Affinity and Yindjibarndi to buy $1.1B plant from Rio Tinto

·       Affinity Funds Management and Yindjibarndi Water signed an agreement to acquire the $1.1 billion Dampier Seawater Desalination Plant from Rio Tinto and the Western Australian government.

·       The acquisition price is understood to sit near the facility's $1.1 billion construction cost, with funding supported by a planned capital raise by year-end.

·       The transaction aims to secure a climate-independent water source for the West Pilbara region while backing Yindjibarndi economic self-determination.

Affinity Funds Management and Yindjibarndi Water signed an agreement to purchase the $1.1 billion Dampier Seawater Desalination Plant from Rio Tinto (ASX:RIO) and the Western Australian Government.

The transaction represents the first major acquisition for Affinity Funds Management following its establishment earlier this year.

"This is the only new, industrial scale and climate independent water source capable of improving water security in the West Pilbara, and revenue will be underpinned by long-term agreements with high quality counterparties," said Affinity Funds Management Co-Founder Ben Palmer.

Under the terms of the deal, the joint venture will supply drinking water to Rio Tinto and the Water Corporation once the facility produces over 8 gigalitres annually starting early next year.

Following the announcement, the Rio Tinto share price was unchanged at $163.58.

Rio Tinto initially approved $606 million in March to double its capacity.

The agreement follows a separate deal in May where the Yindjibarndi Energy Corporation agreed to supply power to Rio Tinto from a 75-megawatt solar farm over 30 years.