Fortescue Metals Group has awarded its single largest contract to an Aboriginal business, after confirming a five-year maintenance contract with Warrikal.
Fortescue Metals Group has awarded its single largest contract to an Aboriginal business, after confirming a five-year maintenance contract with Warrikal.
Perth-based Warrikal has been contracted to provide maintenance and shutdown services across Fortescue’s Pilbara operations.
The five-year contract, valued at $350 million, followed a competitive tender process.
Warrikal has been gearing up for the contract over several months and now has close to 700 staff.
This is reflected in Warrikal’s ranking as the largest indigenous business in Western Australia, according to Business News’ Data & Insights.
Warrikal was founded by Koori businesswoman Amanda Healy and business partners Roy Messer and David Flett in 2017.
It has been providing mechanical maintenance, shutdown and project services across Fortescue’s sites over the past three years.
The contract reinforces Fortescue's status as the largest private sector supporter of Aboriginal businesses in WA.
Business News reported last month that Fortescue spent $354 million with 63 Aboriginal businesses in 2020, well ahead of Rio Tinto ($218 million) and BHP ($67 million).
Fortescue chief executive Elizabeth Gaines said the iron ore miner was committed to supporting sustainable long-term opportunities for Aboriginal businesses.
“Procurement is one of the most powerful levers for social and economic change, and from experience we know that a strong Aboriginal business sector is best placed to create employment and development opportunities for their communities,” she said.
“I am pleased to announce this significant contract with Warrikal, the largest to be awarded by Fortescue and also among the biggest contracts to be awarded in Australia to a majority owned Aboriginal business.”
Ms Healy said the contract built on Warrikal’s relationship with Fortescue.
“We look forward to further developing our relationship over coming years, continuing to grow our operational footprint in the north-west of WA and strengthening our long-term commitment to the region and the communities in which we operate,” she said.
Ms Healy emphasised the contract was a testament to Warrikal’s personnel and their reputation for delivering innovative engineering solutions while maintaining a high standard of safety and quality.
