REG - Rio Tinto - Sumitomo to partner on Winu copper-gold project

Rio TintoAnnouncement

04/12/2024 07:00

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RNS Number : 7068O  Rio Tinto PLC  04 December 2024

 

Notice to
ASX/LSE

 

Rio Tinto and Sumitomo Metal Mining to partner on Winu copper-gold project

4 December 2024

 

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 development 1 . 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 negotiations 2 . 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.

LEI: 213800YOEO5OQ72G2R82

Contacts

Please direct all enquiries to media.enquiries@riotinto.com

 

 

 

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This announcement is authorised for release to the market by Andy Hodges, Rio
Tinto's Group Company Secretary.

 

 

 

 

riotinto.com

(( 1 )) $438 million total investment to June 2024, including all exploration
and project spend.

 2  Project 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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