Mining giant Rio Tinto have teamed up with Gemco Rail to bring local iron ore rail car manufacturing and bearing maintenance to the Pilbara of Western Australia.
The partnership will enable Gemco Rail to expand its existing operations to establish the first ever rail ore car manufacturing and maintenance facility in the region, creating new jobs, increasing spend with local and Indigenous businesses and supporting local economic growth.
The initiative was developed by Rio Tinto and Gemco Rail along with Qiqihar Railway Rolling Stock (QRRS), and supported by the Western Australian State Government.
Rio Tinto expects to invest about $150 million to purchase 100 locally built ore rail cars over six years as well as continued investment in bearing refurbishment over 10 years, to support the company’s Pilbara operations.
The first 40 ore cars will be built at Gemco Rail’s existing facility in the Perth suburb of Forrestfield, while the company establishes an additional facility in Karratha.
Once this new facility is operational, Gemco Rail is expected to build an average of 10 ore cars per year, replacing ore cars as they are retired from Rio Tinto’s existing fleet. The new Karratha facility will also support the supply of new and reconditioned ore car bearings from the Pilbara in an industry-first.
The first WA-built rail car is expected to be delivered in 2024 and the Karratha-based facility is expected to be established by the end of 2024, subject to the availability of a suitable property.
The new site 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 carbon dioxide each year.
Rio Tinto Iron Ore chief executive Simon Trott said the miner aimed to create enduring partnerships that generated positive impacts in the regions where it operated.
“We’ve taken our original scope to build iron ore cars in WA 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,” he said.