Introduction to Rio Tinto’s Spending
Rio Tinto, a major mining company, has reported a record-breaking total spending of AU$10.3 billion with Western Australian suppliers in 2024. This marks a significant increase of AU$1.5 billion from the previous year, demonstrating the company’s commitment to supporting local businesses and growing its Pilbara mining portfolio.
Supporting Local Businesses
Since 2018, Rio Tinto has worked with around 2,400 suppliers in Western Australia annually. The company’s annual spend with suppliers has more than doubled over the past six years, showcasing its dedication to sharing its success with the communities where it operates. According to Rio Tinto Iron Ore Chief Executive Simon Trott, partnering with local businesses allows the company to help create jobs and strengthen regional communities.
Prioritizing Indigenous-Owned Businesses
Rio Tinto is also prioritizing Indigenous-owned businesses in the state. In 2024, the company’s spending with Indigenous-owned businesses reached AU$769 million, a 30% increase from the previous year. Pilbara businesses received AU$969 million from Rio Tinto, with 60% of this amount going to Indigenous-owned businesses in the region. This initiative demonstrates the company’s commitment to supporting diverse and inclusive economic growth.
Project Developments and Spending Increase
The increase in spending can be attributed to Rio Tinto’s project developments in the state, including heavy mining machinery and earthworks for its US$2 billion Western Range mine. Located in Pilbara, the Western Range mine is expected to produce 25 million tonnes of iron ore annually and is scheduled to open this year. The company has also received approval for its US$1.8 billion Brockman Syncline 1 project, which will sustain production and support for Western Australian businesses moving forward.
Rio Tinto’s Operations in the Pilbara
Rio Tinto owns a portfolio of large iron ore assets in the Pilbara, including 17 mines, four independent port terminals, and a rail network spanning nearly 2,000 kilometers. The company produced 327.9 million tonnes of iron ore at these operations as of 2023 and employs around 16,000 people across its projects. These assets help Rio Tinto maintain its reputation in the global iron ore industry.
Conclusion
In conclusion, Rio Tinto’s record-breaking spending with Western Australian suppliers demonstrates the company’s commitment to supporting local businesses and growing its Pilbara mining portfolio. By prioritizing Indigenous-owned businesses and investing in project developments, Rio Tinto is contributing to the economic growth and diversification of the region. As the company continues to expand its operations in the Pilbara, it is likely to remain a major player in the global iron ore industry.
