Investing in Pilbara water infrastructure

Insights

The Affinity Pilbara Water Fund is Affinity Funds Management's first investment offering, brought to market in collaboration with Yindjibarndi Water.
The $1.1 billion Dampier Seawater Desalination Plant will be the fund's cornerstone asset, supplying Rio Tinto and state-owned utility Water Corporation under long-term agreements.
The proposed transaction structure allows Yindjibarndi Water to own and operate the infrastructure and secure long-term economic returns for the Yindjibarndi people.

Perth-based specialist investment manager Affinity Funds Management (AFM), the specialist investment management arm of Affinity Capital Group, is bringing its first investment offering to market, the Affinity Pilbara Water Fund, in collaboration with Yindjibarndi Water, a water utility majority owned by the Yindjibarndi people.

AFM has partnered with Yindjibarndi Water to pursue the acquisition of the Dampier Seawater Desalination Plant (DSDP) from Rio Tinto and the Western Australian Government, in a transaction announced jointly by Premier Roger Cook and Rio Tinto Iron Ore CEO Matthew Holcz.

The DSDP, which has a construction budget of $1.1 billion, will be the cornerstone asset of the Affinity Pilbara Water Fund, which will also support the development of additional sources of water supply in the Pilbara.

Under the proposed transaction, AFM and Yindjibarndi Water will enter into long-term agreements to supply potable water from the DSDP to Rio Tinto and state-owned utility Water Corporation.

At full capacity, the DSDP will produce more than 8GL of potable water a year for the region. First water from the facility is expected in early 2027.

Importantly, the plant will significantly reduce abstraction from the Bungaroo and Millstream aquifers, Pilbara groundwater sources that hold cultural significance for the Robe River Kuruma and Yindjibarndi Peoples respectively.

The proposed transaction structure, meanwhile, allows for Yindjibarndi Water to develop the capability to own and operate desalination water infrastructure and secure long-term economic returns for the Yindjibarndi people.

AFM anticipates finalising the capital raising process to fund the acquisition of the DSDP in the December 2026 quarter, aligning with its vision to connect long-term capital with substantial and compelling Western Australian projects.

About Affinity Funds Management

Affinity Funds Management is the specialist investment management arm of Affinity Capital Group, with a focus on identifying Western Australian investment opportunities that will deliver attractive returns while also effecting positive change in line with its parent company’s stated goals. AFM derives its competitive advantage from deep local knowledge and global institutional experience, led by Chief Executive Ben Palmer, the former head of Western Australia’s ~$45 billion government employee super fund, GESB.

The Affinity Pilbara Water Fund represents a unique core infrastructure investment opportunity that we expect to generate strong, stable returns along with significant environmental benefits and cultural and economic outcomes for the Yindjibarndi people and the Pilbara region more broadly.

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.

Ben Palmer

Managing Director & Chief Executive Officer, Affinity Funds Management

AFM was formed with a focus on the defining themes that have the capacity to reshape WA’s economic future, and the DSDP is a perfect fit for our goals of regional development, sovereign infrastructure and Indigenous engagement.

Along with improving water security for businesses and residents of the Pilbara, there are enduring environmental, cultural and economic benefits that will flow from genuine Traditional Owner participation.

We are proud to be involved in this landmark transaction and congratulate Rio Tinto, the Western Australian Government and the Yindjibarndi for their vision in developing this significant asset to secure sustainable water for this critical region.

Adam Santa Maria

Executive Chairman, Affinity Funds Management

Related coverage

Negotiations progress for Yindjibarndi to acquire desalination plant

Government of Western Australia, 27 July 2026.

Rio Tinto and WA Government sign agreements with Yindjibarndi WaterCo for proposed sale of Dampier Seawater Desalination Plant

Rio Tinto via Businesswire, 27 July 2026.

Yindjibarndi, AFM eye $1.1b Pilbara desalination plant acquisition from Rio Tinto

Business News, Tom Zaunmayr, 27 July 2026.

Affinity Funds Management and Yindjibarndi co strike deal to buy $1.1b desal plant from Rio Tinto and WA Govt

The West Australian, 27 July 2026.

Speak directly with:

Simon Tan

Director

simon.tan@affinitycap.com.au

Demetrios Pynes

Executive Director

demetrios.pynes@affinitycap.com.au