By Stuart Condie


SYDNEY--Australian mining giant Rio Tinto will sell a 30% equity stake in its Winu copper-gold project to Sumitomo Metal Mining for $399 million, under a new joint venture with the Japanese producer.

Rio Tinto on Wednesday said Sumitomo will pay $195 million up front for the stake in the Western Australia project, with the remainder to be paid in deferred considerations tied to milestones.

The companies have signed a term sheet to work toward a definitive agreement, which Rio Tinto expects to be finalized in the first half of 2025.

The miners also expect to develop a broader strategic partnership focused on opportunities to collaborate on copper, base-metals, and lithium projects.

"This is a unique opportunity to de-risk our investment as we work with an experienced partner," Rio Tinto Copper Chief Executive Katie Jackson said.

Winu is centered on a copper-gold deposit discovered by Rio Tinto in 2017, close to its iron -ore assets in the Pilbara region.


Write to Stuart Condie at stuart.condie@wsj.com


(END) Dow Jones Newswires

12-03-24 1705ET