Rio to boost local contracts
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.