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05<br />

INSIDE<br />

Danni Bancroft is<br />

the People’s Choice<br />

VTEC Graduates<br />

shine at Thiess<br />

Unlocking Potential<br />

<strong>Fortescue</strong><br />

storms Wall<br />

Street<br />

A close shave for a<br />

good cause


A message<br />

from our<br />

CEO, Nev<br />

Welcome to the latest<br />

issue of Breakthrough.<br />

It’s hard to believe we’re<br />

only four months into the<br />

year given the number of<br />

milestones we’ve already<br />

accomplished.<br />

It’s a big year for all of us as we<br />

power ahead with our expansion to<br />

155 million tonnes a year.<br />

We may be a young company,<br />

but the rapid expansion of our<br />

operations in the Pilbara is one of<br />

the biggest development projects<br />

in the Australian resources sector.<br />

Since the board approved the $US8.4<br />

billion investment in late 2010, the<br />

commitment of all of you to turn<br />

our vision into reality has been<br />

extraordinary.<br />

It isn’t easy, with plenty of challenges<br />

to overcome, including two cyclones<br />

this year. But I’m proud to say that<br />

as construction approaches the half<br />

way mark, T155 remains on budget<br />

and on schedule.<br />

It’s a tremendous effort. But as we<br />

strive to meet many more milestones<br />

this year, let’s not forget the ongoing<br />

commitment of our operations team.<br />

The key to our growth is the world<br />

class infrastructure established<br />

by <strong>Fortescue</strong> in the Pilbara. Our<br />

operations are now producing iron<br />

ore at a rate of around 55 million<br />

tonnes a year, providing us with the<br />

cashflow to help fund an expansion<br />

that will establish <strong>Fortescue</strong> as one of<br />

the world’s major mining companies.<br />

2<br />

The strong performance of our<br />

operations team underpinned<br />

<strong>Fortescue</strong>’s profit for the six months<br />

to December 31 of $US801 million<br />

and enabled the Board to declare a<br />

fully franked interim dividend of 4<br />

cents a share.<br />

Cashflow is a major component of<br />

our funding of T155. But the scale of<br />

the project means we also need to<br />

borrow from overseas debt markets.<br />

I want to take this opportunity<br />

to congratulate the fantastic<br />

performance of our finance team<br />

led by our Chief Financial Officer<br />

Stephen Pearce on their recent $US2<br />

billion bond raising in the US.<br />

Stephen and his team not only<br />

secured us the funds to complete<br />

T155 and acquire related mining<br />

equipment, they provided certainty<br />

for <strong>Fortescue</strong> as we move into the<br />

second half of our expansion.<br />

The positive response Stephen<br />

and his team received in New<br />

York – the offering was five times<br />

oversubscribed - also reflects the<br />

strength of <strong>Fortescue</strong>’s reputation in<br />

financial markets.<br />

As I already mentioned, we’ve<br />

endured two cyclones this year,<br />

Heidi in January and Lua last month.<br />

Fortunately, we emerged from Lua<br />

relatively unscathed, but I would like<br />

to applaud the efforts of everyone<br />

Nev presents VTEC trainee Brian<br />

Enoch with his certificate during<br />

a recent graduation celebration at<br />

the Perth office<br />

involved in preparing our people and<br />

our operations for what could have<br />

been a destructive storm.<br />

As we focus on milestones,<br />

our Indigenous Employee and<br />

Engagement Strategy Committee<br />

has achieved some amazing results<br />

this year. I’m proud to say that at<br />

the end of March, Aboriginal people<br />

comprised more than 10 per cent of<br />

<strong>Fortescue</strong>’s workforce. It’s a number<br />

that is only going to get higher given<br />

the inspiring trainees that continue<br />

to graduate from our VTEC training<br />

programs in Port Hedland and<br />

Roebourne. I attended a graduation<br />

ceremony in Roebourne in late<br />

March and saw the life changing<br />

impact VTEC is having on our new<br />

recruits. It was a fantastic day and<br />

we welcome all of you into the<br />

<strong>Fortescue</strong> family.<br />

I would also like to congratulate<br />

Danni Bancroft for her People’s<br />

Choice award at the recent Chamber<br />

of Minerals and Energy’s Women in<br />

Resources Awards. <strong>Fortescue</strong> people<br />

are clearly kicking goals in all parts of<br />

our organisation.<br />

As I said earlier, we’re only four<br />

months into the year and we’re off<br />

to a flying start. Let’s keep up the<br />

outstanding work as we hit all our<br />

milestones in the months ahead.


<strong>Fortescue</strong> storms<br />

Wall Street<br />

<strong>Fortescue</strong>’s Funding team<br />

launched a US$1bn bond<br />

offer on Tuesday 27th<br />

March. The US, Australian,<br />

Asian and European<br />

markets leapt at the offer,<br />

with orders recieved from<br />

over 300 investors totalling<br />

almost $US5bn.<br />

The overwhelming response<br />

enabled <strong>Fortescue</strong> to double the<br />

initial offering size to US$2bn and<br />

Danni lights the way for<br />

Women in Resources<br />

Congratulations to Danni Bancroft<br />

- the 2012 People’s Choice at the<br />

Chamber of Minerals and Energy’s<br />

Women in Resources Awards in the<br />

category Outstanding Technician/<br />

Operator/Trade Woman.<br />

Danni, or “Bangas” as her work mates<br />

know her, has been with <strong>Fortescue</strong><br />

since late 2008. During a career<br />

spanning 10 years so far she has<br />

been a very strong advocate for<br />

women in mining in many facets of<br />

the WA resources industry.<br />

Danni has set the highest of work<br />

standards for her colleagues. In her<br />

workplace and in the community<br />

Danni’s family values, integrity,<br />

enthusiasm and sheer determination<br />

make her a great role model for<br />

women in mining.<br />

Danni is excited about the impact<br />

the awards could have on our<br />

reduce the interest rate to a very<br />

competitive price. The final offering<br />

was $US1bn of 5 year bonds at<br />

our all time low interest rate of 6%<br />

and US$1bn of 10 year bonds at an<br />

interest rate of 6.875%.<br />

<strong>Fortescue</strong> has now raised US$7bn in<br />

high yield bonds since October 2010,<br />

making us one of the largest issuers<br />

of these types of bonds in the world.<br />

The main purpose of the funds raised<br />

is to fund our US$8.4bn expansion to<br />

155mtpa.<br />

Danni is thrilled to have been<br />

recognised by her peers<br />

industry. “It’s great to see that CME<br />

are recognising the huge input<br />

females are having on the resources<br />

sector. I’m passionate about change<br />

in mining, and accepting more<br />

women in the workplace. We are<br />

proving we are just as capable as<br />

our male counterparts and that we<br />

add balance to a FIFO and general<br />

mining community,” she said.<br />

3<br />

L-R Grace Chan, Heather Wilson, Emma<br />

Harris, Kourtney Dowling and Kelli-Anne<br />

Beattie enjoy a cupcake in Perth<br />

Connecting<br />

women,<br />

inspiring<br />

futures<br />

International Women’s Day has<br />

been recognised since 1910,<br />

two years after the courageous<br />

suffragettes won the right<br />

for women to vote. The day,<br />

which historically was used to<br />

campaign for women’s rights<br />

to work, vote, be trained,<br />

to hold public office and<br />

end discrimination, is now a<br />

reminder - of how far we have<br />

come, and that there are still<br />

things to be done to ensure<br />

women’s equality is gained and<br />

maintained in all aspects of life.<br />

Annually on 8th March,<br />

thousands of events are held<br />

across the globe to celebrate<br />

the achievements of women<br />

and inspire them to continued<br />

success. In the Perth office<br />

we welcomed Linda Dawson,<br />

<strong>Group</strong> Manager Human<br />

Resources as our host for the<br />

Tuesday morning meeting.<br />

In a month where we recognise<br />

Women in Resources via the<br />

CME Awards, we’d like to take<br />

this opportunity to salute the<br />

amazing women who work on<br />

all of our sites.


Turtle<br />

Dreaming<br />

Nick Sexton is thrilled to<br />

have been the highest<br />

bidder in the recent silent<br />

auction for the artwork<br />

Turtle Dreaming (Kuku<br />

Yalanji).<br />

Artist Brad Grogan generously<br />

donated the work, which he worked<br />

on in his spare time, taking about<br />

nine months to complete. The<br />

proceeds of the auction, more than<br />

$2,500, went to the children of Kris<br />

Dixon, a VTEC Services team member<br />

who was tragically killed in Broome<br />

on Christmas Day.<br />

The Sky’s the limit<br />

The competition was intense at the<br />

Red Sky Ride bake-off organised by<br />

the HR team on the 25th of January.<br />

Donations poured in with more than<br />

$300 raised and everyone enjoyed a<br />

sumptuous morning tea in support<br />

of our intrepid Red Sky riders.<br />

Departing from Perth on Sunday,<br />

February 26th, Ann-Louise Sargison,<br />

Payroll Manager and Rob Solomon,<br />

Manager Future State Mining<br />

cycled 1000km for the fifth Red<br />

Sky Ride, spending seven days<br />

journeying through WA’s South West<br />

to raise funds for the Solaris Care<br />

Foundation.<br />

“It has been a hard journey, I really<br />

only started cycling in September,”<br />

Ann-Louise said before the ride.<br />

“One in three people are affected<br />

by cancer and I really appreciate<br />

the support from everyone at<br />

<strong>Fortescue</strong>. This cause means a lot to<br />

me because I lost a family member to<br />

cancer.”<br />

4<br />

Nick and his wife have found<br />

themselves reflecting on the<br />

painting’s place in their lives. “Each<br />

time we look at the painting it<br />

reminds us of the fragility of life.<br />

The tragic circumstances which led<br />

to me being able to purchase the<br />

Ann-Louise, whose sister Peta who<br />

passed away in March 2009, signed<br />

up for the ride as a recreational<br />

cyclist. Her training took in more<br />

than 450km of Perth scenery every<br />

week, mainly in the daunting<br />

territory of the hills as the team<br />

prepared for the epic week long ride.<br />

Rob’s motivation for the ride was<br />

also derived from being personally<br />

affected by cancer. “My paternal<br />

grandfather died at 35 and my<br />

father at 64; my brother and I have<br />

also been diagnosed, but various<br />

maintenance strategies have it under<br />

control. The Red Sky Ride enables<br />

me to support a program which is<br />

significant whilst I do something<br />

I enjoy with some good friends.<br />

The training was tough - heat, hills<br />

and headwinds a true trifecta of<br />

pleasure,” he said.<br />

The Solaris Care Foundation<br />

provides remedial support to<br />

cancer patients and their carers,<br />

Brad Grogan (L) and Nick Sexton.<br />

work should serve to remind us all<br />

of this. Kris’ children will live with<br />

the senseless death of their father<br />

for the rest of their lives. Hopefully<br />

this purchase can be a seed to<br />

ensure that they are catered for in an<br />

appropriate fashion,” he said.<br />

Rob and Anne-Louise were well prepared for<br />

their big ride.<br />

with services ranging from massage<br />

to counselling. The aim of the Red<br />

Sky Ride is to raise funds which<br />

enables the Foundation to increase<br />

their support of cancer patients in<br />

regional areas of Western Australia.<br />

Oh, and in case you’re wondering,<br />

Emily De Piazzi’s spinach and cheese<br />

dip took top honours at the bake-off,<br />

closely followed by Courtney Brown’s<br />

lemon tarts and lemon slices.


A warm<br />

welcome<br />

to our new<br />

Director of<br />

Operations<br />

Jamie Frankcombe joined<br />

<strong>Fortescue</strong> in January,<br />

bringing with him more<br />

than 20 years’ experience<br />

in senior leadership roles in<br />

the mining and resources<br />

sector.<br />

Immediately prior to commencing<br />

with <strong>Fortescue</strong>, Jamie was the Chief<br />

Operating Officer of the coal mining<br />

operation of PT Adaro Indonesia,<br />

overseeing the largest single open<br />

cut coal mine in the southern<br />

hemisphere. He spent seven years<br />

with Xstrata Coal, too, as Executive<br />

New Education<br />

Assistance<br />

Guidelines<br />

Feeling a little stagnant?<br />

Think your grey matter<br />

could use some livening up?<br />

At <strong>Fortescue</strong> we offer all employees<br />

the opportunity for further<br />

education and development so that<br />

you can grow in your career. The<br />

Education Assistance program is a<br />

great way to keep up learning and<br />

reap both personal and academic<br />

rewards.<br />

Covering courses of study such as<br />

Certificate IV, Diplomas, Advanced<br />

Jamie is pleased to be part of the <strong>Fortescue</strong> family<br />

General Manager of the company’s<br />

Americas coal interests and General<br />

Manager of its open cut operations<br />

in New South Wales.<br />

Jamie and his wife Lynda are<br />

enjoying life in Perth, particularly<br />

the lifestyle which they find far more<br />

relaxed than their bustling days in<br />

Jakarta. When questioned about his<br />

<strong>Fortescue</strong> experience so far, Jamie’s<br />

Diplomas, Undergraduate Degrees<br />

and Postgraduate Qualifications<br />

including Masters’, the program has<br />

something for everyone.<br />

For more information please refer to<br />

the Education Assistance Guidelines<br />

on the <strong>Fortescue</strong> People intranet site,<br />

under Forms, Policies, Procedures<br />

and Guidelines.<br />

response was extremely positive. “It’s<br />

fantastic; the role is delivering on<br />

everything I thought I’d get out of<br />

this move. All of the things I was sold<br />

on – engagement, empowerment,<br />

the speed at which we move, the<br />

level of involvement – are proving<br />

to be true. I’m very pleased to have<br />

been given the opportunity to join<br />

such a company,” he said.<br />

5<br />

Fast<br />

Learning<br />

Facts<br />

<strong>Fortescue</strong> will grant up to<br />

5 paid days off in any one<br />

calendar year to attend<br />

lectures, other course<br />

work and exams that occur<br />

during working hours.<br />

You’ll need to pay for the<br />

course or unit up front –<br />

using HECS/HELP has Fringe<br />

Benefits Tax implications.<br />

And you’ll need to study<br />

hard – a satisfactory<br />

level of academic or<br />

course performance and<br />

completion of the course<br />

is required to receive<br />

reimbursement.


Area of earthworks cleared by the<br />

team for the warehouse expansion,<br />

with the Maintenance workshop to the<br />

left and Gulf workshop to the right.<br />

Teamwork<br />

saves millions<br />

The earthworks for the<br />

warehouse expansion at<br />

Cloudbreak were completed<br />

this month, thanks to<br />

various departments on site<br />

rallying to get the job done.<br />

A combined team from Road, Gulf,<br />

Surface Mining and Surveying<br />

worked hard to level the ground,<br />

creating a workable base on which<br />

6<br />

the warehouse can be built. By not<br />

contracting the work, the teams<br />

involved saved <strong>Fortescue</strong> $3.2 million.<br />

The warehouse expansion to the east<br />

of the Gulf workshop was a ‘cut to<br />

fill’ process requiring a combination<br />

of vermeers, surface miners, dozers,<br />

loaders and Gulf trucks to move<br />

material. With the January flooding<br />

of the pits, the team was able to<br />

effectively and efficiently utilise two<br />

extra surface miners over a two week<br />

period, allowing the job to move<br />

along faster.<br />

In all, approximately 69,000m 3 of rock<br />

was cut and just less than 11,000m 3 of<br />

material filled into the Valley to create<br />

an area of nearly 5 hectares.<br />

The utilisation of equipment wasn’t<br />

the only financially viable benefit that<br />

came from the job, but also a high<br />

volume of road base material that<br />

came from the earthworks. The road<br />

base is quite costly and is constantly<br />

needed for the sheeting of roads and<br />

ramps.<br />

“It is great to see all the different<br />

crews working together - the team<br />

turned a vision into reality,” said Mike<br />

Duncan, Road Superintendent.<br />

Wet plant construction<br />

at Cloudbreak.


Christmas Creek convoy brings home the bacon<br />

Heavy rains across the<br />

Pilbara in January cut<br />

off roads to and from<br />

Christmas Creek, halting<br />

transport of vital supplies<br />

including food and steel<br />

and impacting work<br />

continuity.<br />

<strong>Fortescue</strong>’s Christmas Creek Manager<br />

of Construction Shane Byrne and<br />

Acting Site Construction Manager Ian<br />

Wilkinson, together with contracting<br />

company CSI’s Construction Manager<br />

Mick Soltwisch, worked with more<br />

than 30 truck drivers, some of whom<br />

had been held up at Capricorn<br />

Roadhouse just south of Newman<br />

for more than a week, to ensure<br />

deliveries made it through.<br />

Shane was very pleased with the<br />

outcome of the operation.<br />

“Initially the only trucks able to make<br />

it through were those carrying the<br />

steel supplies.<br />

“With food supplies becoming tight<br />

at Christmas Creek, we took a scraper<br />

and some emergency services<br />

vehicles back to some stranded<br />

trucks and got them to site later that<br />

Keeping it in the family<br />

We couldn’t pass up the opportunity to welcome the<br />

latest addition to the <strong>Fortescue</strong> family. Archie James<br />

Spicer arrived on Friday 3rd February, much to the<br />

delight of his parents, Con and Stu, who met on site.<br />

7<br />

The convoy overcame many<br />

obstacles to get to site<br />

day, just in time to deliver bacon<br />

supplies for Friday’s breakfast!<br />

“Our thanks goes out to all the<br />

truckies (most of whom were owner<br />

drivers), FMG Rail Projects, the Rail<br />

infrastructure team, Department of<br />

Main Roads (who were excellent in<br />

their cooperation), the Cloudbreak<br />

operations team, Christmas Creek<br />

operations team, the Camp 195 team<br />

and the CSI site construction team.<br />

“Efforts like this are a great example<br />

of how the extended <strong>Fortescue</strong><br />

family can work together to<br />

overcome challenging situations.”


THUMBS UP! L-R Stefanus Strydom (Worley Parsons), Gerhard Veldsman (GM, Port<br />

Operations), Mark Shirley, (Commissioning and Operational Readiness Manager).<br />

First ore on ship for<br />

<strong>Fortescue</strong>’s third berth<br />

1st February saw the first ore on ship at the newly completed AP3 ,<br />

with a ship on the third berth being loaded by the second shiploader.<br />

Port’s General Manager Gerhard Veldsman was thrilled with the<br />

milestone. “This incredible milestone was a result of the combined<br />

efforts of many dedicated and skilled people. Today is a major<br />

milestone in <strong>Fortescue</strong>’s journey as we continue to achieve stretch<br />

targets and expand production towards our 155mtpa goal,” he said.<br />

8<br />

All eyes on<br />

the target at<br />

Port<br />

Port’s new General Manager<br />

Gerhard Veldsman has<br />

laid out a challenging<br />

program for 2012. A rapidly<br />

expanding workforce will<br />

see many new starters<br />

welcomed to the <strong>Fortescue</strong><br />

family this year.<br />

The Port operations team is preparing<br />

to bring the second outload circuit<br />

into production and our people will<br />

play a key role in enabling us to safely<br />

meet our Q2 production targets.<br />

Port will work closely with Rail, the<br />

mines and Integrated Planning<br />

to maximise the throughput of<br />

the inload circuit and meet Q3<br />

production targets.<br />

A strong focus will be kept on<br />

the move from Targeting 155 to<br />

Being 155 – ensuring the team<br />

maintains their high performance<br />

culture and can-do attitude as the<br />

operations triple in size and the<br />

workforce doubles. The Operational<br />

Improvement team will work with the<br />

Port teams to ensure there are plans<br />

in place to Be 155.<br />

A 5S program has been implemented<br />

as well, to organise workspaces<br />

for efficiency and effectiveness by<br />

identifying and storing the items<br />

used, maintaining the area and items<br />

and sustaining the new order. The<br />

primary phases of 5S are sorting,<br />

straightening, systematic cleaning,<br />

standardizing and sustaining.<br />

Gerhard believes safety will remain a<br />

top priority in 2012. “We will only be<br />

a successful operation when every<br />

person goes home safely and with a<br />

sense of achievement every day,” he<br />

said.


Construction of<br />

<strong>Fortescue</strong>’s second<br />

reclaimer is nearing<br />

completion.<br />

Rail duplication<br />

construction.<br />

9<br />

Herb Elliott Port - third berth<br />

and second shiploader now<br />

fully operational.


Drinking water breakthrough for <strong>Fortescue</strong><br />

Infrastructure Services’<br />

Water Services department<br />

was recently commended<br />

by the WA Department<br />

of Health for successfully<br />

developing and<br />

implementing a Drinking<br />

Water Quality Management<br />

Plan (DWQMP) under the<br />

new Department Of Health<br />

guidelines.<br />

The Water Services Team has worked<br />

over the past year to develop a<br />

master plan that enables <strong>Fortescue</strong>’s<br />

growth plans to marry individual<br />

site modules to the master plan. The<br />

current approved plan encompasses<br />

Cloudbreak with future modules<br />

that include Christmas Creek and<br />

Karntama Village scheduled for<br />

delivery to Department of Health<br />

in early 2012. A generic Rail camp<br />

module wil be rolled out by June<br />

2012 and a Solomon Module by the<br />

end of 2012.<br />

As part of the DWQMP, <strong>Fortescue</strong><br />

provides quarterly compliance<br />

reports on all aspects of water<br />

testing and quality. The first of these<br />

was submitted to the Department of<br />

Health in late 2011 and received the<br />

approval of the Department of<br />

Take the<br />

bite out of<br />

summer<br />

Summer is an active time for insects.<br />

This year, the Health Department<br />

of WA has reported an increase in<br />

the occurrence of mosquito-borne<br />

diseases such as Murray Valley<br />

10<br />

Left to right - Joel Serman (Tradesman) Stephen (Gonzo) Wendt (Supervisor) John Nazarov<br />

(Plumber) Mark Botica (Supervisor) Angela Edwards (Operator) Jason Trewin (Coordinator)<br />

Robyn Lee (Compliance Officer). Absent - William Macdougall (Coordinator) Glen Nielsen<br />

(Tradesman) Tim Heley (Tradesman).<br />

Health’s Senior Policy Officer Brian<br />

Labza. Mr Labza said “I am<br />

extremely pleased with <strong>Fortescue</strong>’s<br />

commitment to the plan and their<br />

reporting processes, and am looking<br />

forward to working with the Water<br />

Services team on the remaining and<br />

future programs.”<br />

In addition to the plan’s acceptance,<br />

Infrastructure Services recently<br />

assigned Robyn Lee to the role of<br />

Compliance Officer, from which<br />

she will champion the plan’s<br />

development and implementation.<br />

Encephalitis, Ross River virus and<br />

Barmah Forest throughout WA.<br />

Here are some simple steps to<br />

prevent bites from mosquitoes and<br />

other insects:<br />

• Avoid outdoor exposure during<br />

dawn and dusk (especially the first<br />

few hours after dark)<br />

• Wear protective (long, loosefitting)<br />

clothing when outdoors<br />

Infrastructure Services Manager<br />

Mark Tazewell stated that the<br />

implementation of the plan was<br />

a culmination and acceptance of<br />

the team’s efforts in conjunction<br />

with consultants Emerson Stewart,<br />

who provided technical resources<br />

for the project. “The DWQMP has<br />

placed <strong>Fortescue</strong> on the front foot<br />

for drinking water management into<br />

the future, and selecting Robyn into<br />

the Compliance role reflects a shift<br />

in the way the team looks to manage<br />

compliance issues,” he said.<br />

• Apply a personal repellent<br />

containing DEET<br />

• Check insect screens are installed<br />

and maintained correctly<br />

If you are on site, please see your<br />

Supervisor to arrange a collection of<br />

personal insect repellent. If you have<br />

any health concerns, please contact<br />

the Medical Administrator to arrange<br />

a medical review.


Profile:<br />

Heath<br />

Nelson<br />

I was born and bred in<br />

Fremantle which of course<br />

makes me a loyal Dockers<br />

supporter!<br />

After attending Hamilton Senior<br />

High School I followed my older my<br />

brother to UWA to study computer<br />

science. Two years in to my degree<br />

I decided to branch out and I<br />

graduated in 1993 with a double<br />

degree in computer science and<br />

economics.<br />

After graduating from uni I took<br />

the obligatory Contiki tour around<br />

Europe and then journeyed to South<br />

Africa, just in time to see Nelson<br />

Mandela elected as president. Cape<br />

Town was incredible and the surf<br />

was up, so I canned plans to work<br />

in the UK and stayed in South Africa<br />

for 6 months, using Cape Town as a<br />

base from which to explore Namibia,<br />

Tanzania and Botswana.<br />

A year had passed by the time I<br />

lobbed back at my folk’s house in<br />

Freo – long haired, unemployed and<br />

broke. They took one look at me and<br />

decided that my free lodging would<br />

come with a time limit; I had to have a<br />

haircut and a job within three months.<br />

Unable to shake the travel bug, I<br />

looked for a job where I would get<br />

paid to travel. I managed to secure<br />

a role with the Aboriginal Economic<br />

Development Office (AEDO). The job<br />

had everything I wanted. I travelled<br />

to remote Aboriginal communities<br />

throughout WA installing point<br />

of sale machines (computerised<br />

cash registers with scanners) in<br />

Community Stores. The challenge<br />

was to install the machines, train<br />

the local Aboriginal people to use<br />

them and employ store managers<br />

that were accountable to AEDO.<br />

Over a two year period, the number<br />

of stores increased from three to 12.<br />

This created another opportunity<br />

as the collective buying power of<br />

these stores was in excess of $20M.<br />

The Office of Aboriginal Economic<br />

Development (OAED – after a change<br />

in State Government) established<br />

a bulk buying cooperative that I<br />

managed for the next two years.<br />

With Aboriginal economic<br />

development gaining strength in the<br />

90’s, I saw an opportunity to relocate<br />

to Broome and manage a regional<br />

office. I found paradise – not with the<br />

town but with the job! My role was to<br />

generate economic opportunities for<br />

Aboriginal people and communities<br />

across the Kimberley. The key to<br />

the role was to ask the Aboriginal<br />

people what they wanted to do.<br />

And it wasn’t a surprise that they<br />

enjoyed doing what they were good<br />

at and interested in. For the next four<br />

years I predominantly developed<br />

businesses that evolved around<br />

regional art centres and tourism<br />

businesses.<br />

An Aboriginal Cross Cultural course<br />

in Perth in 2001 changed my life.<br />

I met my wife Paula and relocated<br />

back to Fremantle. We have two<br />

Heath is passionate about Aboriginal<br />

economic development.<br />

children, Ashlee and Todd. But still no<br />

Docker’s flag!<br />

This was also a time to do something<br />

completely different. I secured a<br />

job with Edith Cowan University<br />

as Director of their International<br />

English Centre. Having experience in<br />

the tertiary sector, I moved to UWA<br />

as Business Manager of the Centre<br />

for Exploration Targeting. After two<br />

years I took on another Centre – the<br />

Centre for Marine Futures and a<br />

year later another role in the Centre<br />

for Petroleum Geoscience CO2<br />

Sequestration. It’s less complicated<br />

than it sounds....<br />

A phone call earlier this year and a<br />

desire to get back into the area of<br />

Aboriginal economic development<br />

brought me to <strong>Fortescue</strong> as the<br />

Principal Aboriginal Advisor. I view<br />

my role as a very simple one.....I<br />

am here to improve the economic<br />

circumstances of Aboriginal people.<br />

So, after a Christmas break with<br />

Paula and the kids at Moore River,<br />

where we taught the kids how to<br />

fish, I’ve launched back into work.<br />

2012 will see total contracts awarded<br />

to aboriginal contractors reach $600k<br />

– the majority to native title groups<br />

– well on the way to achieving $1<br />

billion by the end of 2013.<br />

11


Indigenous Employee and Engagement focus<br />

Last year the <strong>Fortescue</strong> Indigenous Employee and Engagement Strategy commenced,<br />

which kicked off the Committee’s regular meetings to drive Indigenous employment at<br />

<strong>Fortescue</strong>. Since the committee, Chaired by Cloudbreak General Manager Kevin McLean,<br />

was established numerous milestones have been achieved. Here are examples of our<br />

success stories to date:<br />

Aboriginal JV<br />

wins waste<br />

management<br />

contract<br />

In a great step forward for<br />

our Billion Opportunities<br />

program, <strong>Fortescue</strong><br />

recently announced<br />

the awarding of a three<br />

year multi-million dollar<br />

Waste Management<br />

Services contract to PLWA<br />

<strong>Group</strong> (formerly Pilbara<br />

Logistics), an Aboriginal<br />

owned company based in<br />

the Pilbara, and its Joint<br />

Venture Partner ToxFree<br />

Solutions Limited.<br />

The contract includes the<br />

management of all waste generated<br />

from <strong>Fortescue</strong>’s operations,<br />

including the operation and<br />

maintenance of <strong>Fortescue</strong>’s landfill<br />

at Cloudbreak and design, operation<br />

and maintenance of a waste<br />

and recycling transfer station at<br />

Christmas Creek.<br />

PLWA <strong>Group</strong> has provided waste<br />

management and civil and<br />

earthworks services to remote<br />

mining locations for nearly 10 years.<br />

“We are very proud of our history in<br />

the mining sector and very excited<br />

about the success we are having with<br />

our diversified business,” said PLWA<br />

<strong>Group</strong> Chairman Geoff Stocker.<br />

12<br />

Getting ahead<br />

on the Hedland<br />

housing list<br />

For the first time since<br />

Hedland residents started<br />

work at Cloudbreak, the<br />

housing waiting list of<br />

Cloudbreak employees has<br />

been cleared.<br />

Finding adequate housing for all<br />

<strong>Fortescue</strong> employees in Hedland<br />

has always been a challenge.<br />

However, with support from the<br />

<strong>Fortescue</strong> Indigenous Employment<br />

and Engagement committee, the<br />

challenge of having no Cloudbreak<br />

employee on the waiting list was<br />

achieved.<br />

Housing Coordinator Clorinda<br />

Boekhorst said the housing market<br />

in Hedland was tight and as the<br />

business grew so too did the need<br />

for employee housing.<br />

“When we cleared the list for<br />

Cloudbreak, we had to shuffle<br />

people around and make sure we<br />

met our employees’ needs,” she said.<br />

“Some of our employees were also<br />

moving into properties which they<br />

purchased themselves, so fortunately<br />

that freed up more properties as<br />

well.<br />

“Since the list was originally cleared,<br />

names have accumulated and<br />

cleared again. It will continue to be<br />

ongoing, but at the moment we are<br />

able to manage it.”<br />

New Indigenous<br />

Positions in<br />

Perth HR<br />

In support of the business<br />

achieving its Indigenous<br />

employment targets two<br />

new positions have been<br />

created in the Perth Human<br />

Resources team.<br />

A new Manager Aboriginal<br />

Engagement, reporting to the <strong>Group</strong><br />

Manager HR, has been created and<br />

filled - read more about Brendon Ah<br />

Chee on the next page. The focus of<br />

this role is to develop employment,<br />

scholarships, graduate strategies<br />

and programs to ensure we have<br />

sustainable programs in place for<br />

our Indigenous employees. They will<br />

work closely with the Heritage group<br />

and determine how entry points<br />

from VTEC can be maximised.<br />

Reporting to the Manager Aboriginal<br />

Engagement, a new position assigned<br />

to the recruitment of Indigenous<br />

employees has also been created. The<br />

Aboriginal Sourcing Officer will work<br />

closely with the recruitment team<br />

while sitting in the HR’s Indigenous<br />

Employment team. Recruitment for<br />

this position is under way.


Brendon Ah Chee<br />

Providing<br />

Indigenous<br />

Support<br />

<strong>Fortescue</strong> has always<br />

been a leader in creating<br />

opportunities to increase<br />

its Indigenous workforce.<br />

Last financial year, the<br />

Summit 300 target was<br />

not only met, but well<br />

exceeded.<br />

To continue developing<br />

strategies to increase our<br />

Indigenous Employee<br />

numbers a Manager -<br />

Aboriginal Engagement<br />

position has been created<br />

in the HR team and new<br />

employee Brendon<br />

Ah Chee was recently<br />

appointed.<br />

Originally a Derby boy,<br />

Brendon and his family<br />

moved to Perth about<br />

10 years ago to improve<br />

schooling opportunities<br />

for his children. However,<br />

regardless of where he<br />

has resided, Brendon’s<br />

career has always been<br />

around working with and<br />

influencing Aboriginal<br />

people. His resume<br />

boasts positions held in<br />

local councils working in<br />

Aboriginal Environmental<br />

Health, Indigenous<br />

Education through the<br />

Education Department, and<br />

most recently mining and<br />

construction companies in<br />

mentoring roles.<br />

At <strong>Fortescue</strong>, Brendon is<br />

responsible for identifying<br />

programs and pathways for<br />

our Aboriginal workforce’s<br />

career development, and<br />

opportunities for sourcing<br />

funding to support aspects<br />

of these programs.<br />

Working with our Traditional Owners<br />

Brendon said he was<br />

excited about his new<br />

position and looked<br />

forward to the many<br />

challenges that lay ahead.<br />

“I have spent a lot of time<br />

getting to know the people<br />

and the business to fully<br />

understand where the gaps<br />

lie,” he said.<br />

“There is a lot going on<br />

within <strong>Fortescue</strong> when<br />

it comes to Aboriginal<br />

employment attraction<br />

strategies, but I am keen<br />

to start improving our<br />

retention strategies as<br />

there is a lot of opportunity<br />

there to really work<br />

together and provide<br />

a holistic approach to<br />

addressing the issues.”<br />

Brendon has also started<br />

work on preparing a<br />

Cultural Leave Policy for<br />

the company, researching<br />

secondary and tertiary<br />

education scholarships and<br />

cadetships.<br />

<strong>Fortescue</strong> is currently working closely with 99 traditional land owners. It is through these relationships that both parties<br />

are able to develop Native Title agreements under the Native Title Act that allow the company to grow and the owners to<br />

be involved in the future management of their land.<br />

The <strong>Fortescue</strong> Indigenous Employment and Engagement Strategy has highlighted the importance of these relationships<br />

and the need for continual engagement.<br />

13


Thiess trainees Kevin Stevens, Kamarl Daulbin and Travis Mills with <strong>Fortescue</strong>’s Ralph Mogridge<br />

and Dave Peacock from Thiess<br />

VTEC graduates<br />

shine at Thiess<br />

Following the completion of<br />

the Roebourne 10 week VTEC<br />

program late last year, three<br />

trainees were mobilised to<br />

Solomon on 7th February<br />

2012 and have commenced<br />

further plant operator<br />

and safety training with<br />

contracting company Thiess.<br />

Thiess Trainer Dave Peacock<br />

is extremely happy with<br />

the calibre of the trainees<br />

and believes that this latest<br />

group has demonstrated<br />

excellent leadership skills.<br />

He is keen to progress their<br />

14<br />

training to include dump<br />

truck, graders, loaders, rollers<br />

and excavators.<br />

VTEC Development<br />

Superintendent Ralph<br />

Mogridge said, “All trainees<br />

are in very high spirits and<br />

are thoroughly enjoying their<br />

new digs (pardon the pun)<br />

and have been busy meeting<br />

new and old friends in their<br />

spare time.”<br />

Congratulations to the<br />

trainees and the Roebourne<br />

VTEC team.<br />

New<br />

Manager<br />

for VTEC<br />

Grant has hit the ground running<br />

The VTEC crew celebrated<br />

Christmas early last year with<br />

the appointment of their new<br />

manager Grant Bobongie in<br />

early December.<br />

Grant joins VTEC from Downer<br />

EDI where he was employed as<br />

the National Manager based<br />

in Perth. He worked on a joint<br />

initiative with VTEC placing<br />

trainees from Fitzroy Crossing<br />

at Christmas Creek.<br />

Although originally from<br />

Queensland, Grant has spent<br />

the majority of his life in<br />

Western Australia and most<br />

of his career working with<br />

Indigenous people in the<br />

resources sector.<br />

“Grant’s appointment signals<br />

the start of an exciting time<br />

for the company as he will<br />

help develop and expand<br />

Indigenous pre-employment<br />

training programs in the<br />

Pilbara,” said <strong>Group</strong> Manager<br />

Land Access Alexa Morcombe.


From vision to reality<br />

<strong>Fortescue</strong> signed a $3 million contract with Nyiyaparli Engineering<br />

Mine & Maintenance Pty <strong>Ltd</strong> (NEMM) in March 2012 for the Hire of<br />

Heavy Mobile Equipment at Cloudbreak Mine.<br />

$1 billion in contracts to be<br />

awarded to Aboriginal contractors by<br />

the end of 2013.<br />

For more information contact Heath Nelson<br />

hnelson@fmgl.com.au<br />

15<br />

December 2013<br />

$350m<br />

Mar 2012<br />

Contracts Awarded


A close shave,<br />

for a good<br />

cause<br />

Every year the <strong>Fortescue</strong><br />

family throws its<br />

considerable fundraising<br />

abilities behind the<br />

Leukaemia Foundation<br />

by raising funds for the<br />

World’s Greatest Shave, via<br />

the Mining Challenge.<br />

This year was no exception, with<br />

events at our sites proving once<br />

again that we’re a giving group of<br />

people with deep pockets.<br />

Events at Port Hedland had to be<br />

postponed because of Cyclone<br />

Lua, but ultimately went ahead.<br />

Fundraisers across all of our sites<br />

ranged from BBQ’s and quiz nights<br />

to chest waxing, with support for the<br />

Leukaemia Foundation eclipsing all<br />

of our past efforts.<br />

Several <strong>Fortescue</strong> family members<br />

took up the challenge for 2012,<br />

collectively raising over $80,000 for<br />

the Foundation.<br />

Cloudbreak mining operator Carina<br />

Skipworth and Perth’s Peter Thomas<br />

raised more than $25,000 each<br />

through various events.<br />

Several Perth based team members<br />

gave up their locks as well. Crispin<br />

Harris from IT, Matt Sinclair from<br />

Purchasing, Jonathan Davies from<br />

Environment, Clint Hounsham from<br />

Planning, Colin Dowson from Safety<br />

all agreed to a quick clip from Alana<br />

Kongras.<br />

A very special mention has to go<br />

to Damien Grainger from Morris at<br />

Castle Camp who agreed to have his<br />

chest and arms waxed after $2,700<br />

was raised in just four days. Based<br />

on the images, it looks like Damien’s<br />

pain was shared by his colleagues.<br />

17


Site<br />

Travel<br />

New World of Work<br />

With desk space at the <strong>Fortescue</strong> Centre now at a premium,<br />

<strong>Fortescue</strong>’s New World of Work will become an integral part of our<br />

day to day operations. We’ll keep you posted on the progress of this<br />

exciting project.<br />

Find out more: http://intranet/nwow<br />

18<br />

Flexibility<br />

Office<br />

Home


IT Service<br />

Desk -<br />

working<br />

around the<br />

clock<br />

Your Perth IT Service Desk has<br />

recently moved to a new 4 day on,<br />

4 day off, 24 hour roster. Working<br />

twelve hour shifts, the team are now<br />

providing 7 day a week support to all<br />

of you, wherever you are working for<br />

<strong>Fortescue</strong>.<br />

The change in roster meant there<br />

were fewer people on duty during<br />

the day and the change has created<br />

an initial backlog. Service Desk<br />

Lead Stephen Watts is confident the<br />

backlog won’t last long, “We initially<br />

started with our 6 team roster and<br />

soon identified that we needed more<br />

people on the desk during the day.”<br />

“Recruitment was expedited and we<br />

will soon be working with our 8 team<br />

roster,” he said.<br />

The team receives more than<br />

400 calls and emails every day, in<br />

addition to ‘walk-ups’, or people<br />

who approach the desk. They are<br />

investigating several new processes<br />

to enhance their service – we’ll keep<br />

you posted on new developments.<br />

In the meantime, check out these<br />

Handy IT Hints.<br />

If you’ve requested new software to<br />

be installed, please log out, but leave<br />

your PC turned on when you leave<br />

for the day. Software installations are<br />

now done overnight.<br />

Hardware deployments are also<br />

processed overnight, so the right<br />

desk number on your request form is<br />

extremely important.<br />

Chasing up a request? It’s best<br />

to give the Service Desk a call on<br />

8877 - with several hundred emails<br />

being received every day, duplicate<br />

requests are inefficient.<br />

Perth’s Level<br />

3 – Open for<br />

Business<br />

The offices on Level 3 at<br />

the Hyatt Centre are now<br />

fully operational. The 560<br />

desks are already reserved<br />

or occupied, according to<br />

Perth’s office management<br />

team. The floor also boasts<br />

eight kitchens, touchdown<br />

pods, 30 meeting rooms<br />

and many happy residents.<br />

Level 3 houses teams such<br />

as Engineering & Reliability,<br />

Environment, Exploration,<br />

Engineering, Evaluation Studies<br />

and Business Development, GIS<br />

Land Heritage, Resource Strategy,<br />

Strategic Planning and Solomon.<br />

On 29 March the new staircase<br />

between Levels 2 and 3 was unveiled<br />

at a special Thursday morning<br />

meeting and dubbed the ‘Change<br />

the World Stairs’. The staircase is<br />

already proving popular, with many<br />

of the <strong>Fortescue</strong> family popping<br />

between floors to consult with<br />

colleagues.<br />

The opening between the floors will<br />

connect our workforce and reinstate a<br />

transparency and flow of information<br />

between our various teams.<br />

Flying the<br />

flag for<br />

<strong>Fortescue</strong> on<br />

Australia Day<br />

First place in the inaugural<br />

Tom Price Pool Boat<br />

Regatta was taken out<br />

by a team from Solomon<br />

on Australia Day. The<br />

<strong>Fortescue</strong> team donated<br />

the $200 prize money back<br />

to the organisers for redistribution<br />

amongst the<br />

other entrants.<br />

Emily Wells, Andrew Cook, and<br />

Keighley and Hayley Bremner won<br />

a tight race in a boat made of duct<br />

tape, inner tubes, PVC pipe and a<br />

temporary bund. “The pressure was<br />

on us from the beginning after we<br />

were deemed race favourites but we<br />

pulled through with a very narrow<br />

victory,” said Keighley. “We would like<br />

to thank the community of Tom Price<br />

for putting on such a good day and<br />

we look forward to defending our<br />

title at next year’s event.”<br />

<strong>Fortescue</strong>’s Community<br />

Superintendent Scott Hansen said,<br />

“Australia Day in Tom Price was a real<br />

community day, driven by Ashburton<br />

Shire, with much help from the<br />

Defence’s Pilbara Regiment, the Tom<br />

Price Police and lots of volunteers.<br />

We are part of the community<br />

here now, so it’s important to get<br />

involved in these events. Thanks to<br />

the Solomon crew for taking up the<br />

opportunity.”<br />

A special mention to Jerome Paddon<br />

and Solomon Grade Control team for<br />

building the boat, and to the other<br />

<strong>Fortescue</strong> people who supported the<br />

effort: Braam Weber, Michael Clark,<br />

Carrie Ward and Clint Hare.<br />

19


The Rowley<br />

Foundation<br />

Scholarship<br />

The University of Western<br />

Australia is WA offering a<br />

generous new scholarship<br />

for an Indigenous student<br />

studying anthropology and<br />

sociology.<br />

Have you got a good<br />

news story, has your<br />

team achieved a<br />

significant milestone<br />

or do you have an<br />

example of the<br />

<strong>Fortescue</strong> values in our<br />

workplace?<br />

Send your story<br />

to <strong>Fortescue</strong><br />

Communications:<br />

E: communications@<br />

fmgl.com.au<br />

www.fmgl.com.au<br />

2<br />

The scholarship, to be known as the<br />

Rowley Foundation Scholarship in<br />

Cultural Studies, will enable a highachieving<br />

Indigenous student to<br />

undertake a Bachelor of Arts degree<br />

at UWA majoring in Anthropology<br />

and Sociology.<br />

Home-made<br />

infrastructure<br />

It’s great to know that<br />

we can source essential<br />

infrastructure without<br />

leaving home.<br />

Some large pieces of kit bound for<br />

Solomon have been constructed<br />

right here in WA or sourced from<br />

within Australia – a great boost to<br />

the local economy.<br />

Graeme Rowley is one of <strong>Fortescue</strong>’s<br />

founding Directors. He and his<br />

family are excited to contribute to<br />

the advancement of WA’s young<br />

Indigenous community. “We want to<br />

ensure that our State’s rich history of<br />

Indigenous culture is acknowledged,<br />

applauded and valued by future<br />

generations of both Indigenous and<br />

non-Indigenous members of our<br />

modern society. This scholarship will<br />

help to develop young Indigenous<br />

champions who will provide valuable<br />

ongoing contributions to the<br />

community,” he said.<br />

Local companies such as RCR, Aussie<br />

Modular Solutions, Vinidex, Mcnally,<br />

Fenner Dunlop, Delkor, Wilson,<br />

Schenck and Nepean are providing<br />

products such as apron and belt<br />

feeders, dongas, piping, switch<br />

rooms, transformers and conveyor<br />

belts for Solomon.<br />

In addition to the Solomon<br />

equipment, on 5th March four new<br />

train unloader cells will leave AGC’s<br />

facility at Henderson Wharf, bound<br />

for the Port expansion project in Port<br />

Hedland after being constructed in<br />

Henderson by Metso.

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