Sumitomo sweeps up 30% stake in Winu project

Rio Tinto (ASX: RIO) and Sumitomo Metal Mining (SMM) have signed the final joint venture agreements to deliver the Winu copper-gold project in the Great Sandy Desert region of WA.

Under the agreements, Rio Tinto will continue to develop and operate Winu and SMM will pay Rio Tinto up to $430.4m for a 30% equity share of the project. This includes $195m up front and up to $235.4m in deferred considerations contingent on future milestones.

The Winu project is an attractive low-risk, long-life copper-gold deposit discovered by Rio Tinto in 2017. It is considered highly prospective for expansion beyond the initial development.

Rio Tinto Copper chief executive Katie Jackson says Rio’s relationship with SMM began in 2000 with a partnership at the Northparkes mine in NSW.

“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.

Sumitomo Metal Mining director, managing executive officer and mineral resources division general manager Hideyuki Okamoto comments on the partnership.

“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,” he said.

The parties will continue to work together to develop a broader strategic partnership to explore opportunities for commercial, technical and strategic collaboration across copper, other base metals and lithium.

Rio Tinto continues to focus on its partnerships with the Nyangumarta Traditional Owners and the Martu 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 WA EPA Environmental Impact Assessment process.

The transaction is expected to close in 2025, subject to regulatory approvals and the satisfaction of customary conditions.