Rio Tinto and Sumitomo Metal Mining have signed final agreements to accelerate the development of the Winu copper-gold project in the Great Sandy Desert in Western Australia.
Under the joint venture agreement, Sumitomo will pay Rio Tinto up to $430.4 million for a 30 per cent stake in Winu, including $195 million upfront and up to $235.4 million in deferred payments tied to project milestones.
The long-standing partners were represented by Rio Tinto copper chief executive Katie Jackson and Sumitomo director and managing executive officer and general manager of the mineral resources division Hideyuki Okamoto.
“Our relationship with SMM began in 2000 with our partnership at the Northparkes mine in New South Wales and we look forward to bringing our combined experience and expertise to deliver the Winu project,” Jackson said.
“This partnership is an excellent fit for Rio Tinto and will strengthen the project, as we continue to prioritise the strong and enduring partnerships built to date with the land’s Traditional Owners, the Nyangumarta and the Martu,” she said.
The pre-feasibility study for the Winu project is projected to be completed in 2025, based on an initial processing capacity of up to 10 million tonnes per annum.
The companies plan to pursue a broader strategic partnership to explore opportunities for commercial, technical and strategic collaboration across copper, other base metals and lithium.
“We are very excited to renew our long-standing partnership with Rio Tinto, and to leverage our extensive collective experience to realise the exceptional potential of the Winu project,” Okamoto said.
The transaction is expected to close in 2025, subject to regulatory approvals and customary conditions.