Rio sells 30% of Winu, Sumitomo pays $618m

Rio Tinto (ASX: RIO) and Sumitomo Metal Mining (SMM) have reached an agreement on the Winu copper-gold project in the Great Sandy Desert region of WA, with the Japanese giant paying $618m (US$399m) for a 30% share of the project.

The Winu project is a long-life copper-gold deposit discovered by Rio Tinto in 2017, close to the miner’s Pilbara iron ore operations.

The global miner will continue to develop and operate the project as a managing partner, with both companies intending to work together more on exploring other commercial, technical and strategic opportunities across copper, other base metals and lithium.

Rio Tinto Copper chief executive Katie Jackson comments on this.

“We share a long history with Sumitomo Metal Mining as partners and deeply value the commitment they will bring to the Winu project,” she said.

“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 also commented.

“We look forward to renewing our long-standing relationship with Rio Tinto by partnering on the highly attractive Winu Project,” he said.

“We are also excited to explore further opportunities for collaboration given the strong alignment between our companies.”

Rio Tinto and Sumitomo 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 negotiations.

A pre-feasibility study for the Winu project with an initial development of processing capacity of up to 10mtpa is expected to be completed in 2025, along with the submission of an Environmental Review Document under the EPA Environmental Impact Assessment process.

The closing of the transaction will be subject to obtaining any necessary consents and approvals, and the satisfaction of customary conditions.