Fortescue Inks Deal With AAMC That Could Result in Australia’s First Aboriginal-Owned Iron Ore Mine

Mining Weekly reported that Fortescue Metals (ASX:FMG) has signed a deal with Australian Aboriginal Mining Corporation (AAMC) which could result in the first Aboriginal-owned and operated iron ore mine in Pilbara.
As quoted in the market news:

Under the terms of the agreement, Fortescue would provide AAMC with access to its Pilbara infrastructure, with AAMC able to deliver up to two-million tonnes a year from its Extension and Breakaway iron-ore projects to either Fortescue’s port or rail facilities over a five-year period.
The amount of ore that could be delivered to the rail facilities would be determined by Fortescue after taking into account a range of factors, including prevailing rail volume and potential surplus capacity.
Fortescue could elect to either buy ore directly from AAMC at the point of delivery or to act as an agent and rail, ship, market and sell the iron-ore on behalf of AAMC.
“We’re very pleased to be working with AAMC on this significant deal. Today’s agreement underlines very clearly Fortescue’s commitment to provide meaningful opportunities for Aboriginal business development and to negotiate agreements in good faith for third parties to access rail and port infrastructure on commercial terms,” Fortescue CEO Nev Power said.

Click here to read the full Mining Weekly report.