Rio Tinto and Sumitomo Metal Mining (SMM) have signed a Term Sheet to establish a Joint Venture for the Winu copper-gold project in Western Australia’s Great Sandy Desert. Under this agreement, which includes exclusivity provisions, Rio Tinto will continue as the managing partner to develop and operate the project, while SMM will acquire a 30% equity stake for $399 million. The payment comprises $195 million upfront and $204 million in deferred considerations tied to milestones and agreed adjustments.

The two companies have also signed a letter of intent to pursue a broader strategic partnership focused on exploring collaborative opportunities in copper, other base metals, and lithium. Discovered by Rio Tinto in 2017, Winu is a low-risk, long-life deposit with strong potential for expansion beyond its initial phase. Its location near Rio Tinto’s Pilbara iron ore operations adds strategic value to the development.

Definitive agreements for the joint venture are expected to be finalized in the first half of 2025, along with the formalization of the broader partnership. Rio Tinto is also advancing negotiations with the Nyangumarta Traditional Owners to solidify project agreements and ensure benefits for local communities. The Winu project’s pre-feasibility study, focused on an initial processing capacity of up to 10 million tonnes per annum, is anticipated to be completed in 2025, along with the submission of an Environmental Review Document as part of the Environmental Protection Authority’s review process.

Katie Jackson, Rio Tinto Copper Chief Executive, emphasized the long-standing partnership with SMM, stating: “This collaboration with Sumitomo Metal Mining brings valuable expertise and helps derisk our investment in Winu. We are excited to explore additional opportunities as strategic partners to create value across the metals and minerals supply chain. We remain committed to advancing the Winu project in partnership with the Nyangumarta Traditional Owners and other stakeholders to ensure mutual benefits.”

Hideyuki Okamoto, General Manager of SMM’s Mineral Resources Division, highlighted the significance of the partnership, saying: “This collaboration with Rio Tinto on the promising Winu Project renews our long-standing relationship. We look forward to exploring further opportunities for alignment and growth with Rio Tinto.”

The transaction is subject to regulatory approvals, necessary consents, and other customary conditions. With this partnership, both Rio Tinto and SMM aim to solidify Winu’s role as a significant project in the copper and gold sector while exploring innovative pathways for growth in metals critical to the energy transition.

Rio Tinto operates in 35 countries, employing 57,000 people dedicated to discovering innovative ways to supply essential materials for the world’s needs. Its portfolio encompasses iron ore, copper, aluminum, and a variety of other minerals and materials that support the growth and prosperity of individuals, communities, and nations, while contributing to global efforts to achieve net-zero carbon emissions.