Australia will soon see its first indigenous-owned iron ore mine, thanks to a deal struck with Fortescue Metals Group.
The Australian Aboriginal Mining Corporation entered a commercial agreement with FMG today, with chief executive Nev Power signing an Iron ore Sale and Purchase Agreement with AAMC chairman Daniel Tucker.
The deal means that AAMC will have access to rail and port infrastructure, enabling their entry to the Pilbara iron ore market.
“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,” 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.”
The AAMC owned Extension project received environmental approval in March this year, and is expected to produce between two to four million tonnes of iron ore for export each year.