Rio Tinto and Sumitomo Metal Mining Partner on Winu Copper-Gold Project
Rio Tinto and Sumitomo Metal Mining (SMM) have signed a term sheet for a joint venture to advance the Winu copper-gold project, located in the Great Sandy Desert region of Western Australia. Under the agreement, Rio Tinto will continue to develop and operate Winu as the managing partner, while SMM will acquire a 30% equity share in the project for $399 million. This includes an upfront payment of $195 million and deferred considerations of $204 million contingent on agreed milestones.
The parties have also entered into a letter of intent to explore broader strategic opportunities, including commercial, technical, and strategic collaboration across copper, other base metals, and lithium. Winu, discovered by Rio Tinto in 2017, is considered a low-risk, long-life copper-gold deposit with potential for future expansion beyond the initial development.
The joint venture agreement is expected to be finalized in the first half of 2025, alongside the formalization of the broader strategic partnership. Rio Tinto will also continue to work closely with the Nyangumarta Traditional Owners, progressing negotiations on the Project Agreement. A pre-feasibility study for Winu, with an initial processing capacity of up to 10 million tonnes per annum, is expected to be completed in 2025, along with the submission of an Environmental Review Document under the EPA Environmental Impact Assessment process.
Katie Jackson, Chief Executive of Rio Tinto Copper, highlighted the importance of derisking the investment by working with an experienced partner like Sumitomo Metal Mining. She emphasized Rio Tinto's commitment to advancing the Winu project and delivering value across the metals and minerals supply chain, while also focusing on strong partnerships with Traditional Owners.
Hideyuki Okamoto, General Manager of the Mineral Resources Division at SMM, expressed excitement over renewing the long-standing relationship with Rio Tinto and exploring additional opportunities for collaboration.
