Rio Tinto (ASX:RIO) has partnered with Sumitomo Metal Mining (TYO:5713) to jointly develop the Winu Copper-Gold Project in Western Australia.
The companies signed a term sheet outlining the framework for a joint venture, with definitive agreements expected next year. Rio Tinto will manage and operate Winu, while Sumitomo secures a 30% stake.
Sumitomo’s Stake and Investment
Sumitomo will pay Rio Tinto $399 million for its share in the Winu Project. The payment includes $195 million upfront, with $204 million deferred and tied to specific milestones. Both companies aim to finalise agreements for the joint venture in the first half of 2025.
Prefeasibility Study Expected in 2025
Rio Tinto plans to complete a Prefeasibility Study for Winu next year. The study will outline an initial processing capacity of up to 10 million tonnes annually.
Also Read: Commonwealth Bank Pauses Controversial $3 Cash Withdrawal Fee Amid Backlash
Strong Partnership History
Katie Jackson, Rio Tinto’s Copper CEO, highlighted the longstanding collaboration between the companies.
“This is a unique opportunity to de-risk our investment, as we work with an experienced partner,” Jackson stated.
“Progress in 2024, including the attractive partnership proposal from Sumitomo Metal Mining, has cemented the path forward for Winu to deliver profitable growth.”
Jackson also emphasised the importance of collaboration with local communities.
“We will continue to advance the Winu Project in close partnership with Nyangumarta Traditional Owners and the Karlkayn airstrip with the Martu Traditional Owners, in a way that benefits all parties,” she said.
Broader Strategic Partnership
In addition to the joint venture, Rio Tinto and Sumitomo signed a letter of intent to explore further collaboration. This partnership will focus on opportunities in copper, base metals, and lithium, aiming to combine technical and strategic expertise.
Winu: A Key Project in Pilbara
Discovered in 2017, the Winu Copper-Gold Project is located near Rio Tinto’s iron ore operations in the Pilbara region. The project represents a significant growth opportunity for Rio Tinto in Western Australia.
About Sumitomo Metal Mining
Sumitomo Metal Mining specialises in battery manufacturing and the mining, smelting, and refining of non-ferrous metals. The company operates globally, with a strong focus on copper and base metals essential for the energy transition.
Looking Ahead
The collaboration between Rio Tinto and Sumitomo marks a significant step in advancing Winu. With definitive agreements and a Prefeasibility Study expected in 2025, the partnership aims to deliver long-term benefits for stakeholders.
