Rio Tinto and the Western Australian Government have signed non-binding agreements for a proposed sale of their respective 50:50 joint venture shares in the Dampier Seawater Desalination Plant to Yindjibarndi WaterCo.
The agreements set out a framework for Yindjibarndi WaterCo to acquire and operate the plant, which has a construction budget of A$1.1 billion and is expected to supply 8GL of desalinated water annually to the West Pilbara Water Supply Scheme. A binding deal is targeted by year-end; terms remain confidential, with the sale price to depend on construction costs and other factors. Rio Tinto would continue managing construction, with operational control transferring to Yindjibarndi WaterCo afterward, subject to a binding agreement, due diligence and approvals.
A binding deal is targeted by year-end; terms remain confidential, with the sale price to depend on construction costs and other factors
Stage 1 (4GL annual capacity) is due for completion this year, with first water expected in early 2027, and is intended to reduce abstraction from the Bungaroo aquifer, culturally significant to the Robe River Kuruma People. Stage 2, also under construction, will add a further 4GL of capacity by 2027 and is expected to ease pressure on the Millstream aquifer, significant to the Yindjibarndi People. Rio Tinto would continue receiving 4GL of water annually to offset its Bungaroo abstraction.
Rio Tinto framed the divestment as part of its strategy to unlock capital and deliver shareholder value. WA Premier Roger Cook said the plant, part of the government’s Seven Cities vision, will support Karratha’s growth and economic diversification, and that a Yindjibarndi WaterCo acquisition could further empower Traditional Owners while protecting culturally significant water sources.
Rio Tinto Iron Ore CEO Matthew Holcz called Yindjibarndi WaterCo’s proposal “compelling” and said the deal reflects the company’s disciplined approach to capital allocation. Yindjibarndi Water Chairperson Michael Woodley described the agreement as a step toward self-determination, delivering long-term economic returns and growing operational capability through employment, training and contracting, and acknowledged the WA Government, Rio Tinto, and capability partners The Right Water Company and Affinity Capital Group.
