K2fly has inked a five-year deal with the world-class Roy Hill iron ore operation in Western Australia’s Pilbara region for the use of its "ground disturbance” solution.
The agreement marks the second of the company’s two contracts signed with major Pilbara operators for the solution in less than a month, having secured a three-year extension with BHP in June.
Under the latest agreement, which is expected to generate annual recuring revenues of $300,000 and has a total contract value of $2 million, Roy Hill has committed to using K2fly’s ground disturbance solution for its integrated iron ore mining, rail and port operations in the Pilbara for five years.
The independent Roy Hill iron ore operation is the single-biggest ore mine in Australia. It is chaired by Australia’s richest woman Gina Rinehart, who also has local majority ownership, and ships more than 60 million tonnes of iron ore annually and has approvals to move up to 70 million tonnes per year.
K2fly’s solution is a comprehensive approvals and tracking system for ground disturbance works that provides real-time operational updates to keep track of clearance limits, obligations and any breaches.
The mining software provider, which has a current market capitalisation of $18.4 million, offers the only commercial off-the-shelf solution available in the market globally. That is a handy position to be in as mine operators increasingly value the importance of proper resource governance on land and protecting their license to operate.
K2fly says that among the many benefits of the adoption of its suite of products is the significant improvement in critical mine geology processes through automation, resulting in improved short-term scheduling and excavation of the ore body. It is a significant advancement as small improvements in grade recovery or excavation efficiency can deliver additional value to operators of large-scale open-pit mines, such as Roy Hill.
The new agreement with Roy Hill follows an initial contract for the K2fly mine technical assurance suite signed in May, 2021.
K2fly chief executive officer Nic Pollock said: “This agreement firmly establishes K2fly as the leading supplier of Natural Resource Governance Solutions in the Pilbara region of Western Australia. Our Commercial off the Shelf (COTS) Ground Disturbance Solution is unique globally and supports mining companies to protect their license to operate in an increasingly regulated sector of the market.”
Mid-last month, BHP signed on to use the K2fly ground disturbance solution for another three years at the global miner’s Pilbara iron ore operations. That deal has a total contract value of $1.99 million with annual recurring revenue of $664,000 and is an extension from an original one-year deal signed in May last year.
With deals such as these, it is no surprise that K2fly has established itself as the leading supplier of natural resource governance solutions in WA’s Pilbara region.
Is your ASX-listed company doing something interesting? Contact: matt.birney@businessnews.com.au
By Meagan Evans
