Rio Tinto: Green Light for Winu, but Headwinds from China
On September 10, Rio Tinto signed a project agreement with the Nyangumarta Warrarn Aboriginal Corporation. The traditional owners have thus approved the Winu copper-gold project in Western Australia’s Great Sandy Desert. The agreement builds on a 2023 planning agreement and governs future collaboration. Winu is the company’s most advanced copper project, in which it holds a 70% stake. First production is targeted for 2030. Permits and the final investment decision are still pending. If both are successful, the company will have another string to its bow in the copper sector.
Two days earlier, less encouraging news came from China. The state-owned China Minerals Resources Group has prohibited steel mills from negotiating Pilbara Blend shipments for now, as contract talks enter a decisive phase. Last year, China accounted for nearly 60% of the group’s revenue. At BHP, the same power struggle dragged on for months and ended with a one-year contract running through June 2027, including a higher proportion of payments in yuan. Fortescue continues to suffer from the dispute with the state-owned buyer. Beijing holds the upper hand.
In the aluminum sector, companies are expanding their raw material base. In early September, Rio Tinto announced the acquisition of the Aurukun bauxite project in Queensland from Glencore and Mitsubishi Development; no price was disclosed. According to current plans, up to 15 million metric tons of raw ore are to be mined there annually, yielding up to 8 million metric tons of export-grade bauxite. Nearby, the company has long been operating its own mines. Since mid-August, the Tomago smelter has been a done deal, with a power agreement through 2038 and AUD 1.1 billion in investments, including AUD 100 million for decarbonization. The ore-to-smelter chain is in place.
Globex Mining: When Others Pay for the Drilling
Those who invest in the commodities sector usually pay for drill holes that have not yet yielded anything. Globex Mining has been taking a different approach for decades. The Canadians secure properties at bargain prices, conduct geological evaluations, and pass them on to partners via option agreements. They retain a royalty—that is, license revenue upon the start of production—every time. The portfolio includes more than 275 projects, almost all in North America, spanning gold, silver, copper, zinc, lithium and antimony. The portfolio offers nearly every commodity. Ongoing option and royalty payments flow from over 100 investments. The company has no debt.
On August 26, 2026, Globex launched a drilling program at its 100% owned Wood/Central Cadillac project in Quebec. The plan calls for 4,800 m across 11 holes using two drill rigs. The focus is on the historic gold mineralization along the Larder Lake-Cadillac shear zone, approximately 45 km east of Rouyn-Noranda. Neighbouring properties include producing mines such as Agnico Eagle’s LaRonde and IAMGOLD’s Westwood. Afterward, the drilling rigs will move on to the Rouyn-Merger property, where 1,335 m are to be drilled across 9 holes. A second phase is planned for the winter of 2027.
The partners are also delivering results. On September 9, 2026, Emperor Metals reported 24.1 m at 2.6 g/t gold from the Duquesne West Globex project, including 7.1 m at 7.5 g/t at a depth of approximately 35 m. Only 42 of the 66 drill holes have been evaluated so far. Two weeks earlier, royalty partner Radisson began underground exploration at O’Brien, financed by CAD 57.16 million from Agnico Eagle. Globex holds two royalty interests there. If the partners succeed in moving into production, these paper rights could turn into real revenue. Until then, others are drilling at their own expense and continuing to develop the projects.
Franco-Nevada: Royalty Giant with an Ace Up Its Sleeve in Panama
Franco-Nevada does not operate a single mine. The company buys royalties and streams and lets others do the work. Its portfolio includes 447 investments, 121 of which are already generating cash flow. Gold accounted for 70% of revenue in the second quarter, silver for 14%, and the remainder came from platinum group metals, oil, gas, and iron ore. The bulk of revenue, at 88%, comes from North and South America. With no capital expenditures or maintenance costs, expenses remained low at USD 344 per gold-equivalent ounce in the first half of the year. The adjusted EBITDA margin stood at 91.2%. The company has no debt.
On August 12, the Canadian company reported its second-quarter results. Revenue climbed 57% to USD 580.9 million, and adjusted profit rose 46% to USD 349.2 million. Sales totalled 132,405 gold-equivalent ounces, up 18% from the previous year. By comparison, the total for the first half of the year was 268,758 ounces. New contributions came from Côté Gold, Casa Berardi, and Valentine, while Antamina increased its revenue contribution from USD 23.3 million to USD 57.4 million. Record-high gold and oil prices worked in the group’s favour.
On September 13, the company invested an additional AUD 200 million in Minerals 260’s Bullabulling project. AUD 170 million will go toward an additional 1.45% royalty, raising the total stake to 3.90%, and AUD 30 million toward a planned capital increase. As of the end of June, USD 4.3 billion in available capital was on the books. However, the real leverage lies in Panama. An environmental assessment certified Cobre Panamá as 87.7% compliant; since then, a ministerial commission has been reviewing the project’s restart. If approved, it would add 170,000 ounces per year to production. Until then, the company will continue to rely on stockpiled material.
The simultaneous copper and gold boom is rewarding different business models. Rio Tinto is securing an integrated raw materials base with Winu, Aurukun, and Tomago, but remains dependent on China’s demand power. Globex Mining has partners drill and collects royalties without bearing high exploration risks itself. Franco-Nevada, as a debt-free royalty giant, is benefiting from record prices and is pinning its hopes on the restart of Cobre Panamá. Supply shortages remain the key factor: Those who are broadly diversified and think long-term can reap disproportionately high returns for years to come.
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