Rio Tinto awards $1bn worth of work contracts to WA businesses

With construction commencing on the Western Range iron ore project in the Pilbara, joint venture partners Rio Tinto and China Baowu Steel Group Co Ltd have awarded a total of $1 billion in work contracts to Western Australian businesses. 

Western Australian Premier Roger Cook has welcomed this news, stating: “I commend Rio Tinto and Baowu Steel on this latest project milestone which has resulted in numerous Western Australian businesses benefiting from construction contracts worth millions of dollars. 

“The boost to local content goes to the heart of our WA Jobs Plan which is about preferencing WA workers and local businesses. 

“It’s through significant projects like these that we can build a long pipeline of work for Western Australians into the future.” 

The total $1 billion in contract awards include: 

• More than $330 million awarded to Civmec for the construction of a new Run of Mine (ROM) pad, primary crushing facility, overland conveying circuit, and modifications to the Coarse Ore Stockpile and downstream conveying system 
• About $250 million awarded to CIMIC Group’s CPB Contractors for the delivery of the main infrastructure bulk earthworks 
• Approximately $54 million awarded to Primero Group for the design, supply, construction and commissioning of the Non-Process Infrastructure facilities on site 
• Approximately $60 million awarded to MACA for the construction of a camp pad and access road as well as crushing and screening work 
• A total of $39 million awarded to Pilbara Aboriginal Businesses 

“This long-term investment by Rio Tinto and Baowu Steel highlights the confidence the joint venture partners have in WA as a safe, secure and stable mining jurisdiction,” Mines and Petroleum Minister Bill Johnston said. 

“It’s vital that businesses in the region keep investing in growing opportunities to benefit WA workers and the local community,” Pilbara MLA Kevin Michel said. 

The Western Range iron ore project will include the construction of a primary crusher and an 18-kilometre conveyor system that will link to the existing Paraburdoo processing plant. 

The project is anticipated to support up to 1,600 jobs during construction and a further 800 jobs once operational. 

Western Range is due to begin production in 2025 with a projected capacity of 25 million tonnes per annum (Mtpa) of iron ore. 

“We are very pleased to see the Western Range project is progressing smoothly, with huge benefits brought to business and local communities in Western Australia. Baowu is committed to becoming a world-class international company. We will promote overseas projects following ESG standards, aiming to contribute to the localisation of the project and community development,” China Baowu said in a statement. 

The Western Range iron ore project aligns with Rio Tinto’s local procurement strategy that aims to increase opportunities for businesses across the Pilbara, the State and the nation to become a part of the company’s supply chain. 

In 2022, Rio Tinto increased its spend to over 2,400 suppliers in Western Australia to $8.6 billion. This includes $618 million towards Pilbara-based businesses as well as $504 million towards Indigenous businesses in Western Australia. This also includes $439 million spent with Traditional Owner businesses, which is an increase of 45 per cent from the previous year. 

“Rio Tinto spends billions of dollars with local suppliers across Western Australia and the Pilbara every year, helping support thriving communities across the State by providing local jobs for local people. 

“The spending of A$1 billion with Western Australian businesses at Western Range marks a considerable milestone for both the project and those local businesses we are partnering with. 

“The connection between Rio Tinto and China Baowu in the Pilbara extends more than 40 years and we are pleased to be further deepening our relationship through our joint venture commitment to study opportunities for the production of low-carbon iron in Western Australia,” Rio Tinto Iron Ore Chief Executive Simon Trott said. 

Source: Government of Western Australia – Media Statements; Rio Tinto; Australian Mining