Fortescue Metals Group is aiming to award $1 billion of contracts to Aboriginal businesses and joint ventures over the next decade through its new green energy operation.
Fortescue Metals Group is aiming to award $1 billion of contracts to Aboriginal businesses and joint ventures over the next decade through its new green energy operation.
The announcement came on the same day Fortescue said it had reached $3 billion worth of contracts and sub-contracts to Aboriginal businesses through its mining business.
The $3 billion milestone coincided with the 10-year anniversary of its Billion Opportunities program.
Launched in 2011, the program aimed to award $1 billion of contracts to Aboriginal businesses.
The target has been progressively increased since then.
Chief executive Elizabeth Gaines said the original goal was an ambitious, stretch target.
“We engaged with only two Aboriginal businesses at that time,” Ms Gaines told guests at the Cloudbreak mining hub.
Fortescue senior manager communities Heath Nelson said there were no indigenous procurement targets in the mining industry back then.
“The rest of Australia has followed,” he said.
Fortescue said it had awarded contracts to 130 Aboriginal businesses and joint ventures during the past decade, on its way to hitting the $3 billion milestone.
The very first contract awarded under the program was to NEMMS JV, led by Bruce Bung and Sue Bung.
The Bung family continues to have major commercial operations in the Pilbara, most notably the IMC NEMMS JV with Perth-based Iron Mine Contracting.
The IMC NEMMS JV is ranked as Western Australia's third largest indigenous business in Business News’ Data & Insight, ranked by total staff.
Fortescue said it had 65 Aboriginal businesses in its supply chain currently.
Ms Gaines said strong, sustainable Aboriginal businesses created employment and development opportunities.
“Procurement is a powerful tool for social and economic change,” she said.
The group’s new target is to award $1 billion of Aboriginal contracts through Fortescue Future Industries, a subsidiary company aiming to develop green energy projects in Australia and overseas.
The latest company to win a contract with the group was Brindabella Resources, a majority Aboriginal-owned business established by five women who are traditional owners from the Pilbara.
Brindabella has been awarded a three-year contract to provide plant equipment hire at Cloudbreak.
Director Elsa Derschaw said the business had been operating for three years and the new contract was a tremendous benefit.
Brindabella has utilised a leasing facility through ANZ Bank, helped by a guarantee provided by Fortescue.
This has enabled the company to purchase a new grader, something Ms Derschow had expected would never be possible.
Fortescue said today it has guaranteed $25 million of leasing finance through the ANZ scheme, which was launched in 2017 and has potential to go up to $50 million.
* The journalist travelled to Cloubreak today as a guest of Fortescue.
