Rio commences $50m upgrade

Rio Tinto has commenced a $50 million replacement of the iron ore stackers at its Paraburdoo mine, with local engineers and contractors set to benefit from the project.

Global technology company Tenova TAKRAF is leading the design and implementation phases of the stacker replacement and will manage all the lead engineering work from its Perth office.

Local company Paradigm Engineers has been contracted to provide electrical engineering design and control system programming services, as well as the supply of electrical equipment.

The design phase will create approximately 10 to 15 Perth-based roles while about 80 people will be required during implementation.

Rio Tinto Iron Ore chief executive Chris Salisbury said the project was an important part of the group’s sustaining capital programme for 2018.

“A further feature of our commitment to local jobs is our local procurement programme that we launched last year,” he said.

“The programme already has over 750 business registrations and more than 200 packages of work placed online.”

The project forms part of Rio Tinto’s broader sustaining capital programme estimated at $1 billion a year over the next three years.

The company is also investing in replacing depleting assets with an estimated $2.2 billion expected to be spent on replacement mines over the next three years.

Premier Mark McGowan today visited Paraburdoo to mark the start of the project.

"Construction and replacement of these stackers will allow Rio Tinto to work out of Paraburdoo for years to come, and importantly, create job opportunities for Western Australians,” he said.

"I congratulate Tenova TAKRAF for committing to sourcing materials from well-known, reputable suppliers with a preference for local content.

"The construction of the new stackers provides opportunities for local businesses which are well placed to win a majority of contracts generated by the works.

"Through our WA Jobs Bill and local procurement policy, my Government will continue to deliver on its number one priority; creating more local jobs for local workers."