09/05/2022 - 17:03

K2fly adds BHP to growing arsenal of clients

09/05/2022 - 17:03

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Mining software developer K2fly has sealed a one-year deal worth $2.12 million with BHP to roll out its ground disturbance solution data management system to the mega-miner’s iron ore operations in the Pilbara region of Western Australia. The company now provides its ground disturbance solution to the three biggest iron ore players in WA, with Rio Tinto and Fortescue Metals Group also on the roll call.

K2fly adds BHP to growing arsenal of clients
K2Fly has sealed a deal to roll out its data management system at BHP’s Pilbara iron ore operations. Credit: File

Mining software developer K2fly has sealed a one-year deal with BHP to roll out its ground disturbance solution data management system to the mega-miner’s iron ore operations in the Pilbara region of Western Australia.

The company now provides its ground disturbance solution to the three biggest iron ore players in WA, with Rio Tinto and Fortescue Metals Group also on the roll call.

The initial one-year contract with BHP has a total contract value of $2.12 million and annual recurring revenue of $620k.

The ASX-listed company is blazing a trail in the mining software-as-a-service sphere providing an encompassing range of software from traditional mining items such as resource inventory calculation to tools that facilitate meeting the increasingly important environmental, social and governance, or ‘ESG’ criteria.

The company’s ground disturbing solution is a cloud-based platform for applying, approving, tracking, reporting and submitting closure of permits and rehabilitation commitments surrounding ground disturbance activities.

According to the company the software provides customers with a comprehensive approval and tracking system for ground disturbance works enabling users to receive real-time operational updates to keep track of clearance limits, obligations and any breaches.

Ground disturbance activities include such things as drilling operations, track clearance, bulk sampling and clearing for camp sites and storage areas. Under state government regulations, companies can be granted ground disturbing permits however, under the terms of the permit, companies are required to rehabilitate the ground within six months after the ground disturbing activity ends and lodge a report to meet legislative obligations.

Key reporting obligations dates and anniversaries can be difficult to keep track off and easily missed, resulting in costly fines and potentially forfeiture of an exploration licence.

Recent events in the Pilbara, specifically the destruction of Juukan Gorge by Rio Tinto in May 2020, have shone a spotlight directly on how mining companies ensure they better protect the environment, cultural heritage sites and engage with communities.

According to K2fly, the ground disturbance solution software is the world’s only commercial off-the-shelf solution on the market that enables companies to maintain their social license to operate by improving governance around statutory requirements.

BHP’s Western Australian iron ore operations produce more than 245 million tonnes of iron ore annually placing the company firmly in the top five producers of iron ore globally.

Located in the heart of the Pilbara, BHP’s operations encompass four processing hubs and five mines, connected by more than 1000km of rail infrastructure and port facilities.

Added to its extensive mining operations is a slew of exploration licences the company is actively exploring and conducting ground disturbance activities, all requiring permitting, tracking, reporting and closure of rehabilitation commitments.

K2fly’s Chief Executive Officer, Nic Pollock said: “We are delighted to be starting our relationship with BHP, who will join many other tier 1 global mining companies as a valued client of K2fly. Our Ground Disturbance Solution is the only system which helps provide better transparency and governance whilst avoiding damaging the environment or protecting cultural heritage and ensuring all stake holder engagement and obligations are met.”

The acronym ESG is becoming the buzzword within the resources space as companies endeavour to improve a somewhat tarnished facade in light of recent events in the Pilbara.

 

Is your ASX-listed company doing something interesting? Contact: matt.birney@businessnews.com.au

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