Fortescue Metals Group announced on September 14 that it has entered into a commercial agreement with Australian Aboriginal Mining Corp. (AAMC) that will enable the establishment of Australia’s first Aboriginal-owned and operated iron ore mine. Under the agreement, Fortescue will provide AAMC with access to Fortescue infrastructure, with AAMC able to deliver up to 2 million mt/y from its projects to either Fortescue’s port or rail facilities over a five-year period.
Fortescue CEO Nev Power and AAMC Chairman Daniel Tucker participated in an agreement-signing ceremony held in the Fortescue Centre in Perth. The Sydney Morning Herald newspaper reported that Tucker said he plans to develop the project once market conditions in the battered iron ore sector improve but that the project would make a “modest margin” even at present iron ore prices of about $59/mt.
