Indigenous-Led Water Future
Rio Tinto and WA Government Agree to Sell Dampier Desalination Plant to Yindjibarndi WaterCo
Anonymous
Key Points
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Rio Tinto Iron Ore Chief Executive Matthew Holcz said, "This project has the potential to create a lasting economic asset for the Yindjibarndi people, while supporting the long-term water needs of the West Pilbara."
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Western Australian Premier Roger Cook said the Dampier desalination project would not only help meet the water needs of Karratha's growing population but also support regional economic development.
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The transaction price is undisclosed/ confidential, with the sale price to be determined by construction costs and related factors.
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Stage 1 (4 GL/year) is expected to complete in 2026 with first water in 2027, while Stage 2 has commenced and will add another 4 GL with first water also expected in 2027.
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Rio Tinto’s shares rose about 0.4% in London trading on the announcement.
Rio Tinto and the Western Australian Government have signed non-binding agreements to sell their shares in the Dampier Seawater Desalination Plant to Yindjibarndi WaterCo, a company representing the Yindjibarndi people, according to MarketScreener and TipRanks. The plant, built at a cost of AUD 1.1 billion, is designed to deliver 8 gigalitres of desalinated water each year to the West Pilbara region. A binding deal is targeted by the end of 2025.
Rio Tinto's shares rose about 0.4% in London trading on the news, according to LSE. The sale price has not been disclosed but will be tied to construction costs and related factors.
Indigenous Group Set to Own Major Water Asset
Yindjibarndi WaterCo would take full ownership of the desalination plant once the sale closes, MarketScreener reported. This marks one of the most significant indigenous-led infrastructure outcomes in Australian history. Rio Tinto and the Western Australian Government each hold a 50% stake in the joint venture. Both parties plan to sell their shares to Yindjibarndi WaterCo.
Rio Tinto Iron Ore Chief Executive Matthew Holcz said, "This project has the potential to create a lasting economic asset for the Yindjibarndi people, while supporting the long-term water needs of the West Pilbara." Western Australian Premier Roger Cook added that the project would support both Karratha's growing population and wider regional economic development.
Plant Stages and Water Delivery Timeline
The plant is being built in two stages. Stage 1 has a capacity of 4 gigalitres per year. It is expected to finish construction in 2026 and deliver its first water in early 2027, according to TipRanks. Stage 2 has already begun and will add another 4 gigalitres per year, with first water also expected in 2027.
Rio Tinto will stay responsible for finishing construction. After the plant is complete, it will hand over operational control to Yindjibarndi WaterCo. Rio Tinto has also agreed to keep buying 4 gigalitres of treated water each year after the handover, according to LSE.
Protecting Sacred Groundwater for Local Peoples
The project was designed in part to ease pressure on underground water sources in the region, according to Mining Magazine. These aquifers are culturally significant to both the Robe River Kuruma and Yindjibarndi peoples. Over-reliance on groundwater risks damaging sites that hold deep cultural and spiritual meaning.
By switching to desalinated seawater, the West Pilbara Water Supply Scheme can reduce how much it draws from these sensitive sources. The plant's full 8 gigalitre annual output is meant to meet the long-term water needs of Karratha and surrounding communities as the region continues to grow.
Rio Tinto Aims to Free Up Capital With Sale
For Rio Tinto, the sale is about more than water. The company says the deal helps it "optimize capital allocation and unlock shareholder value," according to LSE. Selling the plant lets Rio Tinto redirect money toward its core mining business while still securing its long-term water supply through the purchase agreement.
The transaction price remains confidential and will be set based on construction costs once the binding deal is signed, TipRanks reported. Both sides are working toward a final agreement before the end of 2025.
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