Rio Tinto and Sumitomo Metal Mining sign Definitive Agreement for Winu Project joint venture
PERTH, Australia--(BUSINESS WIRE)--Rio Tinto and Sumitomo Metal Mining Co (SMM) have signed the final joint venture agreements to deliver the Winu copper-gold project, located in the Great Sandy Desert region of Western Australia.
The final joint venture agreements were signed in Perth by Rio Tinto Copper Chief Executive Katie Jackson and SMM Director, Managing Executive Officer, and General Manager of the Mineral Resources Division Hideyuki Okamoto. It comes after the two companies signed a Term Sheet in December 2024 to form the joint venture.
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 said: 'Our relationship with SMM began in 2000 with our partnership at the Northparkes mine in New South Wales and we look forward to bringing our combined experience and expertise to deliver the Winu project.
'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.'
SMM Director, Managing Executive Officer, and General Manager of the Mineral Resources Division Hideyuki Okamoto said: '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.'
Under the agreements, Rio Tinto will continue to develop and operate Winu, and SMM will pay Rio Tinto up to $430.4 million for a 30% equity share of the project. This includes $195 million up front and up to $235.4 million in deferred considerations contingent on future milestones.
The parties will also 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.
The transaction is expected to close in 2025, subject to regulatory approvals and the satisfaction of customary conditions.
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 10 mtpa is expected to be completed in 2025, along with the submission of an Environmental Review Document under the Western Australian EPA Environmental Impact Assessment process.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
5 hours ago
- Yahoo
Rio Tinto revising cost of Serbia lithium project
BELGRADE (Reuters) -Rio Tinto is revising the cost of its Serbian lithium project that the European Commission identified as one of 13 strategic new critical material projects, Chad Blewitt, managing director of the Jadar lithium mine, said on Wednesday. The project is contested by green groups and many Serbs on environmental grounds, and sparked massive street protests in 2022 which led the government to revoke all Rio Tinto's exploration licences. The Constitutional Court overturned the decision last year and reinstated the licences. "The last time we went out to market and looked at the budget, it was over 2.55 billion euros ($2.91 billion). So we are currently in the midst of updating that capital cost," Blewitt told Reuters. "The strategic project status that we received today requires us to meet European Union environmental and human rights standards, and that will be reflected in the final capital cost." He could not be drawn into an estimate of the revised cost or timeline for the project - which was initially forecast to start production in 2027 - saying the Anglo-Australian giant also needed to obtain a field exploitation licence. "Once we... get the licence, we can then go and update the project schedules and have a look at costing. So I don't want to give a definitive date." Rio is the only major mining company to bet heavily on lithium - used in electric vehicle batteries - accelerating its push over the past six months with three new deals: its $6.7 billion buy of U.S.-based Arcadium Lithium and two projects in Chile for more than $1 billion. With the lithium market in the doldrums as a wave of new supply overwhelms weaker-than-expected demand for EV batteries, it will take years to know whether this bet will have paid off, although demand projections for the metal are more positive into the next decade. If implemented, Rio Tinto's Jadar project could meet 90% of Europe's current lithium needs. But protesters in Serbia have threatened to block roads and railways if the project goes ahead. "Whatever happens next will involve multiple stages of scrutiny and public consultation," Blewitt said. "It (the project) positions Serbia at the forefront of the green and digital revolution." ($1 = 0.8748 euros) Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
a day ago
- Yahoo
Tours of world's largest mine now available for the 2025 season
The Rio Tinto Kennecott mine, also known as the Bingham Canyon mine, opened its door to visitors for the 2025 season. Located southwest of Salt Lake City at the base of the Oquirrh Mountains, the iconic Kennecott mine is a human-made, open-pit copper mine operated by Rio Tinto. Sitting over a half-mile in depth and over 2 miles across, Rio Tinto Kennecott is the largest mine in the world. It's been operating for over a century, since its opening in 1903, producing more than 19 million tons of copper to date. During World War II, the Kennecott mine produced about 30% of the copper used by the Allies, establishing new records for copper mining. The self-guided tours, or 'Visitor Experience,' aim to spread consciousness about the role of the mine in modern life. The Kennecott mine supplies about 20% of the nation's refined copper, which is an essential element in today's infrastructure, manufacturing and technology. Guests can learn how ore is processed and turned into refined copper as well as safe mining practices and responsible environmental stewardship while seeing firsthand the gigantic scale of Kennecott's operation. The highlight of the visit includes a stop at the mine overlook, where guests can contemplate the gargantuan stature of the pit. The shuttle to the overlook runs every 30 minutes from 9:30 a.m. to 2:30 p.m. Tickets are available for purchase at the Rio Tinto Kennecott Visitor Experience's website, and should be booked in advance. Admission is $6 per person, and children under 5 enter for free. All proceeds go to the Kennecott Charitable Foundation, which supports local nonprofits. Walk-ins are allowed, but guests might not be able to see the mine overlook if the center is at capacity that day. The current visitor experience opened its new location in 2019 after a massive landslide buried the old visitor site along with several equipment trucks and fuel, according to Deseret News accounts, but there were no human casualties.
Yahoo
2 days ago
- Yahoo
Rio Tinto shares down after Jefferies cuts stock to Hold on emerging headwinds
-- Shares in Rio Tinto (NYSE:RIO) fell 2% in U.S. premarket trading Tuesday after Jefferies lowered its rating on the mining giant to Hold from Buy, citing a more balanced risk/reward profile amid a series of emerging headwinds. The brokerage cut its price targets across listings, with the Rio Plc target lowered from 5,700p to 4,600p and the Rio Ltd target from A$147 to A$115. 'We do not believe that Rio (or BHP) is 'broken'. We just consider the risk/reward tradeoff to be more balanced following recent developments,' analysts led by Christopher LaFemina. One of the key concerns is the uncertainty surrounding the company's strategic direction following the announcement that CEO Jakob Stausholm will step down later this year. The analysts noted that potential successors—including Simon Trott, Jérôme Pécresse, and Bold Baatar—bring different implications for future strategy, including M&A potential. 'Until the new CEO is announced, the strategic direction of Rio will be a risk,' the analysts noted. Jefferies also flags growing concerns around Rio's lithium investments. While seen as countercyclical, these projects carry risks of 'rising capital intensity and potentially low returns' if demand fails to meet Rio's expectations. As spending increases, near-term free cash flow (FCF) could be negatively affected without a corresponding boost in earnings, the analysts said. The team is also cautious on iron ore, which accounts for over 70% of Rio's net present value. The analysts expect the price to ease in the near term, citing trade tensions between the U.S. and China, structural steel capacity cuts in China, and seasonal weakness. 'We model $90/t in 3Q vs current spot of $95/t,' they wrote, with a long-term forecast in the $80–90/t range. 'A lower iron ore price is negative for Rio,' the analysts added. As for the political landscape, Jefferies points out that U.S. tariffs on Canadian aluminum, a key production region for Rio, could reduce profitability despite potential gains in regional pricing. Meanwhile, political developments in Mongolia may complicate operations at the Oyu Tolgoi project, though Jefferies' base case assumes no major disruption. In the mining sector, Jefferies now favors Glencore (OTC:GLNCY), Anglo American (JO:AGLJ), and Vale SA ADR (NYSE:VALE) over Rio Tinto and BHP Group Ltd (ASX:BHP), citing better positioning with respect to capital allocation and geopolitical exposure. Related articles Rio Tinto shares down after Jefferies cuts stock to Hold on emerging headwinds Music majors weigh AI licensing deals with generative startups, WSJ reports TSX closes higher, remains resilient despite trade tensions Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
