Allens has advised Rio Tinto on its entry into a Term Sheet for a joint venture with Sumitomo Metal Mining Co., Ltd (Sumitomo) to deliver the Winu cooper-gold project (Winu Project) and accompanying letter of intent to develop a broader strategic partnership between Rio Tinto and Sumitomo to work together to explore opportunities for commercial, technical and strategic collaboration across copper, other base metals and lithium.
The Winu Project is a copper-gold deposit located in the Great Sandy Region of Western Australia, approximately 320 kilometres east of Port Hedland.
Under the Term Sheet, Rio Tinto proposes to sell a 30% interest in the Winu Project to Sumitomo for US$195 million upfront and US$204 million in deferred consideration contingent on milestones and adjustments to be agreed in the definitive documentation. The parties will now work to finalise definitive agreements in the first half of 2025.
A cross-practice team from Allens led by Partners Igor Bogdanich and Jodi Reinmuth, and supported by Managing Associate George Salter is advising Rio Tinto on all aspects of the proposed sale and joint venture arrangements.
'We are pleased to be working closely with Rio Tinto Copper on the sale and joint venture of interests in the Winu Project, and congratulate both Rio Tinto and Sumitomo Metal Mining for reaching this significant milestone in the transaction' said lead Partners Igor Bogdanich and Jodi Reinmuth.
'With a strong demand outlook for copper driven by the energy transition, and known supply constraints in the next decade, high-quality copper assets such as the Winu Project will continue to be highly sought after. We expect to see further M&A activity, as well as meaningful partnerships and alliances, in the copper sector as the market continues to seek secure and stable supply.'
Allens legal team
M&A and Projects
Igor Bogdanich (Partner), Jodi Reinmuth (Partner), George Salter (Managing Associate), Emma McLaughlin (Associate), Alexander Anile (Associate), Lewis Pope (Associate), Francesca Bailey (Lawyer)
Tax
Ellen Thomas (Partner), George Bishop (Senior Associate)
FIRB
Andrew Wong (Mergers & Acquisitions Counsel)
Competition
John Hedge (Partner)