Western Range mine spends big with local businesses
A total of $1b in contracts has been awarded to WA businesses as construction progresses at the Western Range mine in Pilbara, WA.
The mine, a joint venture between the world’s largest iron ore producer Rio Tinto (ASX: RIO) (54%) and the world’s biggest steelmaker China Baowu Steel Group Co. Ltd (46%), is targeting the start of production in 2025 of 25mtpa of iron ore.
Last year, Rio Tinto spent $8.6b across more than 2400 suppliers, with $618m spent with Pilbara-based businesses and a record $504m spent with indigenous WA businesses.
Rio Tinto iron ore chief executive Simon Trott says Rio Tinto spends billions of dollars with local suppliers across WA and the Pilbara every year, helping to support thriving communities across the State and providing local jobs for local people.
“The spending of $1b with WA businesses at Western Range marks a considerable milestone for both the project and those local businesses we are partnering with,” he 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.”
China Baowu says the company is “very pleased to see the Western Range project is progressing smoothly, with huge benefits brought to business and local communities in WA.”
“Baowu is committed to becoming a world-class international company,” the company added.
“We will promote overseas projects following ESG standards, aiming to contribute to the localisation of the project and community development.”
WA Premier Roger Cook says significant projects like Western Range reinforces the State as an attractive and secure destination for business and investment.
“I want to commend Rio Tinto and Baowu on this latest project milestone and acknowledge their efforts in investing in WA to ensure WA businesses and workers benefit most,” he said.
“It goes to the heart of [the WA] Government’s WA Jobs Plan, which is about WA jobs first and its projects like the Western Range that will provide a long pipeline of work for Western Australians into the future.”
Contracts awarded to-date include:
Civmec: awarded a contract valued at more than $330m 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: awarded a contract valued at approximately $250m to deliver the main infrastructure bulk earthworks.
Primero Group: awarded a contracted valued at approximately $54m for the design, supply, construction and commissioning of the non-process infrastructure facilities on site.
MACA: awarded a contract valued at approximately $60m to construct a camp pad and access road as well as crushing and screening work.
Pilbara Aboriginal Businesses: contracts totalling $39m.
Construction at Western Range commenced in the first quarter of 2023 and is expected to support approximately 1,600 jobs whilst sustaining production from Rio Tinto’s existing Paraburdoo mining hub,
The project includes construction of a primary crusher and an 18km conveyor system linking it to the existing Paraburdoo processing plant.
Earlier this month, China Baowu and Rio Tinto signed a Memorandum of Understanding (MoU) to explore news ways of decarbonising the steel value chain.
