Tag Archives: Sodexo

Sodexo to help Rio Tinto with Argyle diamond mine transition

Sodexo will continue to provide services to Rio Tinto’s Argyle diamond mine, in the Kimberley region of Western Australia, after the two companies agreed to renew their contract for another two years.

The move, valued at A$15.4 million ($10.6 million), further cements Sodexo’s commitment to Rio Tinto, which also includes delivering services to the leading global mining group’s Pilbara operations in the state.

Sodexo will work with Rio Tinto as it transitions the iconic diamond mine from a production site into rehabilitation, with the almost 37-year-old mine set to close at the end of 2020.

The contract was signed in November 2019, with the renewed period beginning retrospectively in February 2019. Sodexo is engaged until January 2021.

Sodexo will continue to deliver services to the site in the remote East Kimberley region of Western Australia, including managing aerodrome operations, village and industrial cleaning, village catering, retail, accommodation management, bus services, onsite industrial laundry operations and handyman services, it said.

Darren Hedley, Sodexo CEO of Energy & Resources Asia-Pacific, said: “The renewed contract is a great result for Sodexo, and thanks must go to our dedicated team for their commitment to building a strong relationship with our client, after we acquired Morris Corporation that had previously held the contract for three years.”

One of Sodexo’s recent focuses has been re-energising the site to enhance facilities and provide economic outcomes, thinking beyond standard village operations, it said.

As Argyle moves into its rehabilitation phase, Sodexo will work with Rio on areas including operational consolidation, while engaging with all stakeholders to support this transition, the company added.

FMG, Sodexo and Aboriginal businesses enter into ‘innovative contract model’

Fortescue Metals Group has entered into an “innovative contract model” that will see Aboriginal businesses carry out catering, accommodation management and lifestyle and recreation services for the Cloudbreak and Karntama villages in the Chichester Hub and Hamilton Village, in Port Hedland, Western Australia.

The Village Facilities Management agreements will be facilitated thorough a pact between Sodexo Remote Sites Australia, a food services and facilities management company, and three Aboriginal businesses owned by Pilbara Native Title groups, FMG said.

With a collective award value of A$165 million ($113 million) over three years, the contracts involve three individual unincorporated joint ventures agreements with Sodexo and 100% owned Aboriginal businesses Palyku Enterprises Pty Ltd, Karlka Facilities Management Pty Ltd and Kariyarra Hospitality Services Pty Ltd.

Fortescue Chief Executive Officer, Elizabeth Gaines, said: “Fortescue’s Aboriginal procurement initiative and approach to providing opportunities to Aboriginal people has empowered our Native Title partners by building the capability and capacity of Aboriginal businesses.

“These contracts are awarded on merit. Each of our business partners have competitively demonstrated their commercial ability to deliver the contracted services and by working within a joint venture, the Aboriginal businesses have the support and opportunity to increase their active participation and build long term sustainability.”

Across the three Fortescue sites, Sodexo will provide a range of village services, including accommodation services management to approximately 3,000 workers in a typical week, catering services – serving up to 8,500 meals daily, industrial cleaning, retail, health and wellbeing, transport and airport management services, as well as trade-based maintenance services delivery at Hamilton, Sodexo said.

The announcement is an important milestone for Sodexo after acquiring Morris Corp two years ago, which expanded Sodexo’s portfolio of facilities management operations in Australia, the company said. Morris had been Fortescue’s contractor since 2009.

Sodexo Chief Executive Officer of Energy and Resources Asia-Pacific, Darren Hedley, said: “Our ongoing work with Fortescue showed both companies were aligned in improving quality of village life, and valued strong engagement with communities.

“We’re looking forward to working with our joint venture partners, Kariyarra Group, Palyku Group and Karlka Group, and Fortescue as we continue to identify opportunities for constant improvements across the sites to deliver the best outcomes for Fortescue, with a priority being maintaining safety and quality operations for its growing workforce.”

Fortescue says it has awarded A$2.4 billion in contracts to over 115 Aboriginal businesses and joint venture partners since 2011 through its Billion Opportunities initiative.

Westgold Resources gets uses to village life with Sodexo

Sodexo is set to deliver more services for Westgold Resources after the two companies agreed to broaden their contract to include a fourth mine site in Western Australia.

This contract amendment, which will see the company start work on the Big Bell site, increases the value of Sodexo’s current contract with the Australia-based gold miner to A$40 million ($27.2 million).

Under this contract, Sodexo is scoped to deliver all village, transportation, catering, cleaning, building maintenance and landscaping services at the site.

The Big Bell site, located 24 km northwest of Cue in Western Australia, was launched on June 1, 2019, to support operations at the Big Bell underground mine, as part of the larger Cue gold operations. This would see daily commute times reduced, while ensuring worker facilities are readily available.

Westgold hit first ore at the Big Bell underground mine late last year. It had been dewatering and refurbishing the Big Bell underground mine for over two years. The base load for the Cue 10-year development plan is based around the Big Bell underground mine – which is expected to provide 10.1 Mt at 3 g/t Au from the company’s 2020 financial year.

Sodexo’s existing work with Westgold to provide services to the Cue, Fortnum and Bluebird mining sites is part of a three-year contract that commenced in June 2018. The Big Bell contract will conclude in 2021 in alignment with the contract for these sites.

Westgold Director of Operations, Steve Norregaard, said: “Sodexo continues to demonstrate its commitment to maintaining safety and quality operations for our mining workforce. The Big Bell mine is accelerating fast to become the cornerstone asset in the Cue operations. Sodexo’s facilities management services to the Big Bell mine site give us peace of mind that workers will be provided access to high-quality facilities and a home-away-from-home experience.”

Sodexo CEO Mining APAC, Paul Cooper, said: “Australian mining is a sector where Sodexo continues to excel. The company successfully demonstrated its dedication to service excellence by improving village life across three of Westgold’s existing sites and this supported our proposal for Big Bell. Being awarded the Big Bell contract is testament to a strong working relationship with Westgold, after acquiring Morris Corporation that had previously held the contract for three years.”