Western Australian and Pilbara Aboriginal businesses will be given greater opportunity to bid for contracts with Rio Tinto’s world-leading iron ore business under a new local procurement programme announced today.
Rio Tinto Iron Ore chief executive Chris Salisbury said “Rio Tinto has spent almost $57 billion with Western Australian businesses over the past seven years, but we want to do more. Our new procurement programme will make it easier for WA businesses to compete for contracts with Rio Tinto Iron Ore.
“Rio Tinto’s Pilbara iron ore business has more than 1200 WA suppliers and we make a large contribution to the state economy through local procurement, taxes and royalties. Providing more opportunities for WA businesses to secure contracts will further boost the Pilbara and state economy.”
Under the new programme Rio Tinto will use a dedicated team to better link the company’s procurement opportunities and spending with WA suppliers.
This will include a series of local procurement workshops in the Pilbara and Perth, where information on the company’s forward procurement plans will be shared.
The new procurement team will also establish a web portal to provide improved visibility of upcoming contracts, allowing more WA businesses to lodge their interest in future work.
Chris Salisbury said “The new local procurement team will also partner with our existing suppliers to help identify local businesses that may be able to supply to them. We will also help smaller firms build the internal capacity to work with us by linking prospective suppliers with business development specialists.
“What we’re announcing today will grow over time, but I have a firm expectation that we will be able to assist more WA and Pilbara Aboriginal businesses obtain work with Rio Tinto straight away.
“Rio Tinto Iron Ore is one of the biggest businesses in WA and we value our place in the community. While we are proud that 77 per cent of our procurement is already with WA local suppliers, it’s time to see what else we can do.”
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