Hon Simon O'Brien MLC

Hon Simon O'Brien MLC

Former Minister for Finance; Commerce; Small Business

    WA companies benefit from Pilbara iron ore projects

    18/01/2013 12:00 AM
    • FMG and Rio Tinto post high local content levels
    • Resource contracts worth $30.3b go to WA-based companies since July 2011

    Commerce Minister Simon O’Brien today welcomed Fortescue Metals Group (FMG) and

    Rio Tinto’s commitment to choosing local suppliers. Together, the companies iron ore projects awarded more than $1.8billion of work to Western Australian companies in the 2012 third quarter. 


    Under State Agreement acts, FMG reported 96 per cent local content on construction and services associated with its Chichester expansion.  Rio Tinto reported for a range of Pilbara iron ore projects with an aggregate local content of 85 per cent.  


    Local procurement covered project requirements including processing equipment; transport; infrastructure; storage facilities; engineering and design; and power generation. 


    Mr O’Brien said this was a great result for local suppliers, particularly in a period of volatile iron ore spot prices.


    “This result demonstrates local supply continues to be an attractive option for the mining industry, despite strong competitive pressures from overseas,” he said.


    “It also illustrates the continuing role the iron ore sector is playing in stimulating growth and employment across WA’s economy.  As part of the State Government’s approach to local industry participation, I am encouraging iron ore project proponents to work closely with the Government and suppliers to identify areas of future opportunity.


    “Positive results will be maintained if all parties continue with this dialogue.”


    The Government is supporting small to medium enterprises in the regions through the Industry Facilitation and Support Program.  The program aims to improve the innovation and productivity of WA suppliers and is guided by the input from major project proponents, including those in the iron ore sector.      


              Fact File

    • Liberal National Govt launched Framework for Local Industry Participation in July 2011
    • Since launch, about $30.3b of publicly announced resources-related contracts awarded to locally based business
    • Flow through of work to local businesses resulted in 75,000 jobs in WA
    • Liberal National Govt amended State Agreement acts covering Rio Tinto and BHP Billiton projects requiring them to outline how they will ensure fair and reasonable opportunity for local businesses
    • All new State Agreements to include this requirement
    Minister’s office - 6552 5800