Fortescue Metals Group Limited inked an Iron Ore Sale and Purchase Agreement with Australian Aboriginal Mining Corporation Pty Ltd on Monday, the companyannounced in a statement.
The five-year deal will allow the indigenous-owned AAMC to transport up to two million tonnes of iron ore yearly from its Pilbara mining operation through Fortescue’s world-class port or rail facilities. Fortescue can then purchase the iron ore or sell it on behalf of AAMC.
The agreement will help create Australia’s first Aboriginal owned and operated iron ore mine.
“Today’s agreement underlines very clearly Fortescue’s commitment to provide meaningful opportunities for Aboriginal business development. The company is focused on building up Aboriginal communities through full economic participation rather than passive welfare,” said Fortescue CEONev Power.
Indeed, the company’s Billion Opportunities program has awarded more than AU$1.8 billion in contract value to Aboriginal businesses and joint ventures. Fortescue’s workforce is 13 percent Aboriginal.
“ This is a great outcome for both AAMC and Fortescue, a fantastic result for our shareholders and an important step for the continued advancement of Aboriginal peoples in the Pilbara that will now see them sharing in the wealth that is generated on their traditional lands,” said AAMC chairman Daniel Tucker in a post by The Australian .
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