Rio Tinto and WA Government sign non-binding agreements to sell Dampier desalination plant to Yindjibarndi WaterCo

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โดย Business Wire·Read original
Summary · why it matters

Rio Tinto and the Western Australian Government have signed non-binding agreements for a proposed sale of their respective joint venture shares in the Dampier Seawater Desalination Plant to Yindjibarndi WaterCo. The plant, a 50:50 joint venture between Rio Tinto and the WA Government, has a construction budget of A$1.1 billion and is expected to provide 8 gigalitres of desalinated water into the West Pilbara Water Supply Scheme. A binding deal is targeted by the end of the year, with terms confidential and the sale price subject to construction costs and related factors. Construction of Stage 1, with a 4 gigalitre annual capacity, is expected to be completed this year with first water in early 2027, while Stage 2 construction has commenced and will add a further 4 gigalitres of annual capacity with first water expected in 2027. Rio Tinto will remain responsible for managing construction activities, with operational control proposed to transfer to Yindjibarndi WaterCo following construction completion, subject to a binding divestment agreement, due diligence processes and relevant approvals.

Impact on stocks 1

Critical Materials & Supply Chain▲ · 1 stocks
Rio Tinto PLC
RIO
± MixedCapitalrelevance

Rio Tinto is selling its stake in the desalination plant, but terms are confidential and sale price depends on construction costs; impact unclear until binding deal.

Theme Impact 2

Off-coverage companies 1

Yindjibarndi WaterCoPrivate▲ Positive
Demandrelevance

Yindjibarndi WaterCo is the buyer, gaining ownership of a major water infrastructure asset, which is positive for its business.

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