The agreements establish the framework for Yindjibarndi WaterCo to acquire and operate the facility, with the parties aiming to finalize a binding agreement by the end of the year. While the financial terms of the transaction were not disclosed, the sale price will be determined based on the plant's construction costs and other related factors.
Built with a total investment of AUD 1.1 billion, the Dampier Seawater Desalination Plant is expected to supply 8 gigalitres (GL) of treated water annually to the West Pilbara Water Supply Scheme.
Under the agreement, Rio Tinto will continue to manage the construction phase. Operational control of the facility is expected to be transferred to Yindjibarndi WaterCo following completion of construction, subject to due diligence and the necessary regulatory approvals.
The first phase, with an annual capacity of 4 GL, is expected to be completed this year, with first water scheduled for early 2027. Once operational, it is expected to significantly reduce groundwater extraction from the Bungaroo aquifer, which holds cultural significance for the Robe River Kuruma People.
Construction has also begun on the second phase, which will add another 4 GL of annual capacity and is expected to be commissioned during 2027. This phase is intended to ease pressure on the Millstream aquifer, a culturally significant water source for the Yindjibarndi People.
After the facility is completed, Rio Tinto will continue purchasing 4 GL of treated water annually to offset its groundwater extraction from the Bungaroo aquifer. The company stated that retaining ownership and operation of the infrastructure is no longer necessary, emphasizing that the planned sale forms part of its strategy to optimize capital allocation and create long-term shareholder value.
Western Australian Premier Roger Cook said the Dampier Seawater Desalination Plant would not only help meet the water needs of Karratha's growing population but also support regional economic growth while contributing to the protection of culturally significant water resources across the Pilbara.
Rio Tinto Iron Ore Chief Executive Officer Matthew Holcz described the project as a critical long-term water security investment for Western Pilbara, stating that the partnership model with Yindjibarndi WaterCo would both secure the region's future water supply and generate lasting economic value for the Yindjibarndi People.
Yindjibarndi WaterCo Chairman Michael Woodley said the agreement represents a significant milestone in the Yindjibarndi People's long-standing efforts to protect the water resources on their traditional lands, adding that the project will generate long-term revenue while creating employment opportunities, supporting training, and strengthening operational capabilities.
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