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WA resources sector spend hits record high
Economics & Commodity Prices
WA resources sector spend hits record high
The WA resources sector reported a record spend of $166b in 2025 —the equivalent of $454m every day — according to the Chamber of Minerals and Energy (CME) WA’s latest economic contribution survey.  The spend includes $26b in wages to direct employees, $101.4b in payments made to contractors, community groups and local governments as well as $38.6b paid in taxes and royalties to the State and Federal governments. The majority of the spend occurred in WA, accounting for $114b, where the resources sector now supports two in five jobs and provides just under a quarter of the WA Government’s general revenue, according to data from the CME. CME chief executive Aaron Morey says the rise of the WA resources sector had created hundreds of thousands of jobs, transformed national living standards and provided a funding base for the services Australians rely on every day.  “The WA resources paid $26.9b in  taxes last year, which is around $74m every day,” he said.  In addition to the wages paid to 144,784 direct employees, the survey found industry payments to suppliers and contractors had more than doubled in the space of three years to reach $100.6b to more than 26,000 local businesses in FY25.   “Behind every mine or energy project is a network of local businesses — accountants, caterers, engineers — supporting jobs in communities across Australia,” Mr Morey said.  “Each of those businesses plays a vital role for our sector — and our sector in turn is a vital source of income for those suppliers and contractors.  “It is a powerful demonstration of the multiplier effect of a strong resources sector that is supported to invest in the infrastructure, technology and people to remain competitive in an increasingly contested global landscape.”    
Rio pays $9.5b in Australian taxes for 2025
Projects & Operations
Rio pays $9.5b in Australian taxes for 2025
Rio Tinto (ASX: RIO) paid $14.3b globally in taxes and royalties during 2025 according to its most recent Taxes and Royalties Paid Report. Of the total taxes and royalties paid, $9.5b was paid in Australia — including corporate tax paid of $5.8b — and significant payments were also made in Chile, the US, in Mongolia and Canada. Higher tariffs on primary aluminium exports from Canada to the US, including the removal of the 10% tariff exemption from March 2025, resulted in about $1.45b  in additional tax payments in the US.  Higher profits at Escondida resulted in higher corporate tax payments in Chile and increased copper production and prices at Oyu Tolgoi resulted in higher royalty payments in Mongolia. Rio Tinto chief financial officer Peter Cunningham says the taxes and royalties Rio pays to governments are an important contributor to the economic health and development of the regions where it operates. “We seek to operate responsibly everywhere we work,” he said.  “Our payments to governments can be significant for national budgets and to support development priorities, while our voluntary social investment also allows communities to invest in their own social and economic development for years to come. “We continue to be a leader in transparent tax reporting, voluntarily publishing detailed information on our taxes and royalty payment to governments for over 15 years.” Rio also spent a record $19.7b with more than 6,000 Australian suppliers in 2025 — a $2b increase on the previous year. $12.1b of that was spent with WA suppliers as Rio advances development of its replacement mines in the Pilbara. A record $1.1b was spent with Indigenous businesses, including A$820m with Traditional Owner businesses. Rio Tinto iron ore chief executive Matthew Holcz says Rio’s suppliers are fundamental to its operations.  “We are proud to acknowledge the vital role these Australian businesses play in creating jobs, strengthening local economies and supporting our business,” he said. “Stronger local supply chains build stronger communities, and in turn, a stronger nation.”
Australian explorers cash in on billion-dollar exploration boom
Exploration & Discovery
Australian explorers cash in on billion-dollar exploration boom
A report from BDO has found Australian resource exploration companies are holding a record $12.04b in cash following an exceptionally strong funding quarter.The December quarter has historically been the strongest fundraising period for explorers and this pattern continued in 2025.For Q2 FY26, Australian advisory firm BDO recorded financing inflows of $5.63b, a 61% rise on $3.49b from the previous quarter, to support the highest total cash balance recorded since its analysis began, surpassing the previous $10.15b peak set in Q4 FY22.According to BDO, this is a clear indication of the improving financial health of ASX explorers and positive sector outlook.These numbers show strong liquidity among mid?tier and larger explorers as exploration activity gains momentum, with total expenditure increasing to $915.65m during the quarter — up from year-on-year (YoY) figures of $792.15m for FY24.BDO also reported the share of companies with less than $2m in cash declined to 36%, signalling reduced funding stress and improved prospects for project development heading into CY26.BDO natural resources and energy global lead Sherif Andrawes says investor sentiment improved during the quarter, supported by tightening supply conditions across key commodities and an increased global focus on critical minerals.“While gold continued to attract substantial funding inflows, significant support was also directed to energy?transition and critical minerals including lithium, uranium, rare earths, and copper,” he said.According to Australian Bureau of Statistics (ABS) data, gold exploration saw the largest rise in exploration activities, up 8.8%, while iron ore exploration fell 18.7%.Rox Resources (ASX: RXL) led the podium for ASX-listed gold explorers with $218m in cash available at the quarters end.Energy transition commodities were prominent this quarter, with lithium overtaking gold as the largest source of financing inflows by commodity.Lithium explorer Vulcan Energy (ASX: VUL), backed by Gina Rinehart’s Hancock Prospecting, recorded the highest cash balance at the end of the period, with $957.29m available on the back of Q2 fundraising activities, accounting for 88% of lithium-sector inflows for the quarter.“Growth in lithium financing inflows during the quarter, largely driven by Vulcan Energy, reflects Europe’s lithium supply deficit and the rising demand from electric vehicles (EVs) and energy storage systems, alongside the global expansion of electrification systems and the need to diversify sources of supply,” Mr Andrawes said.Arafura Rare Earths (ASX: ARU), another company backed by Hancock Prospecting, held the second highest cash balance of $500.72m at the quarters end after Ms Rinehart committed $125m to a share placement — raising Hancock’s stake in the company to about 15.7%.BDO reported the quarter saw a 32% increase in fund finders, companies that recorded debt and equity raises of $10m or more, rising to 103 companies from 78 in the previous quarter.These companies raised about $4.74b, about 65% higher than the $2.88b raised by 78 companies in the previous quarter. On average, the fund finder cohort for Q2 raised $46.01m per company and contributed about 84% to total financing inflows.“Looking forward, this quarter signals that ASX explorers enter 2026 with substantial momentum,” Mr Andrawes said.“Record financing inflows, rising exploration expenditure, improved cash reserves and a recovery in IPO activity collectively point to a more resilient and optimistic environment for explorers.”While macroeconomic uncertainty and market volatility remain ongoing challenges, broader participation across gold and energy?transition minerals indicates renewed investor support in Australia’s exploration sector.The sector appears well?positioned to sustain these activity levels into 2026, reinforcing the foundations laid during the standout quarter.
Australia signs landmark free trade agreement with EU
Politics & Regulation
Australia signs landmark free trade agreement with EU
After eight years of negotiations, Australia has signed a free trade agreement (FTA) with the European Union (EU) to lower trade and investment barriers between the regions.Yesterday, Prime Minister Anthony Albanese and European Commission President Ursula von der Leyen announced the conclusion of negotiations for a FTA alongside a new security and defence partnership.The FTA will boost trade and cooperation on critical minerals, reinforcing the Australia–EU strategic partnership on critical minerals by establishing a clear framework that underpins market access and long-term cooperation across the full minerals value chain.Under the FTA, almost all Australian exports of manufactured goods and mineral resources to the EU will face zero import tariffs.Federal Trade and Tourism Minister Don Farrell says the FTA is a strategically important and economically valuable agreement at a time when Australian exporters are navigating choppy trade waters.“This hard-fought deal delivers real commercial gains for Australian exporters, farmers and producers into a market that has been difficult to enter or effectively closed for decades,” he said.“The removal of EU tariffs on most of Australia’s exports gives Australian exporters the opportunity to diversify trade with 27 European countries and 450 million consumers.”Australian companies, including small and medium-sized enterprises, will have better access to bid for lucrative European government contracts, worth about $845b annually, including for rail and construction.Australian professionals will also be able to travel to the EU more easily and will benefit from streamlined recognition of their Australian qualifications.Minerals Council of Australia chief executive Tania Constable says Australia is positioned to be a reliable, long-term supplier of the minerals essential to energy systems, defence technologies, advanced manufacturing and broader industrial resilience.“Mutual recognition of qualifications, professional services and specialist expertise will strengthen industrial capability by improving workforce mobility so critical engineering, technical and professional skills can be deployed more efficiently across mining, processing, manufacturing and defence?adjacent sectors,” she said.“The agreement improves market access for Australian miners, enhances investment certainty and provides a strong platform for increased EU investment into Australian mining projects, downstream processing and critical minerals supply chains.”The FTA will enter into force when both Australia and the EU have completed their domestic processes.

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