Rio Tinto development projects to create 1,000 jobs

Rio Tinto Iron Ore said in a statement that its development projects will lead to the creation of as many as 1,000 jobs. This comes as Western Australia’s new Premier Mark McGowan referred to the financial situation of the state as “the worst since the Great Depression.”

The company said its ongoing development projects, at the new Silvergrass mine and already existing West Angelas and Yandicoogina mines, will be forming as many as 1,000 constructions jobs. Silvergrass is Rio Tinto’s 16th Pilbara iron ore mine. Construction work at the mine has stepped up since the start of this year. It will be expected to create around 500 jobs during construction.

On the other hand, building of a new deposit at the West Angelas mine was almost completed. One hundred and twenty people have been employed in the project. The construction of new deposits at the Yandicoogina mine are expected to form 470 new jobs.

An investment of more than $180 million in construction contracts has been made at Silvergrass. This includes a contract worth $40 million to Decmil, in Western Australia, and another worth $120 million to RCR Resources, headquartered in Perth. Around 40 suppliers and contractors have been taken onboard by RCR Resources for the development of a new primary crushing plant and construction of nine kilometres of overland conveyors and associated power distribution.

According to Rio Tinto chief executive Chris Salisbury, the mining giant would continue teaming up with Pilbara owners. It offered a contract worth $3 million to contractor Eastern Guruma. The contract included development of earthworks, construction of light vehicle road and overland conveyor overpass and building associated drainage for Silvergrass.

Meanwhile, the company said it has received a tax bill of $447 million by the Australian Taxation Office (ATO). In a statement issued on Tuesday, Rio Tinto said it had been sent amended income tax assessments for a period of 2010 to 2013 by the ATO. As part of the assessment, the company will need to pay a tax of $379 million and interest of $68 million.

While the company has said it will contest the amended assessment, it will be paying half of the bill this month. A sum of $25.5 billion in taxes and royalties had been paid by the company in Australia during the period in question. “Rio Tinto voluntarily approached the ATO more than a decade ago seeking to confirm its pricing arrangements. The transfer price in dispute is in line with an outcome agreed by the ATO for years prior to 2010,” Rio Tinto said.

Source: YouTube/Financial Times