FMG awards $35m in works for three contractors

Fortescue Metals Group has awarded a major component overhaul and replacement services (MCORS) contract to three contractors with Port Hedland workshops, with Fortescue saying the contract would result in 17 full-time, local jobs.

Force Equipment, WesTrac and Komatsu were jointly awarded a $35 million service contract to conduct maintenance on Fortescue’s heavy mobile equipment in Port Hedland.

Previously, the vehicles and machinery were transported to Perth for repairs, a 3,200-kilometre return trip.

In a statement, Fortescue said Force Equipment, Westrac and Komatsu each had a longstanding presence in the Pilbara.

They have collectively invested over $20 million in local infrastructure and purpose-built facilities to deliver the services, and spend $15 million per year with local suppliers

Fortescue chief executive Elizabeth Gaines said the company was committed to creating economic opportunities in the Pilbara through engagement with regionally based businesses and supporting local jobs.

“Thriving businesses are fundamental to the economic prosperity of our communities and basing the maintenance of our heaving mobile equipment in Port Hedland is a very practical, common sense approach that has significant benefits for our community,” she said.

“Last financial year, 6 per cent of our procurement spend was with local Pilbara businesses and for more than 10 years we’ve proudly supported local organisations involved in initiatives, activities and events in the Pilbara through our community grants program.”

Town of Port Hedland Mayor Camilo Blanco said he was pleased Fortescue has awarded its MCORS contract to three Hedland-based businesses.

“Our focus as a town has been on ensuring job creation first and foremost benefits the future prospects of locals, and particularly our young people,” he said.

Shares in Fortescue were up 4.71 per cent to trade at $7.44.