Metals and mining company Rio Tinto has announced the start of production of its first iron ore rail cars built in Western Australia (WA).
The company is investing A$150m ($94.8m) to procure 100 rail cars as part of its operations in the Pilbara region. This expansion is expected to create up to 25 jobs in Pilbara.
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The new cars are being produced collaboration with Gemco Rail and CRRC Qiqihar Rolling Stock, with support from the WA government to establish a local supply chain and support manufacturing in the region.
The first batch of 40 rail cars is being produced at Gemco’s facility in Forrestfield, Perth.
A new manufacturing workshop in Karratha is set to construct another 60 rail cars later this year.
Gemco has received a A$6.9m ($4.3m) grant from the WA Government’s Local Manufacturing Investment Fund (LMIF), aiding upgrades at the Forrestfield site and the establishment of the Karratha facility.
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By GlobalDataAn additional LMIF grant of A$340,929 ($215,512) has been invested in modernising equipment at Forrestfield, which has also won a contract to supply 40 rail wagons to BHP.
The LMIF has invested more than $13.5m ($8.5m) into local manufacturing projects.
Western Australian Premier Roger Cook said: “Our vision for Western Australia’s future is clear: we want to continue working closely with the resources industry to diversify our nation-leading economy and make more things here.
“These railcars are an excellent example of that vision already in action. I want to congratulate Rio Tinto, Gemco Rail and CRRC Qiqihar Rolling Stock for building locally and supporting Western Australian jobs and industry.”
Gemco Rail plans to employ advanced engineering and robotic welding technologies to produce rail cars capable of transporting up to 118 tonnes of iron ore from Rio Tinto’s 17 mines to its ports.
The Karratha workshop will also supply new and refurbished rail car bearings locally, reducing the need to transport these components from Perth.
The first locally manufactured rail cars are expected to enter service in the Pilbara in the first half of 2025.
Rio Tinto Iron Ore chief executive Simon Trott said: “By partnering with Gemco Rail and CRRC Qiqihar Rolling Stock, we are establishing new manufacturing capability in the Pilbara that will create a reliable and sustainable supply chain to support our operations and the regional economy for years to come.”
Rio Tinto operates about 13,500 iron ore rail cars and replaces around ten retired cars each year.
In 2022, Hitachi Rail commissioned an autonomous transport system for the Gudai-Darri iron ore mine, connecting it to Rio Tinto’s AutoHaul network via a 166km rail spur.
