Highlights
- Sumitomo Metal Mining (SMM) acquires a 30% equity stake in Rio Tinto's Winu copper-gold project for $399 million.
- The Winu project, located in Western Australia, is poised for long-term copper-gold production and potential expansion.
- The collaboration includes a strategic partnership to explore further opportunities in copper, base metals, and lithium.
Rio Tinto and Sumitomo Metal Mining (SMM) have signed a Term Sheet to form a joint venture for the Winu copper-gold project, located in the Great Sandy Desert of Western Australia. This agreement establishes SMM's 30% equity stake in the project, valued at $399 million, comprising $195 million upfront and $204 million in deferred payments based on agreed milestones and adjustments.
Strategic Investment
Rio Tinto, which discovered the Winu deposit in 2017, will remain the managing partner responsible for the project's ongoing development and operation. The deposit is described as a low-risk, long-life copper-gold resource with significant potential for expansion. Its proximity to Rio Tinto's Pilbara iron ore operations enhances the project's logistical and operational appeal.
The deal underscores Winu's strategic importance in meeting growing global demand for copper, a critical mineral for renewable energy and electrification.
Broader Strategic Partnership
In addition to the joint venture, Rio Tinto and SMM have signed a letter of intent to establish a broader partnership. This initiative will explore collaborative opportunities in commercial, technical, and strategic areas, particularly in copper, base metals, and lithium. Such collaboration could pave the way for further resource development and innovation in sustainable mining practices.
Next Steps
The two companies aim to finalize a binding Definitive Agreement for the joint venture in the first half of 2025. Meanwhile, Rio Tinto will advance the Winu project's pre-feasibility study, focusing on an initial processing capacity of up to 10 million tonnes per annum (mtpa). The study and an Environmental Review Document submission under Western Australia's EPA Environmental Impact Assessment process are both expected to be completed in 2025.
Additionally, Rio Tinto will continue engaging with the Nyangumarta Traditional Owners to progress Project Agreement negotiations. This ongoing partnership ensures that the project's development aligns with community and environmental considerations.