Rio Tinto and Sumitomo Metal Mining (SMM) will partner to develop the Winu copper-gold project in the Great Sandy Desert, Western Australia.
The agreement will see Rio develop and operate Winu as managing partner, with SMM paying the major $399 million for a 30 per cent equity share of the project.
The $399 million includes $195 million upfront and $204 million in deferred considerations contingent on milestones and adjustments to be agreed.
Rio discovered Winu back in 2017 and is looking to finalise the project in the first half of 2025.
Rio Tinto copper chief executive Katie Jackson said the major shares a long history with SMM and values the commitment it will bring to Winu.
“This is a unique opportunity to de-risk our investment, as we work with an experienced partner,” Jackson said. “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.”
SMM general manager of mineral resources Hideyuki Okamoto said the company is looking forward to working on the project.
“We are also excited to explore further opportunities for collaboration given the strong alignment between our companies,” Okamoto said.