Daily Overview: 22 July 2026

The Day Ahead

The QME 2026 exhibition in Mackay continues today, with the resources sector’s largest gathering in Queensland providing a platform for technology launches and critical minerals announcements. Watch for further detail on the RCOE-UQ-Mining3 partnership and any new offtake or investment deals tied to the critical minerals push.

Yancoal’s record quarterly production of 10.8Mt and a 9% rise in realised coal prices to $160/t reinforce the strength of thermal and met coal markets, but the sector’s recent sell-off — mining stocks went from best to worst performers in a month — suggests profit-taking and macro fears are weighing. The Fortescue founder’s $190m bet on EQ Resources (tungsten) signals a strategic shift toward non-China critical mineral supply, a theme likely to gain traction as export curbs tighten.

On the macro front, the US 50% tariffs on most Canadian goods (excluding energy and critical minerals) add another layer of trade uncertainty, while the Iran war continues to roil energy markets. With the Fed still under pressure to tighten and Australian housing data softening, commodity-exposed equities face a choppy session. Keep an eye on any further escalation in the Middle East and its impact on oil and shipping costs.

Currency Movements

Yesterday's Key Stories

Coal & Iron Ore

• Yancoal reported record quarterly attributable saleable coal production of 10.8 million tonnes (up 20% quarter-on-quarter) and a first-half record of 19.8 million tonnes, with an average realised coal price of $160/t (9% above the March quarter). The company retained 2026 production guidance of 36.5–40.5 million tonnes, expects output in the upper half, and progressed its proposed acquisition of an 80% interest in Queensland’s Kestrel coal mine after securing FIRB approval. Yancoal also noted plans to cease operations at Ashton from early 2028 due to technical, geotechnical and economic challenges.

• Fenix Resources delivered record FY26 iron ore shipments of 4.4 million tonnes, within guidance, and set FY27 production guidance of 4.7–5.3 million tonnes at a C1 cash cost of A$70–80/wmt. The company achieved record quarterly performances in mining, haulage and shipping, with the Beebyn Hub ramp-up ahead of schedule, and secured a new US$44 million funding facility. The Weld Range DFS remains on track for completion by end of 2026, supporting a long-term target of 10 million tonnes per annum.

• Andrew Forrest, executive chairman of Fortescue, is set to become the largest shareholder in EQ Resources with a ~$190 million investment, acquiring a 16.8% stake from Oaktree Capital Management. EQ Resources operates tungsten mines in Queensland and Spain, making it the largest western tungsten producer, and the investment positions it as a key supplier outside China, which controls about 80% of global tungsten supply and has imposed export curbs.

Critical Minerals & Technology

• The Resources Centre of Excellence (RCOE), University of Queensland and Mining3 formed a strategic partnership to strengthen Queensland’s critical minerals capabilities, announced at QME 2026. The collaboration aims to accelerate commercialisation of critical minerals technologies by connecting research, industry and government, leveraging RCOE’s Flexi Lab pilot processing facility and the newly formed Critical Metals for Critical Industries Cooperative Research Centre (CMCI CRC), with a focus on vanadium and other critical minerals.

• MMG’s Dugald River zinc mine deployed an AI-powered digital twin system developed with Hatch, which improved zinc recovery and plant profitability within three months of commissioning. After one year, the system has exceeded previous performance benchmarks and brought greater consistency to the processing plant using machine learning and advanced process control.

• BME Metallurgy provided advanced process chemistry solutions to Australian miners facing declining ore grades and complex deposits, including reagent recovery via nanofiltration, improved water management and tailored reagent programs that enhance recovery, reduce costs and support sustainability.

• Liebherr-Australia delivered its first excavators (R 9600 and R 9400) to Gold Fields at the Gruyere gold mine in Western Australia, marking a new partnership. The excavators are designed for high material movement rates, fuel efficiency and simplified maintenance, and Liebherr is expanding its presence in Western Australia’s gold sector with ongoing investment in service coverage and technical expertise.

Macro & Geopolitics

• US President Donald Trump imposed 50% tariffs on most Canadian goods under Section 338 of the 1930 Trade Act, citing discrimination against American autos, alcohol and dairy. The tariffs exclude energy, potash, fish and critical minerals, and take effect in 30 days, allowing time for negotiations. The move risks higher inflation, economic chaos and a broader trade war, and carries political risks for Trump ahead of midterm elections.

• The Iran war continues to roil global energy markets: while supply has held up better than expected due to strategic reserves and demand reduction, prices continue to rise, adding inflationary pressure. China has played a stabilising role by reducing imports and boosting exports of liquid fuels, but the sustainability of these buffers is uncertain if the conflict drags on. The war’s impact on energy prices, combined with domestic wage pressures, could force further interest rate hikes, hitting the Australian housing market and broader economy.

• Australian mining stocks, which were the best-performing sector over the past year, have become the worst performers in the last month due to profit-taking, Middle East conflict, AI jitters and fears of Fed rate hikes. Gold and copper prices have fallen, dragging down related stocks, but analysts see the sell-off as a buying opportunity, noting that some miners may benefit from an expected El Niño weather pattern that could reduce flood risks for coal and iron ore operations.

Today's Useless Fact

US gold coins used to say “In Gold We Trust”.