Insights

Fortescue (ASX:FMG) share price up as miner announces largest contract ever with Aboriginal group

The mining giant has announced a new services contract worth more than $500 million.
The post Fortescue (ASX:FMG) share price up as miner announces largest contract ever with Aboriginal group appeared first on The Motley Fool Australia. –

The Fortescue Metals Group Limited (ASX: FMG) share price is edging higher after the iron ore mining giant released a positive announcement to the market this morning.

At the time of writing, Fortescue shares are 0.59% higher at $17.93 apiece.

The Fortescue share price has been retreating this month due to the falling iron ore spot price, which sank a further 4.47% overnight to US$117.50 per tonne.

What did Fortescue announce?

Fortescue advised that it has established a co-management framework for the Eastern Guruma People. Members of Wintawari Guruma Aboriginal Corporation (Wintawari), the prescribed body corporate, are representing the community.

The collaboration will oversee the development of new mines at Fortescue’s Solomon Hub operations.

In particular, both parties will establish a culturally safe mining joint venture to mine the East and West Queens deposits in Eastern Guruma country.

The 10-year mining services contract is worth an estimated $500 million. This makes it the largest contract ever awarded to an Aboriginal business by Fortescue.

A working group will be formed to work on all stages of the mine development. These include heritage and environmental approvals, resource drilling and definition, and mine planning to operations and rehabilitation.

Fortescue CEO, Elizabeth Gaines commented:

Fortescue is proud of our longstanding relationship with Wintawari Guruma Aboriginal Corporation. We are confident that this new collaborative framework will strengthen our ties with the Eastern Guruma People, through the unique opportunity to have a seat at the table to share cultural knowledge and guide the growth of Fortescue’s operations on their country.

Fortescue said it has awarded more than $3.5 billion in contracts to Aboriginal businesses and joint ventures through its Billion Opportunities program.

The new contract represents another partnership with the Aboriginal business sector.

Fortescue share price summary

It has been a rollercoaster ride for Fortescue investors over the past 12 months.

The company’s shares are up just 3.37% for the period but were trading significantly higher at times during 2021. In July, it was trading above $26.

Year to date, the Fortescue share price is down by 27.6%.

The post Fortescue (ASX:FMG) share price up as miner announces largest contract ever with Aboriginal group appeared first on The Motley Fool Australia.

Should you invest $1,000 in Fortescue right now?

Before you consider Fortescue, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Fortescue wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

Fortescue (ASX:FMG) share price at year-to-date lows, analysts slash iron ore forecasts
The Fortescue (ASX:FMG) share price is down 31% in 7 weeks. What’s next?
Leading brokers name 3 ASX shares to sell today

The latest ASX 200 mining shares to get hit by broker downgrade

How have these ASX 200 iron ore shares performed since reporting results?

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!