Fortescue announces innovative contract model with Aboriginal businesses for village services

Dec 17, 2019

Fortescue Metals Group (Fortescue) has announced the award of Village Facilities Management Agreements through an innovative contract model between Sodexo Remote Sites Australia Pty Ltd (Sodexo) and three Aboriginal businesses owned by Pilbara Native Title groups.

With a collective award value of A$165 million over three years, the contracts involve three individual unincorporated joint ventures agreements with Sodexo and 100 per cent owned Aboriginal businesses Palyku Enterprises Pty Ltd, Karlka Facilities Management Pty Ltd and Kariyarra Hospitality Services Pty Ltd.

The contracts include catering, accommodation management and lifestyle and recreation services for Fortescue’s Cloudbreak and Karntama villages in the Chichester Hub and Hamilton Village in Port Hedland.

Fortescue Chief Executive Officer Elizabeth Gaines said, “Fortescue’s Aboriginal procurement initiative and approach to providing opportunities to Aboriginal people has empowered our Native Title partners by building the capability and capacity of Aboriginal businesses.

“These contracts are awarded on merit. Each of our business partners have competitively demonstrated their commercial ability to deliver the contracted services and by working within a joint venture, the Aboriginal businesses have the support and opportunity to increase their active participation and build long term sustainability,” Ms Gaines said.

Sodexo Chief Executive Officer of Energy and Resources Asia-Pacific Darren Hedley said: “Our ongoing work with Fortescue showed both companies were aligned in improving quality of village life, and valued strong 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 to deliver the best outcomes for Fortescue, with a priority being maintaining safety and quality operations for its growing workforce.”

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