Fortescue Metals Group Limited (ASX: FMG, Fortescue) has entered into a commercial agreement with Australian Aboriginal Mining Corporation Pty Ltd (AAMC) which will enable the establishment of Australia’s first Aboriginal owned and operated iron ore mine.
Fortescue CEO Nev Power today signed an Iron Ore Sale and Purchase Agreement on behalf of the company with AAMC Chairman Daniel Tucker at a ceremony held in the Fortescue Centre in Perth.
Under the agreement, Fortescue will provide AAMC with access to its world class infrastructure with AAMC able to deliver up to two million tonnes per annum from its projects to either Fortescue’s port or rail facilities over a five year period.
“We’re very pleased to be working with AAMC on this significant deal. Today’s agreement underlines very clearly Fortescue’s commitment to provide meaningful opportunities for Aboriginal business development and to negotiate agreements in good faith for third parties to access rail and port infrastructure on commercial terms,” Mr Power said.
“Fortescue is proud to play a role in helping Aboriginal people seize the life-changing economic opportunities that mining can offer. Providing economic participation through our land access agreements as well as the payment of Native Title Royalties is what drives real positive change in the communities in which we operate.
“Fortescue is focused on building up Aboriginal communities through full economic participation rather than passive welfare and today’s signing ceremony is another example of how all Australians can work together with respect to end Aboriginal disparity in our generation.”
Background
• Fortescue’s direct employed workforce is 13% Aboriginal and about 1000 Aboriginal people work for Fortescue or its contractors.
• Fortescue’s VTEC model of training for a guaranteed job has been adopted and rolled out as a national program by the Federal Government, with Fortescue’s Roebourne and Port Hedland VTEC’s accredited under the model.
• Fortescue’s Billion Opportunities program has now awarded more than $1.8 billion in contract value to Aboriginal businesses and joint ventures.