Rio Tinto and the Western Australian Government have signed non-binding agreements for a proposed sale of their joint venture shares in the Dampier Seawater Desalination Plant to Yindjibarndi WaterCo, according to a press release from Rio Tinto.

Rio Tinto and the WA Government each hold a 50% stake in the plant, which carries a construction budget of A$1.1 billion and is expected to supply 8 billion liters of desalinated water annually into the West Pilbara Water Supply Scheme.

A binding deal is targeted by the end of 2026. The sale price is subject to construction costs and related factors, with terms of the transaction described as confidential. Rio Tinto will continue managing construction, with operational control proposed to transfer to Yindjibarndi WaterCo upon completion, subject to a binding divestment agreement, due diligence, and relevant approvals.

Construction of Stage 1, with a 4 billion liter annual capacity, is expected to complete in 2026, with first water anticipated in early 2027. Stage 2, which adds a further 4 billion liters of annual capacity, is also underway, with first water expected in 2027.

Rio Tinto Iron Ore Chief Executive Matthew Holcz said Rio Tinto will continue to receive 4 billion liters of water annually from the plant to offset abstraction from the Bungaroo aquifer, but does not need to own and operate the infrastructure.

Yindjibarndi Water Chairperson Michael Woodley said the agreement reflects the Yindjibarndi People's goal to protect water on their country and build long-term economic returns through self-determination.