Rio Tinto Limited (ASX:RIO) will spend almost $300 million developing new water supplies in Western Australia’s Pilbara region, despite the miner’s legal right to draw tap water from local town’s dwindling supplies.
The deal will be announced today, according to the Australian Financial Review.
The miner will develop its own bore water supply. The move will free up water for growing towns and allow the government to scrap plans for a desalination plant.
In return, some of Rio’s secondary processing obligations with the state government will be amended.
Rio Tinto posted a record first half net profit of $7.5 billion.
