ESG software provider K2fly will continue to supply mining behemoth BHP with its “ground disturbance” solution for another three years after the “Big Australian” agreed to a contract extension.
Management says the new deal, which covers the global miner’s iron ore operations in Western Australia’s Pilbara region, will generate annual recurring revenue of $664,000 and has a total contract value of $1.99 million. The extension follows the original one-year deal that kicked off in May last year.
K2fly chief executive officer Nic Pollock said: “Our Ground Disturbance solution is the only commercial off the shelf solution available in the market globally and speaks to how our customers are increasingly attributing value to the importance of proper resource governance on land and protecting their license to operate. We are delighted to extend our contract into a 3-year term with another global tier 1 client.”
The company’s solution aims to allow clients to apply for, approve, track, report and submit the closure of ground disturbance permits, while also managing rehabilitation commitments.
The ink only recently dried on an agreement with French multinational miner Eramet SA for its resource disclosure solution after the Euronext-listed player signed a three-year deal last week worth $564,000 to cover its five operations and four commodities. Management says the partnership will provide an annual recurring revenue of $152,000 and is optimistic that the relationship will lead to future opportunities.
K2fly is rapidly carving out a reputation as a leading provider of resource governance solutions for “net positive impact” in environmental, social and governance (ESG) compliance, disclosure and technical assurance. The provider’s software as a service (SaaS) suite covers areas including land access, ground disturbance, tailings and heritage management and mine rehabilitation.
The company’s success appears to stem from hitching its wagon to attention afforded to it by the global investment market and the wider society on ethical corporate practice and responsiveness to environmental and social issues.
K2fly products are currently used across 62 countries and 500 sites and its stable of clients include four of the five major iron ore miners and four of the top 10 global gold majors.
The company was born back in 2016 with a focus on delivering software and services to “tier-one” clients working in the asset-intensive sectors of mining, utilities, oil and gas and rail. As opportunities were spotted, particularly around integrated reporting solutions, K2fly developed proprietary software solutions to answer its client’s needs.
The company’s product offering has now expanded to cover key ESG challenges for customers, putting it at the tip of the spear in the area of reporting software solutions.
With the heaviest of hitters signing on for another three years, it is a strong validation for what the Subiaco-based operation is offering and where it is going.
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