Rio to boost lo­cal con­tracts

Pilbara News - - News - Sophia Con­stan­tine

Lo­cal busi­nesses from across the Pil­bara and the State are set to ben­e­fit from in­creased con­tract op­por­tu­ni­ties from a new pro­cure­ment pro­gram by Rio Tinto.

The move will en­able WA busi­ness — par­tic­u­larly Abo­rig­i­nal-run — to have a higher chance of com­pet­ing for con­tracts with Rio Tinto, and is de­signed in­crease the com­pany’s cur­rent lo­cal con­tent level of 77 per cent.

The Cham­ber of Min­er­als and En­ergy of WA wel­comed the an­nounce­ment last week.

CME chief ex­ec­u­tive Reg HowardSmith said re­source com­pa­nies were con­stantly find­ing ways to boost lo­cal con­tent on projects.

“The re­sources in­dus­try’s spend­ing flows through to ev­ery part of the State by way of wages and salaries, busi­ness pur­chases and com­mu­nity con­tri­bu­tions,” he said.

“A sam­ple of 46 re­sources com­pa­nies in 2015-16 showed that the in­dus­try’s spend­ing con­trib­uted $32 bil­lion to the WA econ­omy, with $7.9 bil­lion of this be­ing paid in wages and salaries and $19.8 bil­lion paid in pur­chases of goods and ser­vices from just un­der 7000 lo­cal busi­nesses.”

The pro­gram in­cludes a ded­i­cated team to bet­ter link the com­pany’s pro­cure­ment op­por­tu­ni­ties and spend­ing with WA sup­pli­ers.

There will be a se­ries of lo­cal pro­cure­ment work­shops in the Pil­bara and Perth as well as a web por­tal to en­able WA busi­nesses to lodge their in­ter­est.

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