The WA Government has announced it is progressing work with Rio Tinto and Yindjibarndi WaterCo to potentially acquire the Dampier Seawater Desalination Plant (DSDP).
To be delivered through a $1.1 billion investment by the Government and Rio Tinto, the DSDP is set to help provide water security and support the diversification of Karratha’s economy, said Premier, Roger Cook.
“This critical piece of infrastructure will do more than just support Karratha’s growing population,” said Mr Cook.
“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.
“We are already working with Yindjibarndi Aboriginal Corporation to improve the Millstream aquifer’s sustainability, with the potential for Yindjibarndi WaterCo to acquire the Dampier desalination plant to further empower Traditional Owners while protecting culturally significant water sources in the Pilbara.”
Pursuant to separate non-binding agreements signed with Yindjibarndi WaterCo – majority owned by the Yindjibarndi people – Rio Tinto and Water Corporation’s interests will be acquired in the DSDP, subject to further due diligence and successful capital raising from debt and equity sources.
Under the pathway, Water Corporation would enter a long-term agreement with Yindjibarndi WaterCo for the supply of four billion litres of water each year, delivering reliable drinking water supply for 10,000 homes in Karratha, Wickham, Roebourne, and Point Samson.
Importantly, the DSDP will help protect and restore WA’s environment by reducing the drawdown of the Millstream and Bungaroo aquifers, while protecting environmentally and culturally significant water sources of Traditional Owner groups, including the Yindjibarndi people and Robe River Kuruma people, said Pilbara MLA, Kevin Michel.
“This project shows the Cook Labor Government’s commitment to creating jobs and strengthening the Pilbara economy in partnership with Traditional Owners and local industry,” said Mr Michel.
“By engaging with Yindjibarndi on the plant’s ownership, our government is demonstrating its commitment to empowering Traditional Owners and investing in infrastructure which will support the delivery of health care, housing, and jobs in regional communities throughout WA.”
The DSDP is also set to improve resilience to lower rainfall, which has reduced levels in Harding Dam in recent years.
The Government will work with Yindjibarndi WaterCo, Rio Tinto, and relevant Traditional Owner groups, with a view to reaching binding agreements in the second half of 2026, said Mines, Petroleum and Exploration Minister, Daniel Pastorelli.
“A strong resources sector depends on strong partnerships. This project has the potential to deliver lasting economic empowerment for the Yindjibarndi people while supporting the critical water infrastructure that underpins jobs and industry in the Pilbara for decades to come,” said Mr Pastorelli.
“The Cook Labor Government is committed to ensuring Western Australians benefit from our State’s resources, and that includes creating more opportunities for Traditional Owners to participate in and benefit from our strong economy.”
Rio Tinto Iron Ore chief executive, Matthew Holcz said Yindjibarndi WaterCo has developed a compelling proposal for the future of the Dampier Seawater Desalination Plant.
“By working in partnership with Yindjibarndi WaterCo and the Western Australian Government on this arrangement, this project has the potential to create a lasting economic asset for the Yindjibarndi people, while supporting the long-term water needs of the West Pilbara,” said Mr Holcz.
“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.
“This proposed transaction reflects our commitment to working with partners to deliver long-term value and our disciplined approach to capital allocation.”
Yindjibarndi WaterCo Chair, Michael Woodley said the agreement results from the Yindjibarndi people’s longstanding drive to protect water on Ngurra Country and build shared understanding and shared responsibility.
“We warmly acknowledge the Western Australian Government and Rio Tinto – our partners in this agreement – and our capability partners, The Right Water Company and Affinity Capital Group, for delivering this significant milestone,” said Mr Woodley.
“This is another step on the Yindjibarndi path to self-determination by delivering a secure, long-term economic return and, over time, enabling us to grow operational capability through employment, training, and contracting arrangements.”
