PERTH (miningweekly.com) – Mining major Rio Tinto and its joint venture partner China Baowu Steel Group Co have spent some A$1-billion on contract awards to Western Australian businesses for the construction of the Western Range iron-ore mine, in the Pilbara.
Construction at Western Range, which will help sustain production from Rio’s existing Paraburdoo mining hub, commenced in the first quarter of this year and is expected to support approximately 1 600 jobs.
Production from the mine is expected to start in 2025 with yearly capacity of 25-million tonnes of iron-ore. The project includes construction of a primary crusher and an 18-km conveyor system linking it to the existing Paraburdoo processing plant.
Contracts awarded at the project to date include A$330-million 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.
CIMIC Group’s CPB Contractors has been awarded a contract valued at A$250-million to deliver the main infrastructure bulk earthworks, while Primero Group has been awarded a contract valued at A$54-million for the design, supply, construction and commissioning of the non-process infrastructure facilities on site.
MACA has been awarded a contract of A$60-million to construct a camp pad and access road as well as crushing and screening work, while several Pilbara Aboriginal businesses have been awarded contracts totalling A$39-million.
Rio said in a statement that Western Range aligns with the company’s local procurement strategy which aims to increase opportunities for Pilbara, West Australian and Australian businesses to be a part of the company’s supply chain. Last year, Rio Tinto increased its spend with more than 2 400 suppliers in Western Australia to A$8.6-billion.
Of this spend, A$618-million was spent with Pilbara-based businesses and a record A$504-million was spent with Indigenous businesses in Western Australia. This included A$439-million spent with Traditional Owner businesses – an increase of 45% on 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,” Rio Tinto iron-ore CEO Simon Trott said.
“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 commitment to study opportunities for the production of low-carbon iron in Western Australia.”