Rio Tinto awards $1 billion to WA businesses

Through the Western Range mine, owned by Rio Tinto and China Baowu Steel Group, Western Australian businesses have been awarded contracts which equal to $1 billion.

The contracts were given out as construction is progressing at the Western Range mine, which is in the Pilbara region of WA.

The Western Range mine is a joint venture (JV) where Rio Tinto owns 54 per cent and China Baowu owns the remaining 46 per cent, and its production is expected to commence in 2025 with an annual capacity of 25 million tonnes of iron ore.

Through the JV’s construction, Civmec has been awarded a $330 million contract for the construction of a new run-of-mine pad, primary crushing facility, overland conveying circuit, and modifications to the coarse ore stockpile and downstream conveying system.

CPB Contractors was granted a $250 million contract to deliver the main infrastructure bulk earthworks. Primero was awarded a $54 million contract for the design, supply, construction and commissioning of the non-process infrastructure facilities on site.

MACA was permitted a $60 million contract to construct a camp pad and access road as well as crushing and screening work. Additionally, Pilbara Aboriginal businesses were given contracts equalling to $39 million.

“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,” a China Baowu spokesperson said.

Rio Tinto iron ore chief executive Simon Trott said the major miner spends billions of dollars with local suppliers across WA every year, helping to support communities across the State by providing local jobs for local people.

“The spending of $1 billion with WA businesses at Western Range marks a considerable milestone for both the project and those local businesses we are partnering with,” Trott said.

“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 commitment to study opportunities for the production of low-carbon iron in WA.”