ASX: RIO shares are gaining traction today after an exciting update from the mining giant.

In morning trading, Rio Tinto Ltd’s shares climbed by 1.5%, trading at $120.60. The positive momentum follows the announcement of a promising new venture in Western Australia.

Key Highlights of the Announcement

Earlier today, Rio Tinto revealed it has entered into a partnership with Sumitomo Metal Mining (SMM) to advance its Winu copper-gold project, located in the Great Sandy Desert.

Under the agreed term sheet, SMM will invest A$615 million (US$399 million) for a 30% equity share in the Winu project. The investment will be split into:

• US$195 million upfront payment.
• US$204 million in deferred considerations, contingent on specific milestones and other agreed adjustments.

Rio Tinto will remain the managing partner, responsible for the continued development and operation of the project.

What Makes the Winu Project Exciting?

Discovered in 2017, the Winu copper-gold deposit is characterized as a low-risk, long-life resource with significant potential for expansion. Its strategic location near Rio Tinto’s Pilbara iron ore assets offers logistical advantages and supports future scalability.

This project also represents an opportunity for Rio Tinto to diversify further into copper, a metal critical for the global transition to renewable energy.

The Winu project is progressing towards:

• A pre-feasibility study, targeted for completion in 2025.
• Submission of an Environmental Review Document that same year.

Beyond Winu: A Broader Strategic Partnership

Rio Tinto and SMM have also signed a letter of intent to explore collaborative opportunities in copper, base metals, and lithium. This broader partnership aims to unlock further value across the supply chain.

Katie Jackson, Rio Tinto’s Chief Executive of Copper, emphasized the significance of this agreement:

“This partnership with Sumitomo Metal Mining de-risks our investment and positions Winu for profitable growth. We’re excited to expand our collaboration to drive innovation across metals and minerals processing.”

Strengthening Indigenous Partnerships

Rio Tinto remains committed to fostering strong relationships with Traditional Owners in the region. Key ongoing efforts include:

• Partnering with the Nyangumarta Traditional Owners on project agreement negotiations.
• Collaborating with the Martu Traditional Owners on the development of the Karlkayn airstrip.

The Road Ahead

Definitive agreements for the Winu joint venture are expected to be finalized in the first half of 2025. Once completed, this partnership could be a game-changer for Rio Tinto as it strengthens its position in the global copper market.

Although ASX: RIO shares remain down 5% over the past 12 months, today’s news offers renewed optimism for investors seeking growth opportunities in the mining sector.