QLD suppliers receive $900 million in contracts for Rio’s Amrun project

Image: Rio Tinto

More than $900 million worth of contracts have been awarded to Queensland suppliers during the continued development of Rio Tinto’s Amrun bauxite project in the Cape York Peninsula.

The state’s suppliers account for nearly two thirds of the $1.38 billion in contracts given to the project’s Australian suppliers to date, with 509 companies engaging director or to supply equipment or services.

The Amrun project includes a mine, processing plant and bauxite stockpiles, warehouses, a power station and new barge, ferry and ship loading facilities.

The companies vying for contracts worth more than $1 million must also complete a local and indigenous participation plan and once awarded, are to report on how their contractors are performing.

Queensland Premier Annastacia Palaszczuk said Rio’s investment in local and regional suppliers enhanced the state’s economy.

“The Amrun project will ensure Queensland businesses and their employees will continue to reap the benefits of many development opportunities for years to come,” she said.

“It is a best practice example of encouraging local and indigenous participation with substantial employment targets already agreed with many key suppliers.”

More than 1600 have been contracted for the project so far, with 77 per cent of those from Queensland.

Rio Tinto CEO Jean-Sébastien Jacques said, “We are proud of the contribution this tier one asset will make in supporting Queensland communities.”

He added that the company has strict guidelines for the suppliers they award contracts to.

“They must demonstrate they are commercially competitive, technically competent and most importantly, align with the safety standards of our group.”

Production and shipping at the Amrun project is slated for the first half of 2019.

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