IGO ‘leads race’ for Rio’s Winu copper-gold deposit

More chatter is emerging in the market surrounding Rio Tinto’s Winu Project, and there are suggestions that IGO is shaping up as the frontrunner – staring down BHP spin-off South32, which is also thought to be taking a look.

DataRoom reported on September 16 that IGO was interested in the asset.

The latest informal market discussion indicates that IGO is the best placed to pick up the Winu Project, despite suggestions that South32 is at least taking a look under the bonnet.

The Winu Project is a copper-gold deposit in the northern Pilbara region, 320km east of Port Hedland.

The greenfield mining project is considered sub-scale for Rio, which has been moving to sell the asset.

Rio has lodged an application with the WA government to develop the project within both the Nyangumarta people’s and the Martu people’s Native Title Determination Areas.

The proposal is to clear up to 4868ha of native vegetation within a proposed 37,344ha development envelope for an open pit that extends below the water table, ore processing facilities, ore and topsoil stockpiles, waste rock landforms, a tailings storage facility, bore field(s) and associated infrastructure.

It follows federal Environment Minister Tanya Plibersek’s controversial decision to declare an Indigenous protection order over Regis Resources’ McPhillamys gold mine development near Blayney, NSW, claiming the move would threaten all future developments including renewable energy, farming and housing.

IGO has been turning its attention back to mergers and acquisitions after it bought Western Areas for $1.25bn, then wrote down the value of the nickel miner by $880m to $980m on the back of a collapse in the price of the commodity.

The deal included a 20 per cent stake in fellow WA nickel miner Panoramic Resources, worth about $102m at the time, but Panoramic has since gone into administration.

It refrained from deal making for some time after that.

Meanwhile, Bowen Coking Coal confirmed on Monday it is making efforts to raise $70m from investors at 0.9c a share after it was flagged by this column.