipline, grade, logistics and customer commitments.

For the broader battery supply chain, Finniss adds another signal that Australian spodumene remains central to global lithium raw material supply. The market recovery is bringing supply back, but long-term balance will depend on whether battery demand can absorb returning and new production.

The Metalnomist Commentary

Core Lithium’s restart shows that the lithium cycle has turned enough to bring idled Australian mines back into action. The risk is that recovering prices invite too much supply too quickly, making cost discipline and offtake quality more important than restart headlines.

Bald Hill Lithium Mine Restart Signals Stronger Spodumene Recovery

Bald Hill Lithium

Bald Hill lithium mine operations are restarting after Mineral Resources responded to a sustained recovery in lithium prices. The Western Australian mine had been on care and maintenance since November 2024.

Bald Hill lithium mine ramp-up will begin in late May, with crushing and mining operations scheduled to start in June. First spodumene concentrate production is expected in July.

Bald Hill lithium mine shipments are planned from the Port of Esperance in the third quarter of 2026. Full capacity is expected in the fourth quarter.

The restart shows that stronger spodumene prices are beginning to bring suspended Australian lithium capacity back into the market. It also confirms that producers are becoming more confident after the severe lithium downturn that forced project closures and delays.

Spodumene Prices Bring Idled Capacity Back

Bald Hill has production capacity of about 165,000 dry metric tonnes per year of 5.1% spodumene concentrate. On a normalized 6% spodumene concentrate basis, capacity is around 140,000 dmt/yr.

The restart is modest compared with Australia’s largest lithium operations, but it matters for market sentiment. Idled mines returning to production show that the price recovery is no longer only a paper-market signal.

Mineral Resources also operates the Wodgina and Marion lithium mines. The company has lifted production guidance for both assets for the fiscal year ending June 2026.

Wodgina guidance increased to 280,000 dmt of SC6, while Marion guidance rose to 220,000 dmt of SC6. Together with Bald Hill, these assets strengthen MinRes’ position as a major Australian spodumene producer.

The restart also adds more supply to the seaborne lithium concentrate market. That could help converters secure feedstock, but it also raises the risk that returning capacity eventually caps price upside if demand growth slows.

Posco Stake Reinforces Battery Supply Chain Link

South Korean steelmaker Posco acquired a 30% stake in MinRes in November 2025 for $765mn. That investment gives the restart a stronger downstream battery supply-chain connection.

Posco has been expanding across battery materials, and access to Australian spodumene can support long-term lithium chemical production. For MinRes, the relationship provides strategic capital and potential customer alignment.

Western Australia remains one of the world’s most important lithium supply regions. Its hard-rock mines feed converters in China, South Korea and other battery manufacturing hubs.

The Bald Hill restart therefore fits a wider supply-chain pattern. Lithium producers are trying to rebuild volumes as prices recover, while downstream players seek more secure feedstock before battery demand accelerates again.

The key question is whether the recovery remains strong enough to absorb returning supply. If prices hold, more idled lithium capacity could follow Bald Hill back into production.

The Metalnomist Commentary

Bald Hill’s restart shows that lithium’s recovery is becoming operational, not just financial. The market now needs to watch whether returning Australian supply supports battery security or creates the next round of oversupply pressure.

Australia's Lithium Concentrate Exports Surge in First Half of 2024

Australia's lithium concentrate (spodumene) exports saw a significant increase in the first half of 2024, reaching approximately 1.94 million metric tons. This growth was largely driven by robust demand in the second quarter, particularly from South Korea and Indonesia, as they began to ramp up their imports of Australian lithium supplies.

From April to June, exports surged by 49% year-over-year to 1.26 million tons, contributing to a 9.9% rise in total first-half shipments, according to data from the Australian Bureau of Statistics. China remained the dominant importer, accounting for nearly 95% of Australia's lithium concentrate exports, with volumes rising by 4.6% to 1.84 million tons. This surge is closely tied to China's continued growth in new energy vehicle (NEV) sales and production, which remains strong despite global concerns about slowing electric vehicle (EV) growth in other regions such as Europe and the United States.

South Korea's imports of spodumene experienced a dramatic increase, rising to 71,441 tons in the first half of the year from just 1,240 tons a year earlier. This spike follows the completion of the country's first lithium hydroxide plant late last year, which has since started production. The plant, a joint venture between Australian lithium producer Pilbara Minerals and South Korean conglomerate Posco, delivered its first lithium hydroxide order in April.

Indonesia also saw a sharp increase in spodumene imports, reaching 25,098 tons from a mere 60 tons the previous year. This growth coincides with the launch of pilot production at a lithium plant in Indonesia by Chinese lithium salts producer Chengxin Lithium, which extracts lithium from hard rock ores.

Despite these gains, the lithium market faces challenges. While most Australian lithium producers reported higher spodumene output in the second quarter—including companies like Pilbara Minerals, Mineral Resources, and Core Lithium—Core Lithium has paused its processing operations since June due to the weak lithium market conditions.

Australia's lithium concentrate exports (t)

* Source : Australian Bureau of Statistics

South32 Manganese Ore Export Prices Fall as China Demand Weakens

South32 Manganese Ore

South32 manganese ore export prices to China have fallen for June shipments as weak alloy demand, ample port inventories and cautious buying pressure the import market. The Australian diversified metals producer lowered offers for both Australian and South African manganese ore, according to Chinese importers.

South32 manganese ore export prices for Australian 42% lumpy ore fell to $5.40/mtu cif China for June delivery. This was down by $0.50/mtu from May.

South32 also reduced its offer for South African 37% manganese ore to $5/mtu cif China. This was down by $0.40/mtu from the previous month.

South32 manganese ore export prices are an important signal for the wider manganese chain because China remains the largest global buyer of seaborne ore. When Chinese alloy plants slow purchases, overseas miners often need to adjust export offers to maintain sales momentum.

Chinese Alloy Weakness Cuts Restocking Appetite

Chinese importers have shown limited interest in restocking manganese ore because inventories remain sufficient and alloy prices are weakening. This has reduced spot buying urgency before the Labour Day holiday on 1-5 May.

Many alloy plants postponed ore feedstock purchases while waiting for clearer market direction after the holiday. This cautious behaviour has weakened the negotiating position of overseas ore suppliers.

The pressure is also visible in Chinese port prices. Australian 44-46% lumpy manganese ore fell to 43-47 yuan/mtu delivery ex quay on 28 April, down from 47-50 yuan/mtu on 31 March.

The decline shows that domestic buyers are not only resisting new import offers. They are also repricing available port material lower as downstream demand fails to improve.

Manganese ore demand is closely linked to ferro-manganese and silico-manganese production. These alloys are used in steelmaking, where manganese improves strength, deoxidation and performance.

When steel consumption slows, alloy plants reduce purchasing activity. This immediately affects ore demand because manganese alloy producers are the main consumers of imported ore.

Steel Demand Remains the Main Constraint

The deeper issue is weak steel demand in China. Slower economic growth and subdued construction activity have limited recovery in steel consumption, leaving alloy producers cautious about raw material buying.

Without a stronger steel recovery, manganese alloy prices are likely to remain under pressure. This limits the ability of alloy plants to pay higher ore prices, even when miners try to defend margins.

South32’s price cut also reflects wider seaborne competition. Mining firms outside China need to respond when Chinese buyers have enough stock and are unwilling to chase cargoes.

Australian high-grade lumpy ore usually commands stronger interest because of its quality and processing value. However, even higher-grade material can weaken when alloy margins are poor and port inventories are sufficient.

South African ore also remains exposed to Chinese demand swings. Lower-grade material can face sharper price pressure when buyers reduce procurement and focus only on immediate needs.

For the manganese market, the June price cut suggests that miners are prioritising volume discipline and customer access over holding elevated offers. The next price direction will depend on whether Chinese alloy plants return after the holiday with real restocking demand.

If steel demand remains weak, manganese ore prices could face further downside pressure. If alloy prices stabilise and inventories fall, importers may resume buying, but recovery is likely to be gradual.

The Metalnomist Commentary

South32’s price cut shows that the manganese market is being driven by demand absorption, not supply shortage. Until Chinese steel and alloy demand improves, seaborne manganese ore suppliers will remain exposed to cautious restocking and lower port prices.

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.

Australia Critical Minerals Prospectus Signals a Bigger Global Investment Push

Australian, Critical Minerals

Australia critical minerals prospectus marks a sharper push to attract global capital into domestic supply chains. Canberra has launched a new project list covering 78 projects across 14 critical minerals. The document focuses on assets at or beyond pre-feasibility stage. As a result, the Australia critical minerals prospectus is designed to turn project visibility into investment momentum.

This move matters because Australia wants to position itself as a trusted supplier in a more fragmented global market. The government launched the prospectus during meetings in Washington, DC. That timing shows the document is not only informational. Therefore, the Australia critical minerals prospectus is also a geopolitical investment tool.

The project list is selective rather than exhaustive. Australia’s broader major projects list includes 130 critical mineral projects, but many are earlier-stage assets. The new prospectus narrows the field to more advanced opportunities. Consequently, the government is trying to present investors with a more commercially credible pipeline.

Australian Critical Mineral Projects Are Being Framed for Global Capital

Australian critical mineral projects are now being packaged more directly for international investors. Only three of the 78 prospectus projects are currently under construction. That means most still need capital, partners, and execution support. As a result, the prospectus is effectively a curated financing map for the next phase of development.

This approach fits Australia’s wider strategy. Canberra has already agreed to co-invest at least $3bn with the United States in critical mineral projects. The US Export-Import Bank also indicated possible co-funding support for several Australian assets. Therefore, Australian critical mineral projects are increasingly being linked to allied capital, not just domestic policy.

Japan also sits inside this emerging framework. Australia has signaled that the next stage of its relationship with Japan should focus more heavily on critical minerals and economic security. That gives the prospectus broader diplomatic value. Meanwhile, it strengthens Australia’s role as a preferred partner in allied supply diversification.

Critical Minerals Strategic Reserve Adds a Stronger Domestic Backstop

Critical minerals strategic reserve policy is the second major pillar behind this push. Australia plans to launch a A$1.2bn reserve in 2026 to support developers. The government will secure offtake rights and then sell those rights into the market. Consequently, the critical minerals strategic reserve could reduce financing risk for selected projects.

The choice of target materials is also important. Australia plans to focus primarily on antimony, gallium, and rare earth element projects under the reserve scheme. These are precisely the kinds of materials where market concentration and geopolitical risk remain high. Therefore, the reserve is being designed around strategic vulnerability, not only export volume.

The broader export outlook supports this push. Australia expects critical mineral export earnings to rise, led largely by manganese and rare earths. That creates a stronger commercial backdrop for new investment. As a result, the Australia critical minerals prospectus arrives with both policy support and improving sector relevance.

The Metalnomist Commentary

This prospectus is more than a project catalogue. It is a signal that Australia wants to convert geological strength into a more investable strategic minerals platform. If capital and policy now move together, Australia could deepen its role as one of the most important allied critical minerals suppliers.

Iwatani acquires Australian mineral sands firm to deepen titanium ore and zircon supply

Iwatani

Iwatani acquires Australian mineral sands firm to expand its critical minerals footprint in Western Australia. Iwatani acquires Australian mineral sands firm through its Iwatani Australia unit. As a result, the group positions itself closer to titanium ore and zircon supply.

Iwatani completed the acquisition of Coburn Resources on 15 December for an undisclosed amount. Coburn Resources mineral sands operations focus on titanium ore and zircon products. Meanwhile, Iwatani said the added mining project will more than double its local supply capacity.

Why mineral sands matter for aerospace, ceramics, and industrial supply chains

Titanium ore and zircon supply underpins several strategic value chains. Titanium feed supports pigment and metal pathways that serve construction and aerospace demand. Zircon demand links to ceramics, refractories, and foundry applications across global manufacturing.

Mineral sands also sit at the center of critical minerals policy. Governments increasingly prioritize resilient, traceable supply in friendly jurisdictions. Therefore, Iwatani gains optionality as customers tighten sourcing requirements and ESG scrutiny rises.

Iwatani’s Australia strategy signals a broader critical minerals buildout

Iwatani acquires Australian mineral sands firm as it accelerates upstream access beyond energy trading. The company already runs two critical minerals projects near Perth. However, adding Coburn Resources mineral sands creates scale and improves logistics leverage.

The move also supports Iwatani’s longer-term ambition to secure critical mineral rights across multiple regions. The firm signaled interest in Australia, Europe, and other markets for mineral sands and rare earths. As a result, Iwatani can assemble a more resilient supply chain portfolio for industrial customers.

The Metalnomist Commentary

This deal looks like a classic “security of supply” play under tightening critical minerals competition. However, value creation will depend on execution, product quality, and long-term offtake alignment. Iwatani now needs to convert ownership into dependable volume and customer trust.

Mt Marion Lithium Expansion Advances as MinRes and Ganfeng Lift Spodumene Supply

Mineral Resources

Mt Marion lithium expansion is moving ahead after Mineral Resources and Jiangxi Ganfeng Lithium reached a final investment decision on a A$490mn upgrade at the Western Australian mine. The project will raise 6% spodumene concentrate output from 500,000 t/yr to 600,000 t/yr.

Mt Marion lithium expansion reflects renewed confidence in spodumene markets after a period of stronger pricing, Chinese demand and supply disruption from Zimbabwean export controls. The decision also reinforces Australia’s role as a core lithium feedstock supplier to global battery material chains.

Mt Marion lithium expansion includes A$220mn for underground mine development, A$240mn for a flotation plant and A$30mn for non-processing infrastructure. Construction is scheduled to begin in July-September.

The partners expect to commission the mine within 12 months of construction starting, with production ramp-up over the following six months. That timeline makes Mt Marion an important near-term growth project in the Australian hard-rock lithium sector.

Underground Mining Extends Mine Life and Feed Flexibility

The underground mine will supplement ore from the existing open pit and contribute up to 40% of processing feed. This will extend Mt Marion’s remaining mine life by six years beyond the previous estimate of 10 years.

That is strategically important because mine life extension improves supply visibility for customers and investors. Battery chemical producers need stable spodumene feedstock to support long-term lithium hydroxide and lithium carbonate production.

The underground development also gives MinRes and Ganfeng more operational flexibility. Combining open-pit and underground ore can support feed blending, grade control and continuity as the mine matures.

The project will cause minimal disruption to existing operations, according to the company. That matters because the mine is already a major producing asset and any downtime could affect near-term shipments.

Mt Marion is also backed by a strong downstream partner. Ganfeng is one of China’s leading lithium companies, giving the project a direct link to one of the world’s largest battery materials markets.

Flotation Plant Targets Higher-Grade Product Mix

The new flotation plant will remove SC3.5 product from MinRes’ mix and deliver a minimum SC5 grade product. This is a key upgrade because higher-grade concentrate can improve processing efficiency for downstream converters.

SC6 remains the benchmark product for hard-rock lithium supply. Increasing SC6 output to 600,000 t/yr gives Mt Marion stronger exposure to higher-value concentrate markets.

The investment economics are highly sensitive to price. At an assumed SC6 price of $2,700/t, MinRes expects the expansion payback period to be less than one year.

Spodumene prices have risen in recent months, supported by Zimbabwe’s lithium concentrate export controls and strong Chinese demand. The latest Australian SC6 assessment was $2,661/t on 19 May, down from $2,811/t a week earlier but still elevated enough to support renewed investment.

MinRes also cited higher lithium prices as a reason for restarting operations at its Bald Hill mine in Western Australia. Together, these moves suggest producers are again positioning for stronger lithium feedstock demand.

The broader lithium market remains volatile, but the Mt Marion decision shows that high-quality Australian assets can still attract capital when pricing, partners and mine-life extension align.

The Metalnomist Commentary

Mt Marion’s expansion shows that lithium investment is returning first to established, scalable assets with strong downstream links. The key lesson is that the next lithium cycle will reward producers that can improve grade, extend mine life and secure reliable routes into China’s battery supply chain.

South32 Gemco Manganese Operations Face Cyclone Narelle Supply Risk

South32, Gemco Manganese

South32 Gemco manganese operations are facing renewed weather-related disruption risk as Cyclone Narelle approaches Groote Eylandt in Australia’s Northern Territory. The company is moving non-essential personnel offsite while monitoring the incoming system with local emergency authorities.

The precautionary move comes as Cyclone Narelle is forecast to pass Groote Eylandt on Saturday afternoon. Australia’s Bureau of Meteorology expects the cyclone to reach category three strength by that time, bringing stronger wind and rain conditions to the island.

South32 Gemco manganese operations are important to the seaborne manganese ore market because Gemco is a major source of high-grade Australian ore. Any operational disruption could affect supply flows into China, where manganese ore demand is closely tied to steel and alloy production.

Groote Eylandt Weather Risk Returns After Cyclone Megan Disruption

Groote Eylandt has already shown how severe weather can affect manganese supply. South32 paused mining operations at Gemco for four months in March 2024 because of Cyclone Megan, and manganese exports from the site only resumed in May 2025.

That history makes the latest cyclone warning more significant for the market. Even if the current action is only precautionary, buyers and traders will watch closely for any damage to mining, haulage, port infrastructure, or export schedules.

South32 plans to produce 3.2 million tonnes of manganese at Gemco in July 2025-June 2026. Maintaining that output will be important for stabilizing supply after the previous weather-related disruption.

Manganese Ore Market Watches China Demand and Australian Supply

South32 Gemco manganese operations also sit at an important point in the pricing cycle. The company raised its March-delivery Australian 43pc lumpy manganese ore cif China price by $0.10/mtu to $5.20/mtu in late January, citing expectations for stronger Chinese demand after the lunar new year holidays.

Cyclone-related uncertainty could add another layer of support if the market sees a risk to Australian export availability. Manganese ore is essential for steelmaking through ferro-manganese and silico-manganese production, so supply interruptions can quickly influence alloy raw material sentiment.

For now, the key issue is whether Cyclone Narelle causes only a short safety response or a broader operational setback. The market will focus on site access, port conditions, and South32’s ability to maintain shipment schedules after the weather system passes.

The Metalnomist Commentary

South32’s latest move shows that manganese supply risk is increasingly shaped by weather resilience as much as mine capacity. For steel-linked raw materials, reliable logistics from vulnerable export hubs can become a pricing factor overnight.

Australia's Export Revenues from Iron Ore and Metallurgical Coal Projected to Decline in FY2025

Australia's export revenues from iron ore and metallurgical coal are forecasted to decline significantly in FY2025 due to a general decrease in international prices, despite increased port inventories in China and rising demand from emerging markets.

The Australian Department of Industry, Science, and Resources recently released its "Q3 2024 Resources and Energy Report," predicting that export prices for iron ore will fall to $96 per ton in 2024, $84 per ton in 2025, and $77 per ton in 2026.

For the fiscal year 2025 (April 2024 - March 2025), Australia's iron ore export revenues are expected to drop by 17.4% from AUD 138 billion in the previous year to AUD 114 billion. Further decline is anticipated in FY2026 (April 2025 - March 2026) with revenues projected to be AUD 102 billion.

Earlier reports had estimated FY2025 iron ore export revenues to be AUD 107 billion. However, improved economic indicators from China, Australia's largest export market, have led to increased port inventories and improved market sentiment, prompting a revision of the forecasts.

Nonetheless, recent price declines pose challenges. Iron ore prices fell by $7-10 per ton in June compared to the previous month. As of June 28, iron ore on China's Dalian Commodity Exchange was 819 yuan per ton ($112.7 per ton), while on the Singapore Exchange it was $105.65 per ton.

The price drop is attributed to weakening steel demand in China during the off-season and increased port inventories. The most significant negative factor in the international iron ore market is the excess supply of iron ore not absorbed by China's existing demand.

Contrary to the Australian government's projections, HSBC Holdings, a British multinational commercial bank, anticipates that international iron ore prices will reach $100 per ton in 2024. The bank believes that strong demand from emerging markets will prevent a significant price drop despite China's real estate crisis.

Capital Economics, a British economic research firm, predicts that iron ore prices will fluctuate between $99 and $100 per ton this year. The firm forecasts prices at $100 per ton in Q2 and Q4, and $99 per ton in Q3, with a drop to $85 per ton by the end of next year. The firm attributes the expected decline to prolonged recessions in major economies and weak global steel demand.

For FY2025, metallurgical coal export revenues are projected to fall by 31.1% from AUD 61 billion in the previous year to AUD 42 billion.

While Australia's production of metallurgical coal is expected to increase during this period, the decline in export prices will likely reduce export revenues. Metallurgical coal export prices are anticipated to drop from $264 per ton in 2024 to $228 per ton in 2025, and further to $208 per ton in 2026.

The Australian government and mining industry forecast that reduced demand from China, the largest importer, along with adverse weather conditions such as La Niña, could negatively impact production. However, they do not foresee the price decline triggering a crisis for Australian mining companies.

Australia Criticizes U.S. Tariff on Imports: A Growing Global Trade Concern

Imports

Australia has voiced strong opposition to the U.S. decision to impose a 10% tariff on its imports, a move that could further disrupt global trade. The Australian government and industry groups have expressed concerns over the tariff's lack of rationale, with industry leaders warning of retaliatory measures that may harm economic stability worldwide.

Prime Minister Albanese Denounces U.S. Tariff Decision

Australian Prime Minister Anthony Albanese described the U.S. tariff as "unwarranted" and emphasized that the decision lacked logical grounds. He argued that a truly reciprocal tariff would be zero, highlighting that the tariff would only add to global economic uncertainty. Despite these concerns, Australia has refrained from imposing trade barriers on the U.S. and instead seeks to resolve the issue through existing dispute resolution mechanisms outlined in their free trade agreement.

Impact on Australian Exports and Global Trade Relations

The new tariff has the potential to significantly affect Australia’s export economy, particularly in sectors like advanced metals, chemicals, and engineering products. Australia exported goods worth $16.7 billion to the U.S. in 2024 while importing $34.6 billion in U.S. products, resulting in a $17.9 billion trade surplus for the U.S. Although products like copper, pharmaceuticals, semiconductors, and certain critical minerals are unaffected, the 25% tariff on Australia's steel and aluminum exports is already in place, with over 100,000 tons per year impacted.

The Australian Industry Group (Ai Group) warned that the tariff signals growing trade barriers and higher costs for businesses, threatening to destabilize established trading relationships. While Australia's direct exposure remains low, the nation's reliance on raw material exports such as coal and iron ore to China, a country facing its own tariff issues, may further complicate matters.

The Path Forward for Trade Policy Reform

As Australia braces for the potential fallout from the U.S. tariff, the Ai Group has urged the government to reform its taxation system, deregulate where necessary, and provide greater policy certainty, especially on energy issues. With expectations of a potential trade war rising, businesses are facing heightened uncertainty, and the government is under pressure to adapt its policies to remain internationally competitive.

Conclusion: A Shifting Global Trade Landscape

The recent U.S. tariff decision adds another layer of complexity to global trade relations. While the immediate impact on Australia may be limited, the ripple effects are being felt worldwide. As the situation unfolds, the need for diplomatic dialogue and policy reform becomes increasingly critical in maintaining stable international trade relations.

Yahua Terminates Finniss Lithium Offtake Deal with Core Lithium Following Project Suspension

Yahua Lithium

Chinese lithium producer Yahua terminated its spodumene offtake agreement with Australia's Core Lithium for the suspended Finniss project operations. The Yahua Finniss lithium deal termination follows Core Lithium's decision to halt operations at the Australian project in July 2024. Core Lithium agreed to pay Yahua a $2 million settlement to resolve the contractual obligations under the original 2019 offtake agreement for the Yahua Finniss lithium supply arrangement.

Original Offtake Agreement Targeted 75,000 Tonnes Annual Spodumene Supply

The terminated offtake agreement required Yahua to purchase at least 75,000 metric tonnes per year of spodumene concentrate from Core Lithium's Finniss project. The parties signed this long-term supply contract in 2019 when lithium market fundamentals appeared more favorable for Australian project development. However, the Finniss project faced operational challenges and market headwinds that ultimately led to the suspension of mining activities.

Core Lithium's decision to halt operations reflects broader challenges facing Australian lithium projects amid volatile pricing and operational complexities. The $2 million settlement payment compensates Yahua for the terminated supply relationship while releasing both parties from future contractual obligations. Meanwhile, the Yahua Finniss lithium deal termination demonstrates the risks facing long-term offtake agreements when projects encounter operational difficulties.

Diversified Supply Strategy Shields Yahua from Feedstock Disruption

Yahua emphasized that the Finniss project termination will not affect its lithium feedstock supply security due to diversified sourcing strategies. The Chinese lithium producer owns the Kamativi lithium assets in Zimbabwe, providing direct control over spodumene production and processing operations. As a result, this backward integration strategy reduces Yahua's dependence on third-party Australian suppliers for critical lithium raw materials.

The company maintains additional supply agreements with established lithium miners including Australia's Pilbara Minerals and other global producers. These diversified supply relationships ensure consistent feedstock availability despite individual project disruptions or market volatility. Therefore, Yahua's multi-sourced approach provides operational flexibility and supply chain resilience across different geographic regions and mining operations.

Yahua's response to the Finniss project termination highlights the importance of supply diversification in the volatile lithium market. Chinese lithium processors increasingly pursue backward integration strategies and multiple supplier relationships to manage supply risks. Consequently, the Yahua Finniss lithium deal termination reinforces the strategic value of diversified sourcing approaches for lithium chemical producers.

The Metalnomist Commentary

The Yahua-Core Lithium offtake termination illustrates the fragility of long-term supply agreements in volatile commodity markets, particularly for emerging lithium projects facing operational and financial pressures. Yahua's emphasis on supply diversification through asset ownership and multiple supplier relationships reflects the evolving risk management strategies of Chinese lithium processors seeking to secure feedstock supplies amid market uncertainty and project development challenges.

Australian Government Provides Additional Funding for Iluka's Eneabba Rare Earth Plant

Iluka Resources

The Australian government has pledged up to A$400 million ($257 million) in additional funding to support Iluka Resources’ Eneabba rare earth refinery project in Western Australia. The facility aims to bolster Australia’s presence in the critical minerals supply chain amid rising global demand.

Addressing Cost Uncertainties in Eneabba Project

Iluka Resources, a leading mining firm, initially secured an A$1.25 billion loan facility from the Australian government in April 2022 to finance the Eneabba refinery. However, escalating construction costs—now estimated at A$1.7-1.8 billion—created a funding shortfall. To bridge the gap, the government has approved an additional A$400 million loan, contingent on Iluka securing customer offtake agreements and utilizing its existing credit facilities.

The support package also includes A$75 million for a cost overrun facility, with Iluka agreeing to contribute an equal amount, although the company indicated it might not need to draw on this capital.

Iluka’s refinery, set to commence operations in 2027, will produce 12,100-18,400 tonnes per year of rare earth oxides, including neodymium-praseodymium (NdPr)—key components for electric vehicle motors, wind turbines, and other green technologies.

Policy Support and Industry Expansion

The announcement aligns with Australia’s broader strategy to strengthen its critical minerals sector. Last week, the Australian Parliament passed the Future Made in Australia package, which provides funding incentives for domestic mineral processing. Under this framework, Iluka can claim tax incentives worth 10% of its processing costs once the refinery begins operations.

Currently, Australia has only one operational rare earth refinery, Lynas Rare Earths’ Kalgoorlie plant, but the government is actively encouraging new entrants. The move comes as global demand for rare earth elements like praseodymium, dysprosium, and terbium is projected to rise significantly by 2033.

Geopolitical Context

Iluka’s funding boost comes amid heightened geopolitical tensions. China recently suspended exports of gallium, germanium, and antimony to the US, a retaliatory move against US semiconductor export restrictions. Such disruptions underscore the importance of diversifying critical mineral supply chains, a goal Australia aims to achieve by expanding its domestic refining capacity.

Australian Lithium Companies Maintain Optimism Amid Low Prices, Eye Long-Term Growth

Despite lithium prices hitting a five-year low, Australian lithium mining companies remain optimistic about the future, expecting a price recovery later in the decade that will sustain their operations. Industry leaders expressed confidence at the Diggers and Dealers mining forum in Kalgoorlie, Western Australia, citing the cyclical nature of the market and the long-term demand driven by the electric vehicle (EV) industry.

Dale Henderson, CEO of Pilbara Minerals, likened the current market situation to "a bright blue sky with a bit of cloud cover," noting that price volatility is expected in rapidly growing industries like lithium. "It's no surprise really, given that lows always follow periods of highs," he said, emphasizing the industry's resilience.

The lithium market’s connection to the EV industry, which has experienced explosive growth in recent years, is a key factor in the optimism. Henderson highlighted that the combination of government stimulus, technological advancements, and varying rates of consumer adoption is driving the industry's evolution. He cautioned, however, that the road ahead would not be a "straight line" and that businesses must prepare for continued volatility.

Despite recent industry cutbacks, most Australian lithium companies are steadfast in their long-term strategies, confident that demand for lithium will continue to grow. Core Lithium, for instance, suspended operations at its Grants open pit mine in January, awaiting a market rebound. CEO Paul Brown mentioned that a price around $18/kg LCE is necessary to support the industry.

Tony Ottaviano, CEO of Liontown Resources, echoed this sentiment, stressing the importance of maintaining a long-term perspective. "When you see a 60% price reduction in six months, there is only one response a company can do and it is blunt. We need to hold our heads while others are losing theirs and push through," he said. Ottaviano pointed out that while EV adoption may be slowing in the US and Europe, it is expected to pick up as new models become competitive with internal combustion engine vehicles. In China, EV prices are already on par with traditional vehicles.

Looking forward, industry experts underscored the need for new investment in lithium to meet the anticipated surge in demand from EV manufacturing. However, current low prices are hindering the flow of necessary capital. Ivan Vella, CEO of IGO, which owns 49% of the world’s largest lithium mine, Greenbushes, highlighted the challenge of financing the development of 80 new lithium projects by 2035, each requiring substantial investment.

The optimism expressed by Australian lithium companies underscores their belief in the sector's long-term potential, despite current market challenges. As the EV market matures and demand for lithium grows, the industry is preparing to navigate through the volatility and capitalize on future opportunities.

Element 25 Butcherbird Manganese Expansion Gains Funding for Battery Supply Chain

Element 25

Element 25 Butcherbird manganese expansion has moved forward after the Australian metals producer raised $18mn in equity to support the next phase of mine growth. The funding will help expand manganese concentrate output from the Butcherbird mine in Western Australia.

The project is expected to triple Butcherbird’s manganese concentrate production to 1.1mn t/yr from 365,000 t/yr. Full mechanical completion and commissioning are expected in the first quarter of 2027.

Element 25 Butcherbird manganese expansion is strategically important because the mine will supply feedstock for the company’s planned battery-grade manganese sulphate refinery in Louisiana. That project links Australian ore supply with US battery materials processing.

The expansion also strengthens Element 25’s role in the electric vehicle supply chain. The company already has offtake agreements with General Motors and Stellantis, giving the project direct exposure to automaker demand for non-China battery materials.

Butcherbird Expansion Builds Manganese Feedstock Scale

Western Australia’s state government approved the Butcherbird expansion in March 2025. The mine is expected to operate for at least 18 years, giving Element 25 a long-term feedstock platform.

The planned increase to 1.1mn t/yr of manganese concentrate would materially change the scale of the operation. Higher concentrate output should support downstream conversion into battery-grade manganese sulphate while also leaving room for sales into traditional steel markets.

Manganese remains a key steelmaking input because it improves strength and toughness. Element 25 plans to sell excess concentrate to steelmakers, creating a secondary demand channel outside batteries.

However, the main strategic value is in batteries. Manganese is increasingly important for lithium-ion battery chemistries as automakers seek lower-cost, more secure and less cobalt-dependent cathode materials.

Louisiana Refinery Links Australia to US Battery Materials Policy

Element 25’s manganese concentrate will mainly feed its battery-grade high-purity manganese sulphate monohydrate facility in Louisiana. The refinery is planned for 135,000 t/yr of production capacity.

The US government backed the Louisiana refinery with a $166mn grant in January last year. This support reflects Washington’s effort to build domestic processing capacity for battery materials and reduce reliance on China-controlled supply chains.

The Australian government also opened a A$50mn loan package in June to support the Butcherbird expansion. Together, the US and Australian support show how allied governments are trying to connect mining, refining and EV manufacturing supply chains.

Element 25 Butcherbird manganese expansion therefore fits a broader industrial strategy. Australia provides the resource base, while the US builds refining capacity closer to automakers and battery manufacturers.

The project’s success will depend on execution at both ends of the chain. Butcherbird must deliver concentrate at scale, while Louisiana must convert that material into battery-grade sulphate that meets customer specifications.

The Metalnomist Commentary

Element 25’s project shows how manganese is moving from a steelmaking material into a strategic battery supply input. The key challenge will be proving that mine expansion and US chemical refining can scale together on the timeline automakers require.

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.

Australia Invests A$138.5 Million in Critical Minerals to Strengthen Domestic Supply Chains

Resource Capital Funds

In a significant move to bolster its domestic critical minerals sector, the Australian government announced a new round of investments and grants totaling A$138.5 million ($88.4 million) over the past week. This follows the recent approval of the Future Made in Australia (FMA) investment framework, aimed at diversifying the nation's critical mineral supply chains and creating jobs to meet national security, climate, and energy goals.

Key Investments to Support Domestic Mineral Production

Federal Resources Minister Madeleine King highlighted that the majority of these investments will be channeled through Resource Capital Funds (RCF), a specialist investor focused on metal extraction. RCF will invest $75 million in decarbonization projects within the critical minerals sector, marking a significant step in Australia's ongoing efforts to support cleaner, more sustainable mining operations.

Additionally, grants totaling $13.4 million were awarded to five mineral processors across the country to aid the early-stage development of rare earth, vanadium, fluorite, and graphite plants. These projects will play a pivotal role in meeting both domestic and global demand for these vital materials.

This new funding comes on top of A$303.2 million in loans that have already been provided to Iluka Resources for its Eneabba Rare Earths Refinery project. This refinery, located in Western Australia, is a key part of Australia's strategy to become a more significant player in the global rare earths market.

Strategic Alignment with Global Security and Climate Goals

Minister King emphasized the critical importance of these investments in diversifying global supply chains for materials that are crucial to clean energy, climate initiatives, and national security. Australia's growing role in the global critical minerals supply chain is reinforced by its recent FMA package, which allocated $14.3 billion to support the minerals sector, including tax incentives for production.

Australia's commitment to securing its mineral supply chain aligns closely with the goals of its international partners. Prime Minister Anthony Albanese's government has been actively fostering partnerships to ensure a stable and diversified critical mineral supply. Notably, a year into office, the Australian government signed the Climate, Critical Minerals, and Clean Energy Transformation Agreement with the US, which seeks to accelerate the diversification of clean energy supply chains and ensure stable mineral supply for both countries.

Additionally, the US has shown increasing interest in Australian critical minerals, with the US government recently supporting Australian miner Lynas in its efforts to establish a rare earth plant in the US. These moves further underscore the global strategic importance of securing a steady supply of critical minerals like rare earths, lithium, and vanadium.

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.