Rio Tinto Sells 30% Stake in Winu Copper-Gold Project to Sumitomo for $399 Million
Rio Tinto Plc has agreed to sell a 30% stake in its Winu copper-gold project in Western Australia to Japan’s Sumitomo Metal Mining Co. for $399 million.
Under the terms of the deal, Sumitomo will pay $195 million upfront and an additional $204 million in deferred payments tied to development progress, Rio Tinto said in a statement on Wednesday. The two companies also plan to explore further partnership opportunities across copper, other base metals, and lithium.
Katie Jackson, Rio Tinto’s Chief Executive of Copper, described the transaction as a “unique opportunity to derisk our investment,” adding that the company looks forward to exploring new ways to create value as strategic partners across the metals and minerals supply chain.
The Winu copper-gold deposit, located in the remote Great Sandy Desert region of Western Australia, was discovered by Rio Tinto in 2017 and is still in the development phase. A pre-feasibility study on building a mine is expected to be released in 2025.
While Rio Tinto, like BHP Group Ltd., is focused on increasing its exposure to copper — a key metal for electrification — the Winu deposit is considered smaller compared to its flagship Escondida mine in Chile.
