Rio Tinto Spends Record AU$10.3 Billion with Western Australian Suppliers in 2024

Major miner Rio Tinto (ASX:RIO,NYSE:RIO,LSE:RIO) reported total spending of AU$10.3 billion with Western Australian suppliers in 2024, marking a new record for the company.

The commodities giant boosted its spending with suppliers in the state by AU$1.5 billion for the year in a bid to support local businesses continuously and grow its Pilbara mining portfolio.

Since 2018, the company has worked with around 2,400 suppliers in Western Australia annually. Its annual spend with suppliers has more than doubled over the past six years.

“Rio Tinto has been in Western Australia for almost 60 years, and we remain committed to sharing our success with the communities where we operate,” said Rio Tinto Iron Ore Chief Executive Simon Trott.

He added that partnering with local businesses allows the company to help create jobs and strengthen regional communities, all while providing benefits and sponsorship to small to large business owners.

Rio Tinto is also prioritising Indigenous-owned businesses in the state. Its spending with Indigenous-owned businesses in 2024 reached AU$769 million, 30 percent more than the recorded amount in 2023. Pilbara businesses received AU$969 million from Rio Tinto, with 60 percent of this going to Indigenous-owned businesses in the region.

Rio Tinto has attributed the spending increase to its project developments in the state, including heavy mining machinery and earthworks for its US$2 billion Western Range mine.

Located in Pilbara 10 kilometres southeast of Paraburdoo, the Western Range mine is expected to produce 25 million tonnes of iron ore annually. It is scheduled to open and complete its first production this year.

The company received approval for its US$1.8 billion Brockman Syncline 1 project this month, allowing it to sustain production and support for Western Australian businesses moving forward.

Rio Tinto owns a portfolio of large iron ore assets in the Pilbara. The company had produced 327.9 million tonnes of iron ore at these operations as of 2023, employing around 16,000 people across its projects.

A total of 17 mines, four independent port terminals, a rail network spanning nearly 2,000 kilometres and related infrastructure are held by Rio Tinto in the region. These assets help it maintain its reputation in the global iron ore industry.

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Securities Disclosure: I, Gabrielle de la Cruz, hold no direct investment interest in any company mentioned in this article.