Rio Tinto and Sumitomo Metal Mining to partner on Winu copper-gold project
03 Dezembro 2024 - 6:25PM
Business Wire
Rio Tinto and Sumitomo Metal Mining (SMM) have signed a Term
Sheet for a Joint Venture to deliver the Winu copper-gold project,
located in the Great Sandy Desert region of Western Australia.
Under the Term Sheet, which includes exclusivity obligations to
work towards a binding Definitive Agreement, Rio Tinto will
continue to develop and operate Winu as managing partner and SMM
will pay Rio Tinto $399 million for a 30% equity share of the
project. This includes $195 million upfront and $204 million in
deferred considerations contingent on milestones and adjustments to
be agreed.
The parties have also entered into a letter of intent to develop
a broader strategic partnership to work together to explore
opportunities for commercial, technical and strategic collaboration
across copper, other base metals and lithium.
The Winu project is an attractive low-risk, long-life
copper-gold deposit discovered by Rio Tinto in 2017, that is highly
prospective for expansion beyond the initial development1. It is
located in proximity to Rio Tinto’s Pilbara iron ore assets.
Rio Tinto and SMM will now work to finalise definitive
agreements for the Winu project joint venture in the first half of
2025, along with formalising the broader strategic partnership. Rio
Tinto will also continue to focus on its partnership with the
Nyangumarta Traditional Owners, including progressing Project
Agreement negotiations2. A pre-feasibility study for the Winu
project with an initial development of processing capacity of up to
10 mtpa is expected to be completed in 2025, along with the
submission of an Environmental Review Document under the EPA
Environmental Impact Assessment process.
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.”
Sumitomo Metal Mining General Manager of Mineral Resources
Division 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.”
The closing of the transaction will be subject to obtaining any
necessary consents and approvals, and the satisfaction of customary
conditions.
This announcement is authorised for release to the market by
Andy Hodges, Rio Tinto’s Group Company Secretary.
1$438 million total investment to June
2024, including all exploration and project spend.
2Project Agreements are being progressed
with the Nyangumarta Traditional Owner Group for the Winu project
and the Martu Traditional Owner Group for the Karlkayn
airstrip.
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version on businesswire.com: https://www.businesswire.com/news/home/20241203706021/en/
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