The Western Australian Chamber of Commerce and Industry, the Chamber of Minerals and Energy of WA and the Australian Mines and Metals Association welcomed the news of a $US7.2 billion ($A7.9 billion) funding package for the Pilbara iron ore project.

“This announcement is good news for the WA business community, who are currently completing construction of other major projects,” CCI CEO Deidre Willmott said.

“Large resources projects like Roy Hill iron ore mine generate wealth for the local economy through employment creation and business supply opportunities.

Wilmott said the CCI was helping local suppliers maximise their opportunities.

“CCI is pleased to be working with Roy Hill to reinvest in the WA economy by listing supply opportunities on CCI’s Project Connect website, where WA businesses can register their interest and capabilities,” she said.

“The Industry Capability Network WA will then begin the process of vendor identification for packages of work.”

There are already 2500 workers onsite, with that number to peak at 3600 later this year.

“Roy Hill Holdings’ continued pursuit of this project represents a substantial vote of confidence in the future of WA’s resources sector,” CME CEO Reg Howard-Smith said.

“This is great news for workers in mining and construction and shows there are still opportunities out there despite recent reports of slowing growth.”

CME said almost $3 billion had been spent or committed on local content to date.

AMMA CEO Steve Knott welcomed the news but said securing projects of Roy Hill’s magnitude shouldn’t be taken for granted.

“Over the past two years, more than $150 billion worth of resource projects in Australia's investment pipeline have been delayed or cancelled, with investors not progressing critical job-creating projects such as the $45 billion Browse LNG plant, BHP Billiton's $30 billion Port Hedland outer harbour and the $20 billion Olympic Dam expansion,” he said.

“Everything that we can do to improve our nation's competitiveness and secure further investment of this size is critical.”

Knott said unbalanced workplace laws, high costs and over-regulation were pricing Australia out of the resource investment market.

“It is now 30% more expensive to build a resource project in Australia than in Canada, one of our closest competitors,” he said.

“The first step in reversing the drain on Australia's competitiveness and helping more companies follow Hancock Prospecting's lead in bringing new investment to this country is ensuring key policies the Abbott government was elected to implement are passed.

“Beginning to restore stability to our workplace laws, removing the anti-business carbon and mining taxes, reducing unnecessary red tape and returning law and order to our construction sites will help attract greater investment to the resource industry and keep this vital cog in Australia's economic wheel turning.”