Rio Tinto’s first locally made iron ore rail car has been built in Western Australia, marking a key milestone in the major’s ramp-up of domestic manufacturing at its iron ore operations.
The company is investing up to $150 million to purchase 100 locally built rail cars, as well as continued investment in bearing refurbishment for its Pilbara operations.
“We want to support local business and create new economic opportunities in the communities where we operate,” Rio Tinto Iron Ore chief executive Simon Trott said.
The first 40 rail cars will be built at Gemco’s Forrestfield facility in Perth, as it sets up a manufacturing workshop in Karratha, where 60 more rail cars will be made, starting later this year.
The new Karratha facility will create a manufacturing and bearing maintenance industry in the Pilbara, supporting up to 25 jobs in the region.
“By partnering with Gemco Rail and CRRC Qiqihar Rolling Stock, we are establishing new manufacturing capability in the Pilbara that will create a reliable and sustainable supply chain to support our operations and the regional economy for years to come,” Trott said.
Gemco Rail is using advanced engineering and manufacturing expertise, alongside robotic welding technologies, to create rail cars that will each carry up to 118 tonnes of iron ore from Rio Tinto’s 17 mines in the Pilbara to its ports.
The new Karratha workshop will also support the supply of new and reconditioned rail car bearings from the Pilbara and reduce the need to transport iron ore rail cars and bearings from Perth.
The WA Government has contributed $6.9 million to Gemco under the Local Manufacturing Investment Fund (LMIF) to upgrade Forrestfield and establish a new facility in Karratha.
WA Premier Roger Cook said the state Government will continue to support manufacturing businesses across WA, with the aim of growing job opportunities and investing in the future of the resources industry.
“Our vision for Western Australia’s future is clear: we want to continue working closely with the resources industry to diversify our nation-leading economy and make more things here,” Cook said.
“These railcars are an excellent example of that vision already in action. I want to congratulate Rio Tinto, Gemco Rail and CRRC Qiqihar Rolling Stock for building locally and supporting Western Australian jobs and industry.”
