The mining giant has announced a new services contract worth more than $500 million.
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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%.
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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.