Daily Overview: 17 July 2026

The Day Ahead

The BHP strike at Port Hedland is the story to watch today. With 200 union workers walking off the job for eight hours, the first industrial action in the Pilbara in nearly 30 years, the cost to BHP could hit $50 million in lost revenue. The strike is a direct test of the Albanese government's new industrial relations laws, and the outcome will set a precedent for union bargaining power across the resources sector. Expect further escalation if high-voltage workers continue bans.

Copper markets are on edge after BHP flagged a 15% production decline for the coming year, driven by a conveyor belt failure at Carrapateena and falling grades at Escondida. The forecast wiped $6 billion off BHP's market value and challenges the bullish copper narrative that has driven the stock to record highs. Watch for any updates on the Carrapateena repair timeline and whether BHP's growth projects in Chile, South Australia, and Argentina can fill the gap.

Oil prices remain elevated at $84.95 a barrel after US strikes on Iran and the closure of the Strait of Hormuz. While experts say domestic fuel price rises will be muted due to strategic reserves and the fuel excise cut, the situation is fluid. Any further escalation in the Middle East could quickly change the outlook for energy costs across the mining supply chain.

Currency Movements

Yesterday's Key Stories

Iron Ore & Steel

• BHP achieved record iron ore production of 264.7 million tonnes in FY26, but faces an eight-hour strike at Port Hedland – the most significant industrial action in WA mining in 25 years – which could cost up to $50 million in lost revenue. The strike follows months of failed bargaining over a 16% pay rise offer, with negotiations now before the Fair Work Commission.
• Australia's only manganese smelter, Liberty Bell Bay in Tasmania, closed immediately after administrators failed to find a buyer, resulting in 217 job losses. The closure is part of Sanjeev Gupta's crumbling metals empire, and other Australian smelters face similar challenges from high power prices and cheap imports.
• Yancoal Australia received approval for a $1.8 billion pumped hydro and solar project at the former Stratford Mining Complex in NSW, supporting the state's energy transition with 300 MW of pumped hydro storage and a 320 MW solar farm.

Copper & Gold

• BHP flagged a 15% decline in copper production for the coming year due to a conveyor belt failure at Carrapateena in South Australia and declining ore grades at Chile's Escondida mine, wiping nearly $6 billion off its market value. The company outlined $44.7 billion in potential copper growth projects but faces a challenging near-term outlook.
• Evolution Mining closed FY26 with record cash flow of $1.389 billion, fully unhedged on gold and copper after delivering the last 18,000 ounces of a hedge at $3,284/oz. The company produced 715,000 ounces of gold and 66,000 tonnes of copper, with all mines profitable and growth projects on schedule.
• Sandfire Resources commenced a major drilling campaign at the Kalkaroo copper-gold project in South Australia, targeting a pre-feasibility study by the second half of FY28. The project hosts an Ore Reserve of 100 million tonnes at 0.47% copper and 0.44 g/t gold.
• Rox Resources reported high-grade drilling results at its Youanmi gold project in Western Australia, with intercepts including 4.6m at 9.6 g/t gold, supporting expansion beyond the current DFS mine plan. The company remains on track for first gold by mid-2027.
• Red Hill Minerals started a 1200m diamond drilling program at its Anabama copper-gold project in South Australia, targeting extensions of mineralisation after positive results from an earlier hole.

Lithium & Battery Minerals

• Mineral Resources appointed Macmahon Underground as the underground mining contractor for its Mt Marion lithium mine in Western Australia, following a final investment decision in May 2026. Underground development is scheduled to begin in Q1 FY27, with a new flotation plant expected to extend mine life and increase capacity to about 600,000 tonnes per annum of SC6. MinRes noted that market conditions have improved after a period of weak lithium prices.

Macro & Policy

• The historic Pilbara strike at BHP's Port Hedland has been enabled by the Albanese government's new industrial relations laws, with unions warning of further action and the Chamber of Minerals and Energy warning it puts investment at risk. The strike is the first in the Pilbara in almost 30 years and could escalate if high-voltage workers continue bans.
• S&P Global warned that Australian state budgets have an optimistic bias, with Labor's capital gains tax changes potentially reducing stamp duty revenue and presenting an emerging fiscal risk. No state has a positive credit outlook, with NSW and Queensland on negative outlooks.
• The US launched fresh strikes on Iran after reimposing a naval blockade, with oil prices rising to a one-month high of $84.95 a barrel. Experts say domestic fuel price rises will be muted due to strategic reserves, international supply agreements, and the Australian government's fuel excise cut, but the situation remains volatile.
• The NT Investment Summit in Darwin showcased a pipeline of projects including Arafura Rare Earths' Nolans project, the Beetaloo Sub-basin, and opportunities in mining and critical minerals, positioning the Territory as a destination for long-term investment amid growing demand for secure supply chains.
• Macquarie Technology secured 34,200 square metres of land in Sydney's Macquarie Park for a $3 billion data centre campus, as the federal government moves to regulate data centre location and energy use. Data centres currently contribute about one-third of Macquarie Technology's group EBITDA.

Today's Useless Fact

Until 1997, there were more pigs than people in Denmark.