Rio Tinto, Sumitomo Metal Mining to Collaborate on Winu Copper-Gold Project

SEATTLE (Scrap Monster): Rio Tinto and Sumitomo Metal Mining (SMM) have signed a term sheet to work on the Winu copper-gold project in Western Australia's Great Sandy Desert. The transaction will be closed only if all relevant regulatory clearances and customary closing conditions have been met.

As a result, Rio Tinto will continue to develop and run the Winu copper-gold project as managing partner. Additionally, SMM will pay Rio Tinto $399 million for a 30% ownership stake in the project. The Term Sheet also includes exclusivity requirements to strive toward a binding Definitive Agreement.

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The two sides have also agreed to work on finalizing definitive arrangements for the joint venture project by the first half of 2025. A pre-feasibility study for the Winu project is planned to be completed by 2025. According to a corporate news release, the filing of an Environmental Review Document under the EPA Environmental Impact Assessment process is also expected around the same time.

Rio Tinto Copper CEO Katie Jackson stated that the company and SMM have a long history as collaborators. It values SMM's dedication to the Winu project. Jackson noted that the organization looks forward to expanding its strategic partnerships.

The Winu project is located close to Rio Tinto’s Pilbara iron ore assets.