With space for 96 children and both day care and after-school care facilities, the centre should ease pressure on the town's limited child minding services, boost its ability to attract working families and increase jobs in the Pilbara town.
Rio Tinto greater Tom Price operations general manager Jamie Robinson said childcare was a critical service for the Tom Price community and the centre would provide a fantastic learning environment for children that attend.
He said the investment was an example of what government and industry could achieve when they worked together.
"Rio Tinto is listening to feedback from our monthly Local Voices surveys and will continue to invest in areas important to our community," Robinson said.
"We remain committed to improving the quality of the town's assets, creating more regional jobs and maximising occupancy of company housing."
Construction will begin mid-year, with the new centre expected to open in 2021.