Rio Tinto to sell 50% stake in Australian seawater desalination plant

Rio Tinto PLC on Monday said it has agreed to sell its interest in the Dampier seawater desalination plant joint venture to Yindjibarndi WaterCo, at an undisclosed price.

The London-based miner holds a 50% stake in the venture along with the Western Australian state government.

Under the agreement, which is expected to close by the end of 2026, Yindjibarndi WaterCo will acquire and operate the plant, buying out both Rio Tinto and the Western Australia government.

Yindjibarndi WaterCo is part of Yindjibarndi Aboriginal Corp, the corporate body which represents the Yindjibarndi people, an indigenous group from the Pilbara region of Western Australia.

"This project has the potential to create a lasting economic asset for the Yindjibarndi people, while supporting the long-term water needs of the West Pilbara," said Rio Tinto Iron Ore Chief Executive Matthew Holcz.

The plant is expected to provide 8 gigalitres of desalinated water into the West Pilbara water supply scheme.

Terms of the transaction are confidential, with the sale price subject to construction costs and related factors, Rio Tinto said.

Rio Tinto will remain responsible for managing the construction activities for the plant, with operational control proposed to transfer to Yindjibarndi WaterCo following construction completion.

Rio Tinto said the disposal reflects a commitment to "unlock capital as part of its strategy to deliver value for shareholders".

Shares in Rio Tinto were up 0.4% at 6,895.00 pence each in London on Monday.

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