Tag Archives: Billion Opportunities

Fortescue adds to Billion Opportunities program with Iron Bridge contracts

Fortescue Metals Group has continued its longstanding commitment to Aboriginal procurement and delivery of benefits for its Native Title partners, with over A$13 million ($10.1 million) of new contracts awarded as part of the company’s Iron Bridge Magnetite project.

Two contracts have been awarded to 100%-owned Aboriginal-owned business Jukawalyi Resources Pty Ltd, and the Yulu Joint Venture (a joint venture company between Njamal Resource Enterprises Pty Ltd and Icon SI (Aust) Pty Ltd).

Both companies are owned by members of the Njamal Native Title group, who are the traditional custodians of the land where Iron Bridge is located.

Under the contract, Jukawalyi will provide light vehicles for the Iron Bridge operations. The future sustainability and ongoing success of Jukawalyi will be further supported with Fortescue acting as a guarantor for the purchase of the vehicles, through Fortescue’s guaranteed leasing facility with ANZ, it said.

Yulu JV was awarded a contract to complete a portion of the non-mining process infrastructure work, including designing and constructing the main ore processing facility administration building, laboratory building and associated facilities.

The Iron Bridge, operated under an unincorporated joint venture between Fortescue subsidiary, FMG Magnetite Pty Ltd, and Formosa Steel IB, covers the development of a new magnetite mine, including processing and transport facilities. The $2.6 billion development is expected to produce 22 Mt/y (wet) of high grade, magnetite concentrate, with first ore in 2022.

Fortescue Chief Executive Officer, Elizabeth Gaines, said: “Fortescue is proud of our strong relationships with Native Title groups across the Pilbara, which is delivering significant benefits including jobs, training and business development opportunities for Aboriginal people, their families and their communities.

“Empowering businesses like Jukawalyi and Yulu JV to make long-term, beneficial business decisions is at the heart of our Billion Opportunities initiative. These contracts will provide the opportunity to build local capability and asset ownership for these local Aboriginal businesses.”

Jukawalyi Managing Director, Joanne Taylor, said: “As a small family-owned 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.”

Yulu JV owner, Troy Eaton, said: “We are proud to secure this work for such an important project. 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.”

Since its inception in 2011, Fortescue’s Billion Opportunities program has awarded over A$2.7 billion in contracts and sub-contracts to Aboriginal businesses and joint venture partners.

Cundaline Resources to work on Iron Bridge magnetite project

Fortescue Metals Group has awarded 100% Aboriginal owned company, Cundaline Resources Pty, with the contract for the West Canning Basin earthworks at its majority owned Iron Bridge magnetite project, in Western Australia.

The award, which continues FMG’s longstanding commitment to supporting local and Aboriginal businesses, will see the group carry out the earthworks, access preparation and rehabilitation services associated with the hydrogeology drilling program for the Iron Bridge project.

The Iron Bridge project will deliver 22 Mt/y (wet) of high grade 67% Fe magnetite concentrate product, according to FMG, with the first stage completed successfully by building and operating a full-scale pilot plant at the North Star mine site. This pilot project included the use of a dry crushing and grinding circuit, which FMG plans to leverage in stage two.

The second stage of the project comprises the construction of a large-scale process plant, and port infrastructure to support the production of 22 Mt/y (wet) of iron ore.

In FMG’s March quarter results, released late last month, the company said the $2.6 billion project was progressing on schedule and budget, with first concentrate production planned in the first half of calendar year 2022.

Key milestones in the three-month period included detailed engineering passing the halfway mark, procurement of major long lead process equipment committed and the first blast at the ore processing facility site, enabling bulk earthworks to commence.

Fortescue’s Chief Executive Officer, Elizabeth Gaines, said Fortescue’s Aboriginal procurement initiative, Billion Opportunities, has awarded over A$2.5 billion ($1.6 billion) in contracts and sub-contracts to Aboriginal businesses and joint venture partners since the program began in 2011.

“We are committed to building on this proud track record through our growth projects, Eliwana and Iron Bridge, which have already awarded over A$60 million in contracts to Aboriginal businesses,” she said.

“Importantly, Billion Opportunities is focused on building the capability and capacity of Aboriginal businesses, and it is very pleasing to see Cundaline, a business which commenced operations as a labour hire company, now expand into earthworks and mechanical maintenance contracting areas.”

Cundaline’s Managing Director, Brenden Taylor, said: “The West Canning Basin Earthworks contract is a milestone project and the first of a number of potential opportunities on the Iron Bridge magnetite project for Cundaline.

“We have worked hard to transition our company from a labour hire specialist to a contracting entity managing and delivering our own projects. I am particularly proud of my team for their professionalism and ‘can do’ attitude and not giving up during the tough times.

“Along this journey we have worked together with other Aboriginal businesses and I especially want to acknowledge Fortescue, through the Billion Opportunities initiative, for making a real difference for a local and Aboriginal business like Cundaline to continue to grow our capacity and capability into the future.”

FMG extends waste management services contract with PTK Environmental Services

Fortescue Metals Group has announced the extension of its waste management services contract to PTK Environmental Services (PTK), an Aboriginal business owned and operated by Palyku member Tammy O’Connor, for a further five years.

The extension of the contract with PTK brings the total value of contracts and subcontracts awarded to Aboriginal businesses and joint ventures under Fortescue’s Billion Opportunities procurement initiative to over A$2.5 billion ($1.7 billion) since the program began in 2011, FMG said.

Fortescue’s Chief Executive Officer, Elizabeth Gaines, said: “Our Billion Opportunities program is a critical element of our commitment to provide economic and employment opportunities for Aboriginal people.

“We are incredibly proud to partner with over 120 Aboriginal businesses and joint venture partners and to support the growth and development of driven business leaders like Tammy O’Connor, to build capability and capacity and contribute to the ongoing sustainability of Aboriginal companies.

“We have worked with Tammy and PTK for a number of years and building on the initial services contract awarded in 2017. We are delighted to extend the contract for these significant waste management services for a further five years.”

PTK Director and Shareholder, Tammy O’Connor (pictured, middle), said: “We pride ourselves on the safe, high quality services we provide and it is great to have this recognised by Fortescue with the extension of our contract. The flow-on effect of our work with Fortescue has huge benefits for the community by providing real opportunities for people to get jobs and support their families.”

Fortescue’s Chief Operating Officer, Greg Lilleyman (pictured left), said reducing waste through the prevention, reduction, recycling and reuse of materials produced during operations is a priority for Fortescue.

“Last financial year, Fortescue recycled 91% of non-mineral waste, such as food, packaging and office consumables, from across our sites,” he said. “We look forward to working with Tammy and the PTK team as we continue to reduce and manage our waste.”

During the half year, Fortescue’s Billion Opportunities program supported Aboriginal companies with over A$258 million in new contracts awarded to 16 Aboriginal businesses, FMG said.