Rio Tinto has committed to using Western Australian suppliers to build iron ore rail cars for its Pilbara mining operations.
A tender will soon be released to the local market for an initial purchase of 50 ore rail cars, followed by an ongoing commitment of 10 ore cars a year for the next five years.
The tender will be released through the Rio Tinto Buy Local portal, a resource dedicated to making local suppliers aware of opportunities to partner with the company and join their supply chain.
Rio Tinto Iron Ore chief executive Simon Trott said building the rail cars will support local manufacturing and create jobs for West Australians.
“Ore cars are a critical part of our mining operations and building capacity to manufacture ore cars locally in WA will deliver significant benefits for Rio Tinto and the WA economy,” Mr Trott said.
“Rio Tinto is proud to lead the way in building iron ore rail cars in WA, in line with the vision of State Government’s iron ore rail car action group.”
Rio Tinto is part of the WA Government’s iron ore rail car action group, launched as part of the WA Recovery Plan to develop a competitive iron ore rail car manufacturing industry in Western Australia.
Premier Mark McGowan said Rio Tinto’s commitment is a positive result following the State Government’s independent pre-feasibility study which identified initiatives for the manufacture, refurbishment and maintenance of iron ore railcar wagons.
“Rio Tinto’s purchase of Western Australian made rail cars that will be used right here in our State is something I encourage other iron ore companies operating in WA to get on board with and increase local content and local jobs,” he said.