Mining giant Rio Tinto and the Western Australian government have signed non-binding agreements to sell their respective joint venture shares in the AU$1.1 billion Dampier Seawater Desalination Plant to First Nations enterprise Yindjibarndi WaterCo.
Under the proposed transaction, targeted for binding execution by the end of the year, Yindjibarndi WaterCo will acquire and operate the facility once construction is complete.
Rio Tinto and the state government currently hold equal 50 per cent stakes in the joint venture.
The plant, located in Karratha, is set to deliver eight gigalitres (GL) of desalinated water annually into the West Pilbara Water Supply Scheme.
Water Corporation will enter a long-term agreement to purchase 4GL annually to supply drinking water to 10,000 homes across Karratha, Wickham, Roebourne, and Point Samson, supporting the state government’s Seven Cities regional development strategy. Rio Tinto will receive the remaining 4GL per year.
Importantly, shifting the region’s water reliance to desalination will significantly reduce environmental pressure on the culturally vital Bungaroo and Millstream aquifers, which are deeply significant to the Robe River Kuruma and Yindjibarndi peoples.
Construction of Stage 1, which has a 4GL annual desalination capacity, is slated for completion this year, with first water expected in early 2027. Stage 2 construction, adding another 4GL capacity, is also underway. Rio Tinto will continue to manage construction activities prior to the operational handover.
WA Premier Roger Cook highlighted the economic and cultural impact of the proposed sale, noting it reinforces the state’s regional water security while creating lasting economic returns for Traditional Owners.
“It will help deliver a secure supply of water needed to deliver job-creating projects which will help to diversify the city’s economy and keep WA’s economy the strongest in the nation,” Cook said.
Rio Tinto Iron Ore CEO Matthew Holcz said the desalination plant will meet the long-term needs of the community, while providing the miner’s water needs.
“While Rio Tinto will continue to receive four gigalitres of water annually from the desalination plant to offset abstraction from the Bungaroo aquifer, we do not need to own and operate the infrastructure,” Holcz said.
Yindjibarndi WaterCo Chair Michael Woodley welcomed the milestone as a major step toward economic self-determination.
“The agreement results from the Yindjibarndi people’s longstanding drive to protect water on our Ngurra (Country),” Woodley said.
“This is another step on the Yindjibarndi path to self-determination by delivering a secure, long-term economic return.”
