Perth-based Gemco Rail will build 100 iron ore railcar wagons for mining giant Rio Tinto, supported by government investment of $6.9 million through the Local Manufacturing Investment Fund (LMIF).
The LMIF funding will be used by Gemco to upgrade its Forrestfield facility and establish a new facility in Karratha.
The $15 million LMIF is part of an election commitment to support local companies to enhance their competitiveness and provide an effective service to this important market sector.
The partnership with Rio Tinto will enable Gemco Rail to expand its existing operations to establish the first-ever rail ore car manufacturing and maintenance facility in the Pilbara, creating new jobs, increasing spend with local and Indigenous businesses and supporting local economic growth.
Rio Tinto expects to invest approximately A$150 million to purchase 100 locally built ore rail cars over six years as well as continued investment in bearing refurbishment over ten years, to support the company’s Pilbara operations.
The first locally-built railcar is expected to be delivered in mid-2024, while the Karratha-based facility is expected to be established by the end of 2024.
WA premier Roger Cook said, “My Government is absolutely committed to rebuilding our local manufacturing capability, and we’re getting on with the job of delivering on our commitment.
“Not only will the agreement create jobs and diversify the economy, it will help revitalise and future-proof local manufacturing in WA, including in the Pilbara.
“It will also reduce WA’s reliance on overseas suppliers and helps our State become more self-sufficient.
“It’s a win for jobs, a win for the economy and another step towards a stronger manufacturing sector in WA.”
The new Karratha facility will reduce the need to transport iron ore cars and bearings between the Pilbara and Perth, removing an estimated 150 truck journeys from WA roads and 300 tonnes of CO2 each year.
Rio Tinto iron ore chief executive Simon Trott said, “We aim to create enduring partnerships that generate positive impacts in the regions where we operate and are proud to be leading the way in bringing iron ore car manufacturing and maintenance to the Pilbara.
“We’ve taken our original scope to build iron ore cars in Western Australia and enhanced it to see the construction of ore cars in the same region as our operations. This will bring a new industry to the Pilbara, creating jobs and providing more opportunities for local and Indigenous businesses.”