Mar 21, 2017

Queensland suppliers take $900m in Amrun project work

Queensland suppliers take $900m in Amrun project work

Rio Tinto has awarded more than $900 million in contracts to Queensland suppliers as the development of the Amrun bauxite project on Cape York Peninsula continues.

The company said the Queensland spend made up almost two thirds of the $1.38 billion in contracts awarded to Australian suppliers for the project to date, with 509 Queensland businesses engaged directly and indirectly to supply goods and services to the site.

Businesses bidding for contracts over $1 million must complete a Local and Indigenous Participation Plan as part of the procurement process.

Once awarded, contractors must report on how they are performing against their commitment.

More than 1600 people have been engaged by contractors to work on the project so far, with 77 per cent of that number coming from Queensland.

Rio Tinto chief executive Jean-Sébastien Jacques said the company was proud of the contribution this tier one asset would make in supporting of Queensland communities.

“Sustainability is crucial to this project and strict guidelines are in place for all suppliers,” he said.

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

“Rio Tinto is a substantial contributor to the Queensland economy paying $1.3 billion in state taxes and royalties over the past five years.”

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

Amrun will replace the depleting East Weipa bauxite mine and will increase overall bauxite exports from Cape York by around 10 million tonnes a year.

Production and shipping are expected to commence in the first half of 2019, ramping up to full production by the end of the year.

Information on new tenders is available at

A work package is open for the supply of rip rap (rock) for the construction of Arraw Dam.