The Day Ahead
The Queensland Mining and Engineering Exhibition (QME) kicks off in Mackay today, with over 300 suppliers and a leadership series backed by the Queensland Resources Council. This is the key networking event for the sector this week — expect operational updates and technology announcements from exhibitors including Hitachi and HEPI.
Oil markets remain on edge after Iran struck Kuwaiti infrastructure and Houthis declared a maritime blockade on Saudi Arabia, pushing Brent above $90/barrel. The Strait of Hormuz disruption is the single biggest risk to mining input costs and logistics today. Watch for further escalation and any government response on base oil supply security — Harrison Manufacturing has already warned of a lubricant crunch for heavy industry.
On the corporate front, South32 and Alcoa both delivered strong quarterly results yesterday, with South32 exceeding guidance across multiple commodities and Alcoa completing its Portland smelter restart. The tungsten price surge — up tenfold in 18 months — will keep EQ Resources in focus after Andrew Forrest’s $190 million stake. ASX futures point to a positive open despite geopolitical jitters, but the August earnings season looms with wide estimate dispersion flagged by Morgan Stanley.
Currency Movements
| Pair | Price | 24hr Change | 7-Day Trend |
|---|---|---|---|
| AUD/USD | 0.7002 | +0.0017 (+0.24%) | |
| EUR/USD | 1.1442 | -0.0003 (-0.03%) | |
| GBP/USD | 1.3467 | +0.0015 (+0.11%) | |
| USD/JPY | 162.37 | -0.0030 (-0.00%) | |
| USD/CAD | 1.4025 | +0.0005 (+0.04%) | |
| USD/CHF | 0.8068 | -0.0015 (-0.19%) | |
| NZD/USD | 0.5857 | +0.0012 (+0.21%) |
Yesterday's Key Stories
Iron Ore, Aluminium & Steel
- Fenix Resources secured regulatory and environmental approvals for its new Beebyn-W10 iron ore mine in WA, with first ore shipments due in the December quarter as part of a growth strategy targeting 6 Mtpa by FY28 and 10 Mtpa longer term.
- South32 exceeded FY26 production guidance across aluminium, Sierra Gorda, Cannington, and manganese, with quarterly sales up 15%, while accelerating its transition to a base metals-focused portfolio via the proposed sale of its aluminium assets to Alcoa.
- Alcoa reported record Q2 revenue of $US4 billion, driven by a 5% rise in aluminium production and 13% higher prices, completing the Portland smelter capacity restart and securing a final investment decision on a gallium plant at Wagerup.
Copper, Gold & Critical Minerals
- AIC Mines accelerated the second-stage expansion of its Eloise copper processing plant in North Queensland, targeting 25,000–27,000 tonnes of copper in concentrate by 2028–29 — roughly double current output — with a $15 million cost funded by cash flow.
- Cooper Metals acquired full ownership of the Pyramid gold project in Queensland via an asset swap with AIC Mines, with high-grade drill results including 8m at 7.31 g/t gold at the Gettysberg prospect and multiple untested targets.
- Beacon Minerals reported June quarter gold production of 5,241 ounces, with Lady Ida ore contributing 90% of output, as the Iguana mine development advanced and processing rates exceeded 1.2 million tonnes per annum.
- Andrew Forrest acquired a $190 million stake (16.8%) in tungsten miner EQ Resources from Oaktree Capital Management, as tungsten prices surged tenfold over 18 months on defence, renewable energy, and AI demand, and a US ban on Chinese-sourced tungsten takes effect January 1.
- Australia signed a trade deal to supply India with unenriched uranium for nuclear energy, sparking debate in Broken Hill about lifting the NSW ban on uranium mining.
Energy & Geopolitics
- Oil prices surged above $90/barrel for the first time in over a month as the US and Iran traded escalating strikes, with Iran hitting Kuwaiti oil and power infrastructure and Houthi rebels declaring a maritime blockade on Saudi Arabia through the Bab el-Mandeb Strait.
- The Beetaloo Basin in the Northern Territory is set to begin natural gas production within weeks, with first gas expected from Tamboran’s Shenandoah South project in September and Beetaloo Energy’s Carpentaria project in the December quarter, promising to transform the NT economy.
- Harrison Manufacturing warned of a supply crunch for industrial lubricants as Middle East conflict delays base oil shipments, with global prices for Group 1 and Group 2 base oils more than doubling since February, threatening mining and heavy industry operations in Australia.
- Singaporean renewables developer Yanara secured a $245 million investment from Mirova to support its 2 GW clean energy portfolio in Australia, including the Mortlake Energy Hub (450 MW solar and 600 MW battery storage) in Victoria.
Macro & Policy
- ASIC collected a record $830 million in civil penalties in the past financial year, including fines against ANZ, HSBC, Westpac, and other firms, reflecting a tougher enforcement stance following the 2018 banking royal commission.
- Moody’s warned Victoria is on track to spend 10% of revenue on debt interest by 2030, up from 3.5% in 2019, with state debt projected to reach $650 billion by 2026-27 and Middle East conflict exacerbating cost blowouts on infrastructure projects.
- The federal government faces a Federal Court trial over its approval of Woodside’s North West Shelf gas project extension, with environmentalists arguing the minister failed to consider carbon pollution and bias from close communication with the company.
- CDC Data Centres launched Australia’s first investment-grade data centre bond deal, marking a milestone in local capital markets as part of a global AI funding wave that has driven record debt issuance.
Today's Useless Fact
The Michelin man is known as Mr. Bib. His name was Bibendum in the company’s first ads in 1896.