Local boost from Rio Tinto, Fortescue

Rio Tinto and Fortescue Metals Group has awarded more than $1.8 billion of work to WA companies in the September quarter, the state government has revealed.

Under State Agreement Acts, Fortescue reported a 96 per cent local content on construction and services relating to its Chichester expansion, while Rio Tinto recorded a local content of 85 per cent for a range of Pilbara iron ore projects.

Commerce Minister Simon O’Brien said this was a great result for local suppliers, particularly in a period of volatile iron ore spot prices.

“This result demonstrates local supply continues to be an attractive option for the mining industry, despite strong competitive pressures from overseas,” he said.

“It also illustrates the continuing role the iron ore sector is playing in stimulating growth and employment across WA’s economy.  As part of the State Government’s approach to local industry participation, I am encouraging iron ore project proponents to work closely with the Government and suppliers to identify areas of future opportunity.

“Positive results will be maintained if all parties continue with this dialogue.”