Fortescue Metals Group Ltd - Embracing Social Responsibility

Fortescue aspires to be the corporate citizen of choice that is welcomed by the communities that host our activities.

At Fortescue we aim to enhance communities, behave with respect and care for people and the environment, take broad responsibility for the effects of our presence and do what we say we will do. Our focus is on creating self empowerment within communities. We do this by encouraging innovative partnerships and initiatives that build the capacity of the local communities and remove the need for ongoing support and dependency.

Fortescue works with our stakeholders who include our people, Federal, State and local governments, communities, traditional owners of land, suppliers, customers, non-government organisations, pastoral leaseholders, investors and media. Together with our stakeh Fortescue Community olders, we align to positively manage change and secure opportunities for people, economies, the natural environment, the built environment and communities.

A socially Aware Outreach

At Fortescue we act as a catalyst to build community capacity in various ways and have an established approach that aims to provide mutual benefit.

People

People are our business. Communities have the opportunity to be involved in our activities, either directly through employment or indirectly. By welcoming a diversity of people and ideas, Fortescue encourages opportunities for self development, shared learning and benefits for our stakeholders. We respect the culture and beliefs of people generally, and in particular, people in our host communities.

VOCATIONAL TRAINING AND EMPLOYMENT CENTRE

Fortescue's Vocational Training and Employment (VTEC) program is driven by an immediate vision to train local Aboriginal people so they will become employed and contribute towards their family and community development. The longer term vision of VTEC is one of Aboriginal social and economic community wellbeing. The program was established in 2006 and has since provided training, employment opportunities and support to over 1000 Aboriginal people.

Working in tandem with VTEC, Fortescue successfully achieved its Summit 300 target to prepare 300 Aboriginal people from across the Pilbara for employment with Fortescue or associated contractors. Summit 300 is Fortescue's commitment to the Australian Employment Covenant, the ambitious nation-wide initiative to secure commitments for 50,000 real, sustainable jobs for Aboriginal Australians.

To read more about the VTEC program click here

Natural Environment

Many of the locations in which we operate present challenging environmental sensitivities. Managing the effect of our activities in these areas is always a core focus, and we are committed to maintaining sound environmental management practices and meeting our responsibilities throughout the lifecycle of our activities.

WATER

Water is an important commodity the world over and Fortescue is committed to mitigating environmental impacts related to our operation as demonstrated through our award winning groundwater management program.

Fortescue's innovative approach to groundwater management at our Cloudbreak minesite has won national recognition through the Australian Water Association awards.

Our Managed Aquifer Recharge Scheme of groundwater reinjection at Cloudbreak allowed us to return approximately 73% of extracted water back into aquifers. This greatly reduces our effect on groundwater levels and quality in the region. The process allows us to withdraw water for dewatering of ore pits and return the balance after site use to the groundwater system to conserve water for future use and mitigate environmental effects.

The Cloudbreak Managed Aquifer Recharge Scheme is one of the largest and most complex managed aquifer recharge schemes in Australia with a capacity of 25 gigalitres (GL) of water each year. It is also the first of its kind in a variable density groundwater setting and within a landscape with unique cultural and environmental value.

First established in August 2008, the scheme has been operating as a sustainable closed system with zero surface discharge since September 2009. It comprises over 200 abstraction bores, ten in-pit pumps, 200 kilometres of pipeline, six major transfer or settlement ponds, 100 brackish injection bores and 20 saline injection bores.

The Australian Water Association has recognised the achievements of Fortescue's scheme, awarding it the national award for Infrastructure Project Innovation at its Ozwater'11 conference.

To find out more about the environmental programs, research and policy click here

Social

Fortescue invests in our communities at both a regional and local level. Through proactive engagement with our stakeholders, Fortescue is working towards creating opportunities, partnerships and community self empowerment.

PILBARA CITIES

Fortescue actively supports the Western Australian Government's Pilbara Cities vision with its commitment to a residential workforces, local employment, training and employment of Aboriginal people. We also provide opportunities for local businesses and contractors to increase capability at various locations across the Pilbara. We have made local investments in Port Hedland and Newman which will contribute to this vision such as funding initiatives that include;

Establishing and maintaining Vocational Training and Employment Centres at South Hedland and Roebourne, that provide work readiness, skills training, employment programs and support to assist Aboriginal people to improve their employment prospects.
Supporting a government housing initiative to attract and retain more doctors to Port Hedland
Sponsorship of the South Hedland Swans Football Club

To read more about our community projects click here

Economic

Our operations can provide a strong base for economic growth of the communities through paying taxes and royalties, working with local suppliers and focusing on local employment.

OUR LOCAL COMMUNITY CONTRACTING POLICY

At Fortescue we inform local community contractors about our contracting style and terms and conditions. We seek endorsement from communities crediting Fortescue with providing opportunities to local contractors and service providers.

Key indicators of our effectiveness include;

Local contractors request pre-qualification training from Fortescue
Local contractors say they understand why they did not obtain a contract
Local communities acknowledge that Fortescue's local content strategy is in place, with explicit target about the contracting volume that Fortescue wants to source locally within a number of years
Local contractors say they are increasingly able to get subcontracts from Fortescue's larger contractors.

A BILLION OPPORTUNITIES
Fortescue has committed to awarding contracts to a total value of $1 billion to Aboriginal contractors by 2013. We have adopted a companywide approach to achieve this goal – one which will involve all employees and contractors working towards achieving this stretch target.

Since 2010, Fortescue has awarded contracts to Aboriginal contractors including Joint Ventures (JVs), to the value of more than $320 million.

Our expansion from 55mtpa to 155mtpa in 2013 creates numerous opportunities for Aboriginal businesses to actively participate in Fortescue’s growth through direct contracts, JVs or sub-contracts with Fortescue’s major contractors.

This commitment is in line with our Land Access Agreements through which we will provide contract opportunities for our Traditional Owners and a strategy has been developed, involving all sites, to help the business achieve this target.

In addition to our commitment to provide jobs, training and support, the awarding of these contracts will help develop and strengthen the economic circumstances of Aboriginal contractors-owned or affiliated by the Native Title Groups.

To read more about the Billion Opportunities program click here

Built Infrastructure

Investment in public infrastructure benefits economic growth of the community. Fortescue continues to invest locally and search for innovative solutions to improve infrastructure.

SUPPORTING COMMUNITY AMENITIES
Fortescue has funded initiatives such as;

Investing almost $100 million on the construction of new houses in Port Hedland and has budgeted for a five year housing construction program
Contributing funds to enable the upgrade of 36 kilometres of road in the Shire of East Pilbara
Helping a children's charity to build a house in Port Hedland, with the profit from the sale to be used by Variety WA towards its programs for local children
Establishing a world class iron ore metallurgical testing plant at Newman that will help increase local employment opportunities and local community business opportunities
Facilitating and sponsoring the establishment and operation of Scotty's Training Cafe at Port Hedland, which will act as a community meeting point and provide a vocational training environment for workers in hospitality.

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Our Commitment

Embracing Social Responsibility

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