CME welcomes boost to local content in resources industry

The Chamber of Minerals and Energy of Western Australia (CME) has welcomed a new procurement programme by Rio Tinto which will see local businesses from the Pilbara and across the State benefit from increased contract opportunities.

The programme will make it easier for WA businesses to compete for contracts with Rio Tinto Iron Ore, particularly Aboriginal businesses in the Pilbara, and will further increase the company’s current local content level of 77 per cent.

CME Chief Executive Officer Reg Howard-Smith said resources companies were continually looking at ways to boost local content on projects, and praised Rio Tinto for increasing job opportunities for West Australians.

“Efforts by companies like Rio Tinto to boost local content on projects significantly benefits the Western Australian community,” Mr Howard-Smith said.

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

“A sample of 46 resources companies in 2015-16 showed that the industry’s spending contributed $32 billion to the Western Australian 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 7,000 local businesses.

“Today’s announcement by Rio Tinto is just one example of how the industry is trying to improve the lives of West Australians by increasing job opportunities for local businesses and workers.”

Rio Tinto’s new programme will include a dedicated team to better link the company’s procurement opportunities and spending with WA suppliers, as well as a series of local procurement workshops in the Pilbara and Perth and a web portal to enable WA businesses to lodge their interest in future work.

For more information of how the WA resources industry is contributing to local communities, visit www.cmewa.com/economic-contribution 

Further Information

contact: Rosalie Cobai
phone: 0437 156 127