Pressure on governments as deadline looms for Bell Bay Aluminium power deal

The Australian government has agreed to a AUD$2.5 billion bailout to save the Tomago aluminium smelter, majority-owned by Rio Tinto, ensuring its transition to renewable energy by 2033. The deal includes a 10-year below-market power supply guarantee and AUD$1.1 billion investment by Tomago Aluminium. The smelter produces 40% of Australia's annual aluminium.

UBS reports diversified miners are focusing on copper expansion for higher valuations. The bank rates Anglo American (£46 target) and Teck Resources (C$105 target) as buys, citing portfolio restructuring and earnings beats. Freeport-McMoRan (NYSE:FCX, $77 target) is also a buy due to Grasberg mine recovery. BHP, Rio Tinto, and Glencore are rated neutral with respective targets of £29.50, £73, and 570 pence. Shares of these companies showed mixed movements in afternoon trading.

McEwen Copper and Rio Tinto are negotiating a $4B financing deal for the Los Azules copper mine in Argentina, targeting 205,000 tonnes of copper cathodes annually from 2030. The project requires complex funding due to high upfront costs and remote location. Rio Tinto may invest $600M, with additional strategic investors sought. The debt structure includes export credit agencies, project finance, and mezzanine lending.

Rio Tinto rose after reports of a potential $600m investment in McEwen Copper. Miners like Antofagasta, Fresnillo, Glencore, and Anglo American also gained. IG Group fell after UBS cut its price target to 1,700p. Smith & Nephew dropped following CFO John Rogers' resignation announcement.

UK inflation rose to 2.9% year-on-year in July, driven by energy prices. Analysts expect further inflation due to energy and food price pressures. The FTSE 100 opened higher, led by mining stocks like Rio Tinto, Glencore, and Anglo American. Rio Tinto is reportedly in talks for a $600M investment in McEwen Copper. Shell and BP also gained, while Smith & Nephew dropped over 3% after its CFO stepped down. Geopolitical tensions in the Middle East are pushing oil prices higher. Oxford Nanopore Techn

Australia’s NSW and federal governments will fund AU$2.5 billion in renewables to power the Tomago aluminium smelter, announced Aug 13 by PM Anthony Albanese and NSW Premier Chris Minns. Tomago Aluminium (Rio Tinto, Norsk Hydro, others) will invest at least AU$1.1 billion. NSW caps its share at AU$1.225 billion over 10 years from 2029, with a new PPA to 2038 and full renewable supply from 2033.