Fortescue meets Aboriginal contract target

Share in iron ore rise on news it has awarded $1bn to Aboriginal businesses.

Fortescue Metals Group (FMG) has met its target early of awarding $1 billion in contracts to businesses at least a quarter owned by Aboriginals, just over 18 months after setting the goal.

The iron ore miner had aimed to meet the target by the end of the calendar year.

Since setting the "Billion Opportunities" initiative in December 2011, Fortescue has awarded 102 contracts and sub-contracts to more than 50 Aboriginal businesses.

To be included in the program, a business had to be at least 25% owned by an Aboriginal person or group.

It came after the iron ore major issued about $500 million in accommodation services contracts to six Aboriginal joint ventures for the company’s villages the Pilbara.

Shares in the miner jumped 3.12% to $3.97 at 1105 AEST, against a benchmark fall of 0.12%.

Of the contracts awarded, 80% were to businesses at least 50% Aboriginal‐owned.

Want access to our latest research and new buy ideas?

Start a free 15 day trial and gain access to our research, recommendations and market-beating model portfolios.

Sign up for free

Related Articles