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Indigenous Business SPECIAL REPORT - businessnews.com.au
Indigenous
              Business
              SPECIAL REPORT

Photo by Manny Moreno on Unsplash

                                    businessnews.com.au
Indigenous Business SPECIAL REPORT - businessnews.com.au
FEATURE
                                                                                                                               INDIGENOUS BUSINESS

                                                                                                                          “     Procurement is
                                                                                                                          a powerful tool for
                                                                                                                          social and economic
                                                                                                                          change - Elizabeth Gaines

                                                                                                                          Brindabella Resources director
                                                                                                                          Elsa Derschow (left) with
                                                                                                                          Elizabeth Gaines and Stephen
                                                                                                                          Dawson at Fortescue’s
                                                                                                                          Cloudbreak mine

Miners lead on indigenous spend
Mining is the largest supporter of indigenous businesses, but the
contribution of big miners is highly variable.

                                  THE Aboriginal business sector is large       University of Melbourne head                 Government members accounted for
                                  and growing much faster than the rest      of indigenous business research              $340 million, with half of this from the
                                  of the economy, two reports released       Michelle Evans said the research was         Department of Defence.
                                  this year have found.                      unprecedented.                                  Corporate members accounted for a
                                     Supply Nation, which runs an               “It shows us that indigenous              much larger $617 million, with nearly
                                  accreditation scheme for Aboriginal        businesses bring not just significant        half this ($296 million) coming from
                                  businesses, has 2,335 suppliers on its     economic impact, but far more,” she said.    mining companies.
Mark Beyer                        national directory.                           The university study found                   The next largest sector was
mark.beyer@businessnews.com.au       Its State of Indigenous Business        Aboriginal businesses were larger,           construction ($203 million), which
                                  report found these businesses have         employed more people, and paid higher        likely includes work on mining and
                                  annual revenue of $3.9 billion and more    wages than non-indigenous businesses,        roads projects.
                                  than 30,000 employees.                     largely because of a lack of sole traders.
                                     It also found rapid growth in revenue      “On top of that, the sector is growing    Miner ratings
                                  by Aboriginal businesses.                  more quickly,” it concluded.                    The big iron ore miners in the
                                     “Between 2011 and 2017, Supply             The University of Melbourne study         Pilbara are widely recognised as
                                  Nation suppliers grew at 13 per cent per   found that Aboriginal businesses             leaders when it comes to procurement
                                  annum compared to business growth of       were weighted towards regional areas,        from Aboriginal businesses.
                                  3 per cent per annum for the economy       particularly northern Western Australia         However, data obtained by Business
                                  as a whole,” the report concluded.         and the Northern Territory, where they       News shows an extremely wide
                                     A study by the University of            primarily service the mining, tourism        variation in their spend in WA.
                                  Melbourne, which drew on data from         and health sectors.                             Rio Tinto, which is the biggest
                                  Supply Nation and several other               Supply Nation’s report reached            miner in the Pilbara, said that
                                  sources, found the Aboriginal business     similar conclusions, finding that            last year it engaged 57 indigenous
                                  sector was even larger.                    mining was by far the biggest                businesses with $218 million in
                                     It estimated there were 3,619           contributor.                                 expenditure.
                                  indigenous businesses across Australia,       This was based on spending by                Its competitor, BHP, has reported
                                  about double the number in 2006.           Supply Nation members with Supply            much lower spending.
                                     These businesses have annual            Nation suppliers.                               BHP’s WA iron ore business spent
                                  revenue of $4.9 billion and employ            The total amount spent in 2019 was        $67 million with 43 Aboriginal
                                  more than 45,000 people.                   $952 million.                                businesses in the year to June 2020.

34 | Business News May 31, 2021
Indigenous Business SPECIAL REPORT - businessnews.com.au
FEATURE
INDIGENOUS BUSINESS
   In the current financial year, it has
spent a similar amount, $66 million,
so far.                                            Spending with Aboriginal businesses in 2020
   On top of this, BHP is a big funder
of an indigenous ranger program in                  Fortescue Metals Group                 $354m       with 63 businesses
the Pilbara. It spent $14 million on this                         Rio Tinto                $218m       with 57 businesses
program last year, employing 385 Martu
rangers.                                                 BHP – WA Iron Ore                  $67m       with 43 businesses
   At the other end of the scale,                  Source: Company reports, BN research
Fortescue Metals Group spent $354
million with 63 Aboriginal businesses
and joint ventures in FY20.
   This was part of its Billion
Opportunities program, which has
awarded $3 billion in contracts to
130 Aboriginal businesses and joint
ventures during the past decade.
   Fortescue’s focus on Aboriginal
contracting reflects the philosophy
of its founder and chairman, Andrew
Forrest, who advocates ‘a hand up, not
a handout’.
   The flipside of this philosophy is that
Fortescue has in some cases resisted
the payment of royalties to native title
holders.
   Fortescue chief executive Elizabeth
Gaines reflected this philosophy when
she said strong, sustainable Aboriginal
businesses created employment and
development opportunities.                   under Billion Opportunities were to            Commercial focus                                “We restructured our procurement
   “Procurement is a powerful tool           majority owned Aboriginal businesses.                                                        policies and practices to ensure that
                                                                                               Ms Gaines said Fortescue approached
for social and economic change,” Ms             Joint ventures also form a critical part                                                  our contractors also adopted our
                                                                                            Aboriginal contracting in a commercial
Gaines said.                                 of Fortescue’s program.                                                                      level of commitment to Aboriginal
                                                                                            manner.
                                                They provide the opportunity for                                                          engagement.”
Comparisons                                  Aboriginal businesses to partner with
                                                                                               “These contracts are not handouts,
                                                                                                                                            Other steps taken by Fortescue
                                                                                            they are real contracts with real
   The wide variation between the big        established contractors to help build                                                        include 14-day payment terms to
                                                                                            deliverables,” she said.
iron ore miners begs the question of         their capabilities, before securing                                                          improve operational cash flow and a
                                                                                               Ms Gaines added that Fortescue helped
whether the data is like-for-like.           contracts on their own.                                                                      $50 million leasing facility with ANZ
   BHP, for instance, says only                 When asked about joint ventures,            some Aboriginal contractors along the way.    Bank.
businesses that are owned 50 per             Fortescue acknowledged not all its                “We have people who are dedicated            Fortescue has provided guarantees
cent or more by Aboriginal people are        contracting partners were Supply               to working with our Aboriginal                for $25 million worth of loans under
included in its statistics.                  Nation suppliers.                              business partners, to helping them            this facility.
   It also highlights its engagement with       That helps to explain why the               develop business plans,” she said.              It was used recently by Brindabella
traditional owner businesses.                reported spending by the big three iron           “Some of these contracts might start       Resources, a plant hire business
   By value, half its annual spending is     ore miners in WA ($639 million) greatly        off very small; it might be one piece of      established by five traditional owner
with traditional owner businesses, and       exceeds Supply Nation’s data on total          equipment undertaking some work.              women.
by number, two thirds are traditional        spending by mining companies across               “But we have then worked with those          Mr Forrest has used his philanthropic
owner businesses.                            Australia ($296 million).                      businesses to help them grow.”                Minderoo Foundation to also support
   Fortescue quotes similar statistics.         (Rio Tinto has not provided a                  Ms Gaines said Fortescue expected its      Aboriginal businesses.
During the past three years, more than       detailed breakdown of its Aboriginal           contractors to also support Aboriginal
50 per cent of contracts it has awarded      contracting.)                                  partners.                                                      Continued on page 36

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                                                                                                                                                       May 31, 2021 Business News | 35
Indigenous Business SPECIAL REPORT - businessnews.com.au
FEATURE
                                                                                                                                           INDIGENOUS BUSINESS
From page 35                                                                                                                            Mr Milsom said corporate partners
                                                                                                                                     had been very supportive: Development
   Last year, it hosted Australia’s                                                                                                  WA provided the Subiaco premises,
first indigenous angel investor and                                                                                                  CBRE planned to provide office space in
entrepreneur masterclass program.                                                                                                    QV1, and Deloitte had provided pro bono
   Twenty indigenous entrepreneurs                                                                                                   support to install a CRM system supplied
and potential angel investors                                                                                                        by Salesforce.
participated, and Minderoo is looking                                                                                                   “Our corporate partners don’t want to
to take the program national.                                                                                                        join us just to be a member, they actually
   BHP and Rio also have programs to                                                                                                 want to join us to do some good,” he said.
support Aboriginal businesses.                                                                                                          Mr Milsom said he would like to
   BHP’s local buying program offers                                                                                                 replicate the hub in other areas, such
an entry point for smaller Aboriginal                                                                                                as Midland, Joondalup, East Perth and
businesses and traditional owner                                                                                                     possibly Fremantle.
businesses by allowing a simpler                                                                                                        The chamber’s regular programs
engagement with the company.                                                                                                         include a two-week on-boarding course
   In addition, the two big miners                                                                                                   for indigenous job seekers.
provide support through regional                                                                                                        “That has proved really popular and
chambers of commerce in the Pilbara.                                                                                                 very successful,” Mr Milsom said.
   Rio’s grow local program, for                                                                                                        Chamber president Gordon Cole said
instance, engages businesses through                                                                                                 its activities were linked to the Noongar
a series of workshops and events in                                                                                                  cultural philosophy of commerce and
Karratha, Tom Price and Newman.                                                                                                      trade.
   A BHP spokesperson said the                                                                                                          “The colonial process took it away,”
company was aiming to substantially                                                                                                  he said.
lift its national spending.                                                                                                             “It’s like we are reclaiming our
   “BHP is committed to creating                                                                                                     commerce and trade on country.
                                               Tim Milsom with Codee Cleaning’s Jennifer Vo at the Noongar Chamber
opportunities for indigenous                   of Commerce’s Subiaco business hub. Photo: David Henry                                   “We work from that philosophy.”
businesses and over recent years we                                                                                                     Mr Cole said the chamber was
have increased our spend significantly,                                                                                              regularly approached by both young
with more than $800 million spend                                                                                                    people and elders wanting to set up a
estimated in the next five years,” they          “In terms of encouraging Aboriginal          Carey is arguably Australia’s oldest   business.
said.                                         business growth through procurement,         and most resilient Aboriginal business.      “It’s giving people the belief they can
   “We continue to improve and                we are on the same page as Fortescue            However, it has been overtaken as      actually do it,” he said.
simplify our processes so it’s easier to      and I want to commend the company’s          the state’s largest Aboriginal business      “Having business role models is
do business with us.”                         inspiring leadership in this space,” Mr      by another mining services contractor,    crucial.”
   Fortescue is also aiming for more: it      Dawson said.                                 according to Business News’s Data &          Indigenous construction company
plans to award $1 billion of contracts           “We were so impressed by the              Insights.                                 Marawar is keen to lift the profile and
to Aboriginal businesses and joint            national policy we committed to                 Warrikal chief executive and major     performance of the Aboriginal business
ventures through its green energy             implement a similar scheme in our            owner Amanda Healy said her business      sector.
program by 2030.                              state.”                                      had about 650 staff, double the number       Established in 2018, the company has

3,619
                                                 WA’s Aboriginal procurement policy        it had a year ago.                        a 55 per cent Aboriginal workforce and
                                              (APP) has awarded $339 million in               Main Roads Western Australia was a     claims 90 per cent staff retention.
                                              contracts in its first two years.            big supporter of Aboriginal businesses.      Noongar traditional owner and
                                                 It exceeded its 2 per cent target last       It awarded more than 10 contracts      director Gerry Matera said the role of
                                              year, with 5.5 per cent of contracts         to each of H&M Tracey Construction,       Aboriginal engagement manager was
                                              awarded to Aboriginal businesses.            GBSC Yurra and Kardan Construction.       at the heart of the company’s business
                                                 The largest recipients included                                                     framework. At Marawar, it was a role
INDIGENOUS                                    registered Aboriginal corporations that      South West focus                          assumed by Aboriginal woman Carmel
BUSINESSES IN                                 hold native title in parts of WA.               The Aboriginal business sector         Smithson.
AUSTRALIA                                        They were led by Pilbara Meta Maya
                                              Regional Aboriginal Corporation,
                                                                                           in the South West does not have
                                                                                           big operators like the Pilbara and
                                                                                                                                        “We invest heavily in our people,
                                                                                                                                     which means addressing individual
            Source: University of Melbourne
                                              which was awarded $40 million worth          Kimberley.                                challenges at great depth, whether that’s
                                              of contracts by the Department of               Nonetheless, it is substantial,        ensuring they have petrol for their car,
Government support                            Communities.                                 judging by the Noongar Chamber of         support for their family or a sense of self
   The sector has received a big boost           It is one of WA’s largest Aboriginal      Commerce, which has 420 members           and community,” Mr Matera said.
from state and national programs              corporations, with annual revenue of         and 14 corporate partners.                   “Most of these young kids are just
that mandate a minimum proportion             $18 million and 80 staff (see list).            “We’re going from strength to          surviving and their main concerns are
of contracts must go to Aboriginal               It employs 21 Aboriginal people,          strength,” chief executive Tim Milsom     things that others take for granted, such
businesses.                                   including board members.                     said.                                     as mobile phone credit, bus money and
   The federal government’s indigenous           That is a relatively low proportion for      “We have a fully tenanted hub in       how they are going to get to work.”
procurement policy (IPP) has awarded          an Aboriginal business.                      Subiaco, with 10 Aboriginal businesses       He said Marawar’s engagement
$3.5 billion worth of contracts to 2,000         On average, one third of employees        working from that space.                  model sought to blur the lines between
businesses since it was implemented           are Aboriginal, according to Supply             “We filled it very quickly and we      commercial operation and social
in 2015.                                      Nation data.                                 have a waiting list.”                     enterprise.
   Speaking at Fortescue’s Cloudbreak            The state government’s APP also              The major tenants in the subsidised       It has combined that approach with
mine last month, Aboriginal                   helped private Aboriginal businesses,        space include Spartan First, led by       work on several large projects, including
Affairs Minister Stephen Dawson               including Daniel Tucker’s Carey              former AFL footballer Des Headland,       Bunnings in Albany, Match apartments
enthusiastically acknowledged Andrew          Mining, which won a $20 million road         Codee Cleaning, and Aboriginal grower     in Fremantle, and Armadale Emergency
Forrest’s role in pushing for the IPP.        construction contract.                       group Noongar Land Enterprise.            Health Service.

36 | Business News May 31, 2021
Indigenous Business SPECIAL REPORT - businessnews.com.au
Data & Insights                                        WA’S LARGEST INDIGENOUS CORPORATIONS
                                                       Ranked by total revenue, most recent year. Balance Date: 30 June 2020

       Change

                                                                                    Year Total            Total             Total
Rank

                                                                                   est. in staff        Revenue -         Assets -
                Company name                 Senior executive and title             WA in WA            this year         this year     Core function

                Kimberley Aboriginal          Ms Lorraine Anderson                                     a) $38.7m        a) $40.6m Provide and promote indigenous health improvement to the Kimberley region.
  1            Medical Services              Medical director                      1986      205      b) $33.8m        b) $34.9m
                                                                                                                                       Heritage ethnographic survey and archaeological survey work for mining and
                Karlka Nyiyaparli             Mr Nick Preece                                           a) $35.7m        a) $29.3m exploration companies in the Pilbara. Act as the Local Aboriginal Corporation
 2                                                                                 2001        8
                Aboriginal Corporation        Chief executive                                          b) $35.9m        b) $26.4m pursuant to the Indigenous Land Use Agreements with BHP Billiton Iron Ore…
                Wirlu-murra                                                                                                       Actively participate in building capacity and capability across its operations and
                Yindjibarndi Aboriginal Ms Allery Sandy                                                a) $29.6m        a) $21.8m
 3                                                                                 2010      160                                 Corporation by delivering mining support services across various projects for the
                                        Chair                                                          b) $23.1m        b) $15.9m
                Corporation                                                                                                       betterment of the Yindjibarndi Community.
                                                                                                                                  The peak Indigenous body in the Kimberley region working with Aboriginal people
                Kimberley Land Council Mr Wayne Bergmann                                               a) $25.6m        a) $28.5m to secure native title recognition, conduct conservation and land management
 4                                                                                 1978      103
                                       A/Chief executive                                               b) $24.0m        b) $25.3m activities and develop cultural business enterprises.
                                                                                                                                  Nirrumbuk Aboriginal Corporation (NAC) is a Broome-based community driven
                Nirrumbuk Aboriginal          Mr Joe Grande                                            a) $25.6m        a) $19.6m by Aboriginal membership predominantly derived from the Dampier Peninsular
 5                                                                                 1993      192
                Corporation                   Chief executive                                          b) $19.6m        b) $14.7m Region, North of Broome. The Corporation provides environmental health services…
                                                                                                                                  The Corporation is a not-for-profit organisation that operates a range of programs
                Marra Worra Worra             Ms Denise Andrews                                        a) $24.1m        a) $72.1m and services for the residents of Fitzroy Crossing and the surrounding valley in the
 6                                                                                 1981      138
                Aboriginal Corporation        Chair                                                    b) $24.2m        b) $69.8m Kimberley Region of Western Australia.
                                                                                                                                  The Corporation was set up in 2017. It's purpose is to provide culturally secure and
                Wungening Aboriginal          Mr Daniel Morrison                                       a) $22.7m        a) $19.1m holistic programs and strategies that inform, educate and address the harmful
 7                                                                                 1989      189
                Corporation                   Chief executive                                          b) $20.2m        b) $18.5m effects of alcohol, drugs and other substances on individuals…
                                                                                                                                  Yamatji Marlpa Aboriginal Corporation (YMAC) is the Native Title Representative
                Yamatji Marlpa                Mr Simon Hawkins                                         a) $22.0m        a) $18.9m Body for the Traditional Owners of the Pilbara, Midwest, Murchison, and Gascoyne
 8                                                                                 1994      102
                Aboriginal Corporation        Chief executive                                          b) $23.6m        b) $14.5m regions of Western Australia.
                                                                                                                                  Principal organisation of governance in the Ngaanyatjarra Lands. The principal
                                              Mr Gerard Coffey                                         a) $19.5m        a) $13.1m activities of the Corporation is to provide support for the development of its
 9             Ngaanyatjarra Council                                               1981      138
                                              Chief executive                                          b) $20.8m        b) $11.3m members (in regard to health, education, housing, land and culture, law and…
                Pilbara Meta Maya                                                                                                 Provision of services planned and unplanned maintenance, (water, power and
                                              Ms Rachael Christensen                                   a) $18.0m        a) $16.3m waste water) to 29 Aboriginal communities within the Pilbara, Gascoyne &
 10            Regional Aboriginal                                                 1994       72
                                              Chief executive                                          b) $23.4m        b) $17.2m Murchison regions….
                Corporation
                Puntukurnu Aboriginal         Mr Robby Chibawe                                         a) $17.1m        a) $28.1m Provision of primary health care services and associated health programs to the
 11                                                                                2009       37
                Medical Service               Chief executive                                          b) $15.9m        b) $21.8m Indigenous communities of Punmu, Parngurr, Kunawarritji and Jigalong.

                Derbarl Yerrigan Health Ms Tracey Brand                                                a) $16.4m        a) $8.9m       Provides culturally secure primary health, mental health and dental services for
 12                                                                                1974       101
                Service                 Chief executive                                                b) $16.2m        b) $6.4m       Aboriginal families living right across the Perth metropolitan area.
                                                                                                                                       Gumala is Australia's second largest Indigenous organisation, serving the
                Gumala Aboriginal             Mr Justin Dhu                                            a) $15.8m        a) $5.3m
 13                                                                                1996                                               Banyjima, Innawonga and Nyiyaparli people of the Pilbara region in Western
                Corporation                   Executive Officer                                        b) $10.7m        b) $4.5m       Australia….
                                                                                                                                       The Ashburton Aboriginal Corporation (AAC) was formed in 2000 to promote the
                Ashburton Aboriginal          Mr Steven Sonneman-Smith 2000                            a) $13.7m        a) $12.7m
 14                                                                                           72                                      interests of all Aboriginal and Torres Strait Island peiople in the Shire of Ashburton.
                Corporation                   Chief executive                                          b) $13.7m        b) $13.5m      The AAC delivers a wide range of services to job seekers, indigenous communities…
                                                                                                                                       To provide corporate support and governance and training of community members
                Winun Ngari Aboriginal Ms Susan Murphy                                                 a) $13.5m        a) $10.0m
 15                                                                                1983       67                                      in the Kimberley Regional Communities, to help build sustainable, prosperous
                Corporation            Chief executive                                                 b) $10.1m        b) $8.3m       communities in which the community members can create and take up social…
                                                                                                                                       Ngarliyarndu Bindirri Aboriginal Corporation is Roebournes oldest and highly
                Ngarliyarndu Bindirri         Mr Francois Langlois                                     a) $12.4m        a) $4.9m
 16                                                                                1970      168                                      respected not for profit organisation. It provides corporate support and governance
                Aboriginal Corporation        Chief executive                                          b) $11.3m        b) $4.4m       and training of community members, to help build sustainable…
                                                                                                                                       The maintenance and support of Country, traditions, lore, language and culture as
                Banjima Native Title          Ms Johanna Ramsay                                        a) $11.7m        a) $4.8m
 17                                                                                2014      183                                      well as the provision of economic, social and cultural benefits, including housing,
                Aboriginal Corporation        Chief executive                                          b) $16.0m        b) $7.4m       training and education to the Banjima People.
                                                                                                                                       The Corporation is the governing body for native title over the land of which the
                Ngarluma Aboriginal           Mr Neil Fong                                             a) $10.7m        a) $16.1m
 18                                                                                2005                                               Ngarluma people are the traditional owners. Whilst operating out of Karratha, the
                Corporation                   Chief executive                                          b) $10.9m        b) $15.3m      Ngarluma people predominantly live in the town of Roebourne and surrounding…
 19
       GET THE FULL LIST ONLINE                                 businessnews.com.au/bniq/aboriginal-corporations
 69
All information compiled using surveys, publicly available data and contact with industry sources. Other companies may be eligible for inclusion. If you believe your company is eligible,
please email: claire.byl@businessnews.com.au                                                                                   WND: Would Not Disclose, NFP: Not For Publication, N/A: Not Applicable or Not Available.

                                                                                                                                                                                            May 31, 2021 Business News | 37

                                                                                                                                                                                            May 31, 2021 Business News | PB
                                                                                                                                                                                           May 31, 2021 Business News | PB
Indigenous Business SPECIAL REPORT - businessnews.com.au
FEATURE
                                                                                                                                    INDIGENOUS BUSINESS

    Gumala, Wintawari shift focus
     Two major Aboriginal businesses have shut their contracting arms,
     choosing to invest instead in tourism and mining.

 Karajini Eco Retreat in the Pilbara has become the main focus for Gumala Enterprises.

                                      WITH Western Australia in the midst            The decision came shortly after           Enterprises and that Karijini Eco Retreat
                                      of another iron ore boom, there are         Gumala Enterprises had completed             complemented his company’s existing
                                      plenty of opportunities for Aboriginal      repayment of a $3.3 million loan to its      portfolio of facilities.
                                      businesses chasing contracts in the         parent, which included GAC writing off          “This next chapter in Karijini Eco
                                      mining sector.                              about $2.2 million.                          Retreat’s 14-year history will be exciting
                                         Despite that, two well-established          In October, GAC completed the             in terms of potential as we further
                                      Aboriginal operators have shifted away      strategic review and said it would shut      develop the market,” he said.
Mark Beyer                            from contracting during the past year.      down the civil contracting business.            To support its continued operations,
mark.beyer@businessnews.com.au           Gumala Enterprises has been                 GAC’s 2020 annual report revealed         Gumala Enterprises has taken out a $7
                                      working in the Pilbara for 15 years,        the discontinued operations generated        million loan from another entity in the
                                      winning multiple contracts in its own       revenue of $26.3 million that year,          group, Gumala Investments.
                                      right and with joint venture partners.      indicating their substantial scale.             Its focus on Karijini could be aided
                                         Like most contractors, it has had           However, after adding in other            by the state government’s election
                                      lean periods, but appeared to be on         income and expenses, Gumala                  commitment to invest $10 million

“
                                      the up during 2018 and 2019 when it         Enterprises incurred a loss of $4.4          upgrading visitor facilities at the
                                      won contracts with BHP and Rio Tinto        million for the year.                        remote park.
       The prime focus                worth more than $30 million.                   The winding down was an                      The government plans to establish
                                         Gumala obtained Supply Nation            expensive exercise, as it resulted in        a new campground, cultural walk trail
is the protection of                  certification in September 2019,
                                      which was another signal of the
                                                                                  staff redundances costing $350,000,          and interpretive facilities, and seal the
                                                                                  supplier costs of $1.7 million, and bills    dirt road between the Eco Retreat and
                                      group’s desire to expand its business       from the Australian Taxation Office          various gorges, making the area more
heritage and culture,                 operations.                                 of $2.1 million and the Office of State      accessible for hire cars and coaches.
                                         However, in July last year, its parent   Revenue of $342,000.                            More generally, the state government is

and that will be                      Gumala Aboriginal Corporation (GAC)
                                      removed the board of directors and
                                                                                     Gumala has retained ownership of
                                                                                  a workshop in Tom Price, but its main
                                                                                                                               seeking to promote Aboriginal tourism.
                                                                                                                                  Last month, it launched a $20
                                      launched a strategic review.                undertaking is ownership of Karijini         million fund to support more
unhindered - Tony Bevan                  GAC attributed this dramatic move        Eco Retreat in the Pilbara.                  Aboriginal people who wanted
                                      to COVID-19 restrictions, saying they          Gumala built the resort in 2007 and       to be involved in the sector,
                                      had reduced the pipeline of work and        took over its management in 2017.            including development of up to
                                      made it very difficult to manage the           However, it decided last year to          three new Camping with Custodian
                                      business and plan for the future.           appoint private company Mackerel             campgrounds.
                                         “The GAC board felt it needed            Islands to manage the resort.                   The government has also launched
                                      to move quickly and efficiently to             Mackerel Islands was founded in           an Aboriginal tourism action plan,
                                      resolve the situation, so the decision      1969 and operates several tourism            known as Tjina, which was developed
                                      was made to remove the Gumala               facilities in the Pilbara.                   by Tourism Western Australia and the
                                      Enterprises board,” chair Gloria Smith         Its chief executive, Drew Norrish, said   Western Australian Indigenous Tourism
                                      said at the time.                           he was thrilled to work with Gumala          Operators Council.
38 | Business News May 31, 2021
Indigenous Business SPECIAL REPORT - businessnews.com.au
FEATURE
INDIGENOUS BUSINESS
Wintawari Guruma
   Meanwhile, Wintawari Guruma
Aboriginal Corporation is close to
completing a major shift in its business
focus.
   WGAC – the registered ‘body
corporate’ holding native title for the
Eastern Guruma people – set up its own
contracting business in 2014.
   That was a contentious move, as four
Eastern Guruma families already had a
successful privately-owned contracting
business, known as Eastern Guruma Pty
Ltd (EGPL).
   WGAC’s business arm – Wintawari
Guruma Enterprises – has shut down
its labour hire operations and is in
the process of selling its plant and
equipment.
   It has retained one aspect of its
old business operations: a facilities
management joint venture with US-based
Civeo, at Fortescue Metals Group’s
Solomon mine.
   Its new focus is on mineral
exploration, under the name Guruma
Resources.
   The company has applied for nine
exploration tenements on Eastern

                                                  33.9m
Guruma land, which surrounds Tom
Price, and has already been granted

                                             $
three.
   Director Tony Bevan described Eastern                                               EASTERN
Guruma land as one of the most heavily                                                 GURUMA
                                                                                       REVENUE, 2020
mined and explored areas in Australia,
with 93 per cent covered by mining
tenements.
   This includes six Rio Tinto mines and
Fortescue’s Solomon hub.                    Perth-based contractor Eastern Guruma has a major joint venture with Wirlu-murra Enterprises.
   The area was also home to many
culturally significant places, with more
than 70 rock art engraving sites, 40       holders, and environmental social and         WGAC originally supported the                  The joint venture has been in place
ceremonial areas and 30 traditional        governance (ESG) reporting.                establishment of this business.                since 2013 and provides road maintenance
burial locations.                             Early next year, WGAC will publish         A second is SX5 Group, a diversified        and mining services for Fortescue.
   Mr Bevan said WGAC had, in the          the results and provide feedback to the    contractor that is 51 per cent owned by           Wirlu-murra chief executive Jose
past, experienced poor behaviour by        mining companies recognising areas         Eastern Guruma elder Kenzie Smith.             Castillo told Business News the scope
mining companies where they had not        of excellence and identifying areas for       The largest is EGPL, which is chaired       of this contract had been increased
complied with agreements or relevant       improvement.                               and part-owned by Tania Stevens.               and would now deliver revenue of $35
environmental and heritage laws and           WGAC director Tony Bevan said there        It has been operating for nearly 20 years   million per annum.
processes.                                 were two main reasons for shutting         and consistently ranked as one of WA’s            Wirlu-murra also delivers
   Most recently, it protested when        down the contracting arm.                  largest indigenous contractors with about      maintenance services in its own
Fortescue breached an agreement               One was to avoid any potential          200 staff, according to Data & Insights.       right to non-process infrastructure at
governing the clearance of land.           conflicts of interest in dealing with         EGPL increased revenue to $33.9             Fortescue’s Solomon mining hub.
   Fortescue issued an immediate           mining companies that may award            million and net profit to $1.9 million last       It employs about 70 tradespeople
apology and blamed an administrative       large contracts.                           financial year, according to financial         under this contract.
error.                                        “The prime focus is the protection of   statements lodged with the Australian             When these contracts were awarded
   “It’s an area under significant         heritage and culture, and that will be     Securities and Investments Commission.         in 2019, Fortescue said they were the
pressure,” Mr Bevan said.                  unhindered,” he said.                         The directors’ report said EGPL             largest it had ever awarded to 100 per
   “This enables us to manage the             The second reason was that three        had a good year due to the strong              cent Aboriginal-owned businesses.
heritage in a better way.                  businesses owned by Eastern Guruma         performance of its joint ventures and             The third major leg of Wirlu-murra’s
   “We can engage with partners that are   members were already in existence.         exceptional performance in two new             business is bus services: it owns 15
culturally responsible.”                      “The board recognised that private      projects, which included construction          buses and hires a further six to transfer
   To support its new focus, WGAC          traditional owner businesses can be        of a sealed road and a conveyor tunnel         mine workers.
has started an evaluation of mining        more nimble and responsive,” Mr            at Rio Tinto’s Silvergrass mine.                  Wirlu-murra employs 140 people
companies operating on its land.           Bevan said.                                   This offset another write-down in its       in total, with 32 per cent Aboriginal
   It has introduced a mining company         The private businesses include          discontinued pastoral operations.              participation.
scorecard, with 34 questions covering      Muntulgura Guruma, a 50:50 partnership        EGPL’s most significant joint venture          It increased annual revenue to
matters such as heritage surveys,          between Clinton Wolf’s iContracting and    is with Wirlu-murra Enterprises, an            nearly $29 million, according to the
regulatory compliance, care for the        HHF Pty Ltd, a company set up by the       entity that has been strongly supported        2020 report of its parent, Wirlu-murra
environment, relations with native title   Hughes and Hicks families.                 by Fortescue.                                  Yindjibarndi Aboriginal Corporation.
                                                                                                                                                   May 31, 2021 Business News | 39
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