PERTH, Australia, March 5, 2026, 16:10 (AWST)
- Rio Tinto is teaming up with Western Australia in a 50:50 joint venture, aiming to finish both phases of the Dampier Seawater Desalination Plant.
- The expanded plant will pump out 8 gigalitres—8 billion litres—of water annually. Stage 1 is expected to begin supplying water sometime later in 2026.
- The state government has pledged A$606 million for the project, which officials say will reduce groundwater pumping in major borefields.
Rio Tinto (RIO.L, RIO.AX) has signed on for a 50:50 joint venture with the Western Australian government, committing A$1.1 billion to build a seawater desalination plant near Dampier. The project targets increased water supply for Pilbara towns and industry while cutting back on groundwater reliance. “Water is a scarce resource, especially in the Pilbara,” Rio Tinto iron ore chief executive Matthew Holcz said. Rio Tinto
The deal holds weight: water is tightening in a region home to major Australian mines and a growing population. Western Australia’s government has warned about shrinking rainfall and increasing strain on local supplies, emphasizing the importance of safeguarding culturally significant sites linked to groundwater.
The plant, once it hits full stride, should supply 8 gigalitres—roughly 8 billion litres—of desalinated water each year into the West Pilbara Water Supply Scheme. That network covers Karratha, Wickham, Dampier, Roebourne, and Point Samson, plus industrial zones like Cape Lambert and the Burrup Peninsula. Right now, Stage 1 is being built and slated to bring 4 gigalitres online annually before year’s end. Stage 2 is set to tack on another 4 gigalitres, with water expected to flow in 2027.
Water Corporation, which runs the regional supply scheme, said the state plans to put A$606 million into doubling the plant’s capacity. The upgrade is set to deliver drinking water to over 10,000 homes. Local lawmaker Kevin Michel called a stable water supply for those homes “vital for our communities.” watercorporation.com.au
The joint venture comes after the 2025 memorandum of understanding between Rio Tinto and the state government, focused on water security in the Pilbara. Back then, officials said the project would cut down on groundwater use and safeguard both environmental and culturally significant sites.
Rio Tinto and the state have put forward the expanded plant as a fix for pressures on groundwater, including the Bungaroo and Millstream aquifers. These underground water sources, accessed via borefields, have already sparked conflict with Traditional Owner groups.
The Pilbara isn’t just Rio’s turf—BHP and Fortescue Metals Group also dig for iron ore here. Water’s turned into a flashpoint as mining sites, shipping ports, and local towns all vie for limited supply, with the region growing hotter and drier.
Rio Tinto’s U.S. shares ended Wednesday at $96.25, about 1% higher than the previous session, Yahoo Finance data show.
In a separate move, the London Stock Exchange posted a notice indicating Rio Tinto plc has sought admission for 54,705 ordinary shares tied to its Global Employee Share Plan, with admission slated for March 9.
The water plan’s fate now rests on meeting construction and commissioning deadlines in a far-flung area. Stage 1, set to bring water onstream before year-end, comes first; Stage 2 isn’t slated to deliver until 2027. If the schedule slips, the region could be left relying on borefields for longer—precisely what the project aims to avoid.
Rio Tinto posted full-year earnings in February that fell short of forecasts, with weaker iron ore prices dragging down profits. Copper, on the other hand, showed notable gains. The company declared a final dividend of 254 cents per share.
