21/01/2021 - 13:00

Fortescue awards $13m in indigenous contracts

21/01/2021 - 13:00

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Aboriginal businesses have won more than $13 million worth of contracts to work on Fortescue’s Iron Bridge magnetite project.

Fortescue awards $13m in indigenous contracts
Signing of the contract between Fortescue and Jukawalyi Resources. Photo: Fortescue Metals Group

Aboriginal businesses have won more than $13 million worth of contracts to work on Fortescue’s Iron Bridge magnetite project.

Iron Bridge is located in the Pilbara and is expected to produce 22 million tonnes per annum of high grade magnetite concentrate from mid-2022.

Two contracts have been awarded to Fortescue’s Native Title partners: 100 per cent Aboriginal-owned Jukawalyi Resources, and Yulu Joint Venture.

The Jukawalyi deal is for the supply of light vehicles for Iron Bridge, with Fortescue acting as a guarantor on the purchase of the vehicles.

Fortescue provides a $50 million guaranteed leasing facility with ANZ. Launched in 2018, the facility assists Aboriginal businesses procure required assets.

The Yulu JV is between Njamal Resources Enterprises and Australian construction company Icon SI.

Their contract is for the completion of non-mining process infrastructure work, including designing and constructing the main ore processing facility administration building and associated facilities.

Both contracts were awarded through Fortescue’s Billion Opportunities program, which, since its inception in 2011, has awarded more than $2.7 billion in contracts and sub-contracts to Aboriginal businesses and joint venture partners.

Fortescue chief executive officer Elizabeth Gaines said the business was proud of its relationship with Native Title groups across the Pilbara.

“These contracts will provide the opportunity to build local capability and asset ownership for these local Aboriginal businesses,” she said.

Jukawalyi managing director Joanne Taylor was thankful for Fortescue’s support.

“As a small family business based in Port Hedland, the ability to access finance in addition to the contract with Fortescue is transformative, providing us with the ability to take our business to the next level,” she said.

Yulu JV owner Troy Eaton echoed those sentiments.

“With the Pilbara positioned for ongoing development, the securing of this project leaves us well-positioned to capture future opportunities for both Yulu JV and the Njamal people,” he said.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

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