Fortescue awards $165m contract to Sodexo JV

Sodexo, together with Native Title businesses in the Pilbara, has won a contract to provide village services for Fortescue Metals Group in Western Australia.

The contracts involve three individual joint ventures agreements with Sodexo and Aboriginal-owned businesses Palyku Enterprises, Karlka Faacilities Management and Kariyarra Hospitality Services.

The contracts, collectively worth $165 million over three years, include catering, accommodation management and lifestyle and recreation services.

Sodexo will work in a JV with Native Title groups to ensure positive community engagement and quality of service at the Hamilton, Cloudbreak and Christmas Creek camps.

The JV will work with the iron ore miner to provide services ranging from accommodation to transport and wellbeing.

Sodexo chief executive officer of energy and resources Asia Pacific, Darren Hedley said the company’s ongoing work with Fortescue showed both companies were aligned in improving quality and 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,” Hedley said.

Across the three Fortescue sites, Sodexo will provide a range of village services servicing approximately 3000 workers in a typical in a week, with 8500 meals daily.

Fortescue chief executive officer Elizabeth Gaines said the company’s procurement initiative and approach to providing opportunities to Aboriginal people had empowered Native Title partners by building the capability and capacity of Aboriginal businesses.

“Each of our business partners have competitively demonstrated their commercial ability to deliver the contracted services,” Gaines said.

“By working within a joint venture, the Aboriginal businesses have the support and opportunity to increase their active participation and build long term stability.”

Fortescue’s pioneering Aboriginal procurement initiative, Billion Opportunities, has awarded $2.4 billion in contracts to 115 Aboriginal business and joint venture partners since 2011.

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