Rio Tinto, Western Australia agree to sell desalination plant to Yindjibarndi WaterCo
Rio Tinto said on Monday it had agreed with the Western Australian government to sell their joint venture stakes in the Dampier Seawater Desalination Plant to Yindjibarndi WaterCo.
The plant, now owned equally by Rio Tinto and the government, has a construction budget of A$1.1-billion ($770.22-million) and is expected to supply eight gigalitres of desalinated water annually to the West Pilbara Water Supply Scheme.
Rio said terms of the deal were confidential and that it expected a binding deal by the end of the year. Until then, it would keep managing construction for the plant in Western Australia.
“The proposed divestment reflects Rio Tinto’s commitment to unlock capital as part of its strategy to deliver value for shareholders,” the company said, referring to its previously announced target of generating $5-billion to $10-billion through divestments.
Rio Tinto is set to report its half-year results on Wednesday.