Rio Tinto And Sumitomo Metal Mining Partner On Winu Copper-gold Project

(RTTNews) - Rio Tinto Plc. (RTPPF.PK, RIO.L, RIO, RTNTF.PK) said that the company and Sumitomo Metal Mining 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.

As per 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 companies 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 development1. 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 negotiations2. 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.