Fortescue Metals group has signed an $18 million agreement with the Nyamal people to provide mining equipment for its Iron Bridge magnetite project.
The agreement has been signed with Nyamal Holdings, a wholly owned subsidiary of Port Hedland-based Nyamal Aboriginal Corporation.
Nyamal Holdings will provide five contour drill rigs, one stemming loader and two platform rigs to Fortescue.
The iron ore miner said this will grow to include six additional platform rigs over the next two years to meet the Iron Bridge mine plan.
Fortescue said the agreement builds on $331 million in contracts already awarded to Nyamal businesses since 2019.
Nyamal Aboriginal Corporation chair Gavin Mitchell said the contract would provide new opportunities.
“Nyamal Holdings are excited to secure this significant contract for the Nyamal people enabling us to own the fleet which will provide ongoing training and employment opportunities for Nyamal members,” he said.
“Nyamal Aboriginal Corporation have strong and ongoing engagement with Fortescue, and we are pleased that through this contract we are able to build on this longstanding relationship.”
The Nyamal people are one of seven traditional owner groups with which FMG has signed land access or project agreements.
This is expected to result in FMG paying royalties to the Nyamal, once production ramps up at Iron Bridge.
The Nyamal people also have an agreement in place with Hancock Prospecting.
Hancock subsidiary Atlas Iron has previously awarded contracts to a joint venture between Nyamal traditional owner business East West Pilbara and Forrestdale-based Ozland provided civil and construction works as well as being involved in ongoing operations.
NAC’s most recent annual report, for the year to June 2022, showed it had total revenue of just $1.1 million and net assets of $161,000.
A related entity, the Njamal People’s Trust, has much more substantial income.
It was paid royalty income of $22.9 million in FY22 and finished the financial year with net assets of $27 million.