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Highlights
- Rio Tinto partners with Sumitomo for the Winu copper-gold project in Western Australia.
- Sumitomo secures a 30% stake in Winu for $615 million.
- Partnership aims to expand Rio Tinto’s footprint in copper, base metals, and lithium.
Rio Tinto (ASX:RIO) and Sumitomo Metal Mining (TSE:5713) have announced a strategic partnership to develop the Winu copper-gold project in Western Australia’s Great Sandy Desert. The agreement marks a pivotal step for Rio Tinto as it seeks to broaden its portfolio beyond iron ore, tapping into the growing global copper market.
As part of the agreement, Sumitomo Metal Mining will acquire a 30% stake in the Winu project for $615 million. This payment includes an upfront contribution of $312 million and milestone-based instalments worth $303 million. Rio Tinto will retain its role as operator and managing partner of the project while the two companies explore potential collaborations in other critical resources, including copper, base metals, and lithium.
The partnership represents a significant milestone in the development of the Winu project, discovered by Rio Tinto in 2017. With the project still in the pre-feasibility stage, Rio Tinto has already invested $417 million in exploration and development as of mid-2024. The Winu deposit is considered a long-life asset with promising potential for contributing to the global copper supply.
According to Rio Tinto’s copper division chief executive, the joint venture allows for risk-sharing while boosting the project’s potential to deliver strong returns. The collaboration also underscores Rio Tinto’s focus on aligning with partners to strengthen its standing in essential metals markets.
The pre-feasibility study for the Winu project is scheduled to conclude in 2025. It will include plans to develop processing facilities with an initial capacity of up to 10 million tonnes per annum. Additionally, environmental submissions are being prepared to support the development timeline.
This partnership is expected to play a key role in Rio Tinto’s diversification strategy, helping the company expand its reach in the copper market and reduce dependency on its traditional iron ore operations. Meanwhile, Sumitomo’s involvement reflects its ambition to strengthen its base metals portfolio amid rising global demand for copper, driven by clean energy and technological advancements.
The final agreements for the joint venture and related strategic collaborations are expected to be formalized in the first half of 2025, further solidifying the partnership between Rio Tinto and Sumitomo.
