Mining giant Rio Tinto has partnered with Sumitomo Metal Mining (SMM) to advance the Winu copper-gold project in the Great Sandy Desert region in Western Australia.
SMM will acquire a 30% equity share in the project for $399m, which includes an upfront payment of $195m and deferred considerations.
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The Winu project, discovered by Rio Tinto in 2017, is a low-risk, long-life copper-gold deposit with potential for expansion.
It is strategically located near Rio Tinto’s Pilbara iron ore assets and is currently under development. The rights to develop and operate the project will continue to be held by the managing partner Rio Tinto.
Rio Tinto and SMM aim to finalise the Winu project JV agreements and formalise their strategic partnership by mid-2025.
In addition to the JV, the companies have entered a letter of intent to establish a broader strategic partnership, which aims to explore commercial, technical and strategic collaboration opportunities across copper, other base metals and lithium sectors.
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By GlobalDataRio Tinto will continue its engagement with the Nyangumarta Traditional Owner Group to progress project agreement negotiations.
Rio Tinto Copper chief executive Katie Jackson said: “We share a long history with Sumitomo Metal Mining as partners and deeply value the commitment they will bring to the Winu project. This is a unique opportunity to derisk our investment, as we work with an experienced partner. We look forward to working more broadly as strategic partners to find new ways to deliver value across the metals and minerals supply chain.
“Progress in 2024 including the attractive partnership proposal from Sumitomo Metal Mining has cemented the path forward for Winu to deliver profitable growth. We will continue to advance the Winu project in close partnership with the Nyangumarta Traditional Owners and the Karlkayn airstrip with the Martu Traditional Owners, in a way that benefits all parties.”
The pre-feasibility study for the Winu project, which includes a processing capacity of up to ten million tonnes per annum, is expected to be completed in 2025. This will coincide with the submission of an environmental review document as part of the Environmental Protection Agency’s environmental impact assessment process.
Completion of the transaction is contingent upon obtaining necessary consents and approvals, as well as meeting customary conditions.
Sumitomo Metal Mining Mineral Resources Division general manager Hideyuki Okamoto said: “We look forward to renewing our long-standing relationship with Rio Tinto by partnering on the highly attractive Winu Project. We are also excited to explore further opportunities for collaboration given the strong alignment between our companies.”
Rio Tinto announced the maiden discovery at its Winu copper-gold deposit in 2020.
