The Western Range project operates under a partnership between mining giant Rio Tinto (54 per cent) and their long-standing customer of more than 40 years, steel pipe manufacturer Baowu Steel (46 per cent).
The businesses that received the contracts include:
- Civmec: awarded a contract valued at more than A$330 million 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 A$250 million to deliver the main infrastructure bulk earthworks.
- Primero Group: awarded a contracted valued at approximately A$54 million for the design, supply, construction and commissioning of the Non-Process Infrastructure facilities on site.
- MACA: awarded a contract valued at approximately A$60 million to construct a camp pad and access road as well as crushing and screening work.
- Pilbara Aboriginal Businesses: contracts totalling A$39 million.
WA premier Roger Cook welcomed the significant milestone and met with a senior delegation from Baowu Steel following the State Government’s recent mission to China to explore and grow trade and investment opportunities for WA.
Western Range will support 1,600 construction jobs and 800 operation jobs and will complement production from Rio Tinto’s existing Paraburdoo mining hub, which includes the construction of a primary crusher and an 18-kilometre conveyor system linking it to the existing Paraburdoo processing plant.
It is expected the mine will have an annual capacity of 25 million tonnes of iron ore and will commence in 2025.
The Western Range project milestone comes as the WA State Government this week released a new report highlighting the potential for WA to join the rapidly growing global green steelmaking value chain.
The report delivers on an important election commitment to green jobs and green steel manufacturing.
“The Pilbara continues to roar as the engine room of our country’s economy,” Cook said.
“It’s significant projects like the Western Range that reinforces Western Australia as an attractive and secure destination for business and investment.
“I commend Rio Tinto and Baowu Steel on this latest project milestone which has resulted in numerous Western Australian businesses benefiting from construction contracts worth millions of dollars.
“The boost to local content goes to the heart of our WA Jobs Plan which is about preferencing WA workers and local businesses.
“It’s through significant projects like these that we can build a long pipeline of work for Western Australians into the future.”
Rio Tinto Iron Ore chief executive Simon Trott said, “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.
“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.”
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