Rio Tinto contributes $40m towards WA hospitals

The hospital projects are part of a procurement approach by the State Government to create a larger package of work that is more attractive to potential contractors.Rio Tinto (ASX: RIO) will contribute an additional $20m to the WA Government to redevelop the Paraburdoo hospital in the Pilbara region.

Rio Tinto’s contribution to the Paraburdoo Hospital will come from the company’s $250m commitment to the WA Government’s Resources Community Investment Initiative (RCII). The major redevelopment of the Paraburdoo Hospital is the first project through the RCII to receive funding.

The partnership will see the ageing Paraburdoo Hospital upgraded with contemporary purpose-built facilities to support medical services for the local community, including new rooms for the GP.

The project will be packaged with Rio Tinto’s previous $20m commitment to a new Tom Price hospital.

Rio Tinto rail, ports and core services managing director Richard Cohen says they have been part of the Pilbara region for almost 60 years and have a strong commitment to the communities of Tom Price and Paraburdoo.

“We understand health services are very important to both communities to ensure the ongoing health, safety and wellbeing of people and their families living in both towns,” he said.

“We have been working with the State Government to support the delivery of a new Tom Price Hospital and are proud to be able to make a significant contribution to the major redevelopment of Paraburdoo Hospital.

“We welcome the State Government’s new procurement approach and look forward to seeing these important projects take shape in the near future.”

WA Premier Roger Cook says this approach helps the State Government deliver on major health infrastructure projects.

“This innovative approach allows [the WA] Government to work collaboratively with a construction contractor to urgently deliver the works at Tom Price and Paraburdoo hospitals, with support from Rio Tinto,” he said.

“Staff at both Tom Price Hospital and Paraburdoo Hospital continue to deliver excellent care to the local community, and I thank them for all they do.”

The State Government anticipates a tender will be released for both projects next month, with a contract expected to be awarded in November 2024 and works for Tom Price to begin soon after.