Rio Tinto’s iron ore rail cars to be built in WA to boost local jobs

Rhea-AI Summary

Rio Tinto is enhancing local manufacturing in Western Australia by committing to build iron ore rail cars using local suppliers. A tender for the initial purchase of 50 ore rail cars will be released soon, followed by a commitment to buy 10 cars annually for five years. This initiative supports the WA Government’s efforts to bolster the regional economy through local supply chains. In 2020, Rio Tinto spent AUD$7.5 billion with over 2,000 local businesses in WA, further solidifying its long-standing presence and commitment to the region.

Positive

• Rio Tinto will purchase 50 ore rail cars initially, followed by 10 cars annually for five years, boosting local manufacturing.
• The initiative supports WA's economic recovery and local job creation.
• In 2020, Rio Tinto invested AUD$7.5 billion in local businesses in WA.
• The company is part of the WA Government's iron ore rail car action group, aiming to develop local manufacturing capabilities.

Negative

• None.

MELBOURNE--(BUSINESS WIRE)-- Rio Tinto is supporting iron ore rail car manufacturing in Western Australia with a commitment to use local suppliers to build 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 Rio Tinto and be part of our supply chain.

Western Australia has been an important part of Rio Tinto’s history for more than 50 years as the company built a world-class iron ore business. In 2020, the company spent AUD$7.5 billion with more than 2,000 local businesses based in Western Australia.

Rio Tinto is also 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.

Rio Tinto’s commitment to bring ore rail car manufacturing back to WA supports the action group’s vision to develop WA’s ore rail car manufacturing capability and support the State’s economic recovery.

Rio Tinto Iron Ore chief executive Simon Trott said: “Building Rio Tinto’s ore rail cars here in WA will support local manufacturing and create jobs for West Australians.

“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.

“I look forward to partnering with local businesses to support and grow the local manufacturing industry in WA.

“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.”

Premier Mark McGowan said: “This is a pleasing outcome and I commend Rio Tinto for taking the first step and committing to our local steel manufacturing industry which will support more jobs for Western Australians.

“Rio Tinto’s commitment is a positive result off the back of the State Government’s independent pre-feasibility study, which identified initiatives for the manufacture, refurbishment and maintenance of iron ore railcar wagons.

“This was about securing an ongoing pipeline of work for the long term manufacture of iron ore wagons and critical rail wagon parts, which will deliver jobs and economic benefit for the State into the future.

“Rio Tinto’s purchase of Western Australian made railcars 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.”

riotinto.com

View source version on businesswire.com: https://www.businesswire.com/news/home/20211002005001/en/

Please direct all enquiries to Media.enquiries@riotinto.com

Media Relations, Australia

Jonathan Rose

M +61 447 028 913

Matt Chambers

M +61 433 525 739

Jesse Riseborough

M +61 436 653 412

Jamie Macdonald

M +61 467 725 51

Rio Tinto plc

6 St James’s Square

London SW1Y 4AD

United Kingdom

T +44 20 7781 2000

Registered in England

No. 719885

Rio Tinto Limited

Level 7, 360 Collins Street

Melbourne 3000

Australia

T +61 3 9283 3333

Registered in Australia

ABN 96 004 458 404

Category: Pilbara

Source: Rio Tinto

FAQ

What commitment is Rio Tinto making in Western Australia?

Rio Tinto is committed to purchasing 50 iron ore rail cars initially, followed by 10 cars annually over the next five years, using local suppliers.

How much did Rio Tinto spend on local businesses in Western Australia in 2020?

In 2020, Rio Tinto spent AUD$7.5 billion with over 2,000 local businesses in Western Australia.

What is the purpose of the tender released by Rio Tinto?

The tender aims to support the local manufacturing of iron ore rail cars for Rio Tinto's Pilbara mining operations.

How does Rio Tinto's initiative support WA's economy?

The initiative will increase local job opportunities and support the economic recovery through local manufacturing.