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FMG CHICHESTER PTY LTD Community Development Plan August 2008

1. PROJECT DESCRIPTION FMG Metals Group Limited (FMG) is developing the and Infrastructure Project in the Pilbara region of . The initial project comprises: An open access port facility on the western side of Port Hedland Harbour at Anderson Point,The twin 750 m shipping berths will allow for two 250,000 dead weight tonnes (DWT) vessels to be berthed. One berth will be serviced by a wharf and shiploader whilst the other is a parking berth only, which will be upgraded for future product demand. An open access railway approximately 260kms long connecting the port to the mining operations. Mining operations at Cloud Break in the Chichester Ranges approximately 120km north west of Newman. Initial production is 45 million tonnes per annum of iron ore.

During 2008, work commenced on expansion of the project including:

o Production of up to 120 million tonnes per annum of iron ore from the Chichester Ranges, based on: o An expansion of output at Cloud Break; and o A new minesite at Christmas Creek.

The Project is being developed under two State Agreements:

1. The Railway and Port (The Pilbara Infrastructure Pty Ltd) Agreement Act 2004 which deals with the planning, construction and operation of the railway and port facilities, and 2. The Iron Ore (FMG Chichester Pty Ltd) Agreement Act 2006 which deals with the mining aspects of the Project.

FMG Chichester Pty Ltd, a wholly owned subsidiary of FMG, is responsible for developing the mining aspects of the Project.

The Pilbara Infrastructure Pty Ltd, a wholly owned subsidiary of FMG, will be the owner of the port and rail facilities. Community Development Plan

2. BACKGROUND TO THE PLAN Clause 7 of the Iron Ore (FMG Chichester Pty Ltd) Agreement obliges FMG Chichester to establish a Community Development Plan ("the Plan"). The intent of the Plan is to set out how FMG Chichester proposes to achieve community and social benefits for the Pilbara communities where we will work throughout the operation of the iron ore project. These communities are inclusive of those in the Shires of East Pilbara and Ashburton.

The community and social benefits that must be addressed in the Plan include: 1. Training and guaranteed employment for local residents; 2. Local purchasing of goods and services and regional development; 1 Contribution to community services and facilities; and 4. Developing a regionally based workforce.

3. ACHIEVEMENT OF DESIRED OUTCOMES

Results of the Community Development Plan commitments are to be measured through agreed performance indicators.

FMG Chichester recognises that some strategies outlined in the Plan require the involvement of Government agencies and the Shires of Ashburton and East Pilbara The successful delivery of some strategies may be influenced by government budgetary decisions. If this occurs, the extent of delivery will be addressed in annual discussions between the Shires and FMG Chichester on performance indicators.

FMG Chichester will also ensure that major contractors adopt and support the implementation of this plan.

4. CONTINUING CONSULTATION ARRANGEMENTS

From time totime,additional objectiveswillarise and FMG Chichester acknowledges that nothing inthis Community Development Plan precludes discussion initiated by the Shires of Ashburton and East Pilbara or FMG Chichester. Equally, in accordance with Clause 7 (8) of the State Agreement, the Minister and FMG Chichester may confer on possible amendments to the plan. Under the latter circumstances, FMG Chichester will hold discussions with the Shires of East Pilbara and Ashburton before agreeing any amendments with the Minister.

Commitments in the plan may be amended or additional schedules may be included, by agreement between the Shires and FMG Chichester. Any changes or additions to the plan have no effect unless approved by the Minister. Community Development Plan

By December 31 2008, the Shires of Ashburton and East Pi lbara and FMG Chichester will have completed the following:

1. Development of a preliminary set of Key Performance Indicators (KPI's) and Performance Measures (PM's) against the strategies identified in the Community Development Plan and their relationship to the Shires' annual strategic plans. 2. A joint implementation plan for the implementation of actions leading to achievement of the KPI's. This plan is to include: a. the structure of partnership arrangements, and b. the commitment of FMG Chichester, Shire of Ashburton and Shire of East Pi lbara to the implementation of the actions 3. A joint annual review cycle for the KPI's and Performance Measures and a five yearly review of the Chichester Community Development Plan.

Asubstantialchange in scopeorscaleofactivitiesconducted by FMG Chichester, pursuant to the State Agreement; other than for mine closure purposes; will trigger a review of the plan. In any event, the plan will be reviewed at a minimum of every 5 years. The review process will include discussions between the Shires of East Pilbara and Ashburton, FMG Chichester and the Minister. Any changes or additions to the plan have no effect unless approved by the Minister.

An annual report on the outcomes of the Community Development Plan commitments will be included in FMG Chichester's Annual Report and provided to the Shires of East Pi lbara and Ashburton, and to the Minister responsible for the Agreement.

5. THE OPPORTUNITIES I BENEFITS

The Pilbara Iron Ore and Infrastructure Project provides a number of significant benefits to the State of Western Australia and the Pilbara region. The mining component of the project, to be developed by FMG Chichester, will deliver the following benefits:

Payment of royalties to the State Government on the mined iron ore;

Full payment of rates to Local Government;

Creation of significantdirect andindirect employment opportunities through materials purchase, construction and operation;

Secondary processing obligations once specific iron ore production triggers are reached; Community Development Plan

Regionalcommunitycapacitybuildingthroughlocalemployment opportunities, including meaningful vocational training and employment for localindigenouspeople,contributionstocommunityinfrastructure, facilities and programmes within the Shires of Ashburton and East Pilbara, procurement fromlocalsuppliersandthrough FMG Chichester's commitment to this Plan.

The infrastructure components of the project are to be developed under the Railway and Port Agreement, and will deliver the following additional benefits:

The railway and port facilities are to be available to other parties under open access arrangements; and

Construction of the railway and port facilities requires expenditure of initially approximately $2 billion, which is a significant contribution to the State's economy. Community Development Plan

OUTCOME 1

Training & employment for people living in the Pilbara

Strategies

1. Develop in partnership with relevant Federal and State Governments and community organisations, initiatives and projects to assist East Pilbara and Ashburton long term unemployed and unskilled job seekers (including indigenous members of the community) to gain sustainable full-time employment within the company's mining operations, including the construction phase.

2. Develop and enact partnerships with Federal and State Governments to assist FMG in delivering employment and training programmes in accordance with the needs of East Pilbara and Ashburton communities.These programmes may include cadetships, apprenticeships, traineeships, Aboriginal school based traineeships and school based apprenticeships.

3. Give preference to indigenous people from communities surrounding FMG mining operations and guarantee the employment of those indigenous people who successfully complete FMG's Vocational Training and Employment Centre program (VTEC).

4.Ensure that contract briefs include a provision to maximise East Pilbara and Ashburton employment, including indigenous employment opportunities.

5. Work to meet a target for employment of local Pilbara Aboriginal people equal to 20% of FMG's total operational employment base.Aboriginal people, especially those with connections to land surrounding the mining operations, will be given preference in employment.

6. Join with other organisations in developing local solutions to East Pilbara and Ashburton based unemployment (including the provision of necessary skills and experience). Community Development Plan

OUTCOME 2

Regional Development & Local Procurement of Goods & Services

Strategies

1. Provide the following assistance to Pilbara businesses in tendering for FMG contracts: a. In partnership with the Shires of East Pilbara and Ashburton and relevant organisations, identify business management and partnership opportunities for local business; b. Conduct information sessions about business opportunities with FMG. Include information on contracting policies and procedures, supplier requirements, timing factors and scope of business opportunities; c. Develop and maintain a data base of local industry capabilities to support local businesses in accessing FMG procurement opportunities; d. Pricing preference for local businesses including Aboriginal owned businesses, based on prevailing local Pilbara economic factors; e. FMG will work with PDC and relevant agencies to identify and implement activities for training in business management agreements and partnership opportunities for local businesses; f. Maintain a business development program to assist companies in their interaction with FMG; g. Delegation of certain purchasing decisions to regional level.

2. Partner withFederal,State and Local government agencies and other relevant organisations focussed on developing communities around the mining operations of FMG.

3. Partner with the Shires of East Pilbara and Ashburton and relevant organisations to jointly develop plans and projects to address Pilbara regional issues and collaboratively implement them (e.g. Pilbara Coordinating Taskforce).

4. Develop agreed local (East Pilbara and Ashburton) content targets for the operational phase of the project.

5. Form partnerships with relevant government and non-government agencies to encourage and strengthen the capacity of local East Pilbara and Ashburton businesses and enterprises to partner with FMG and to improve prospects for local economic and community growth.

6. Implement economic development initiatives, with long term impacts in the Shires of East Pilbara and Ashburton, in collaboration with relevant stakeholders.

7. Facilitate information and technology transfer opportunities where appropriate with stakeholders. Community Development Plan

OUTCOME 3

Contribution to Community Services & Facilities

Strategies

1. Encourage all FMG and contractors' employees to act in accordance with FMG's Community policy (Attachment 1) and corporate values. 2. Ensure FMG engages and is represented on key community groups/bodies in the Shires of East Pilbara and Ashburton as appropriate.

3. Work with the Shires of East Pilbara and Ashburton and community organisations to establish and prioritise community issues and resourcing needs.

4. Develop and implement community development and resource allocation opportunities involving FMG and Shire of East Pilbara and Ashburton communities.

5. Ensure the Shires of East Pilbara, Ashburton and communities (including traditional Aboriginal owners) are represented on the Fortescue resource allocation committee.

6. Provide regular communication and feedback to the local community through: a.effective community consultation and participation such as community forums to discuss ways to manage community issues;

b. locally accessible Fortescue shop front located in the region; c. the employment of community liaison staff; d. the operation of a community complaints resolution process; and e.employees being encouraged to join at least one recognised local community group (supported through membership fee support).

7. Develop and implement an advocacy strategy and advocate on behalf of communities in the Shires of East Pilbara and Ashburton. Community Development Plan

OUTCORIE 4

Regionally Based Workforce

Strategies

1. In line with FMG's no fly-in fly-out aspiration, encourage and assist all FMG Chichester employees within the Shires of East Pilbara and Ashburton to reside in the communities where their employment is based.

2. Implement a comprehensive housing policy that clearly states FMG's intention and role in the provision of housing for employees and contractors in East Pilbara and Ashburton.

3. Work with relevant local authorities, developers and housing agencies in identifying and implementing innovative opportunities to meet accommodation and housing needs for FMG Chichester operations in East Pilbara and Ashburton

4. Provide high quality housing for FMG and contractors' employees in East Pilbara and Ashburton.

5. Work to minimise any impacts, from housing FMG's workforce, upon the local East Pilbara and Ashburton housing market. Community Development Plan

ATTACHMENT 1

FORTESCUE METALS GROUP

OUR COMMITMENT TO THE PILBARA COMMUNITY

(Fortescue Community Policy)

Fortescue Metals Group is committed to supporting the Pilbara region today, tomorrow and in the long term. In particular, we will:

Be open, honest and consistent in our dealings with the community

Try to resolve any concerns with the operation of our business- the first time that they are raised with us

Work to meet the needs of the local community as we meet our own needs

Endeavour to share our success with the Pilbara communities on which we depend Fortescue Metals Group CHICHESTER COMMUNITY DEVELOPMENT PLAN

(for the period January 2009 to June 2010)

From the General Managers Cloudbreak and Christmas Creek

It has been a busy period of achievement, challenges and continued success for our dedicated team of employees in the Chichester Hub. While we continue to break records and raise industry standards in our operational activities, we are cognisant that our business can also provide many benefits for communities, including procurement opportunities through our contracts with local businesses, providing support for local community groups and facilitating and providing opportunities for Indigenous people within the region.

Our integral Community team recognise the multitude of possibilities for social and business development and will continue to work with the Shire of East Pilbara and the Shire of Ashburton to advance these outcomes.

The great news is that Fortescue is here to stay. We have gone from strength to strength in our business and our customers have faith in Fortescue to deliver. This means that we are able to continue to provide benefits, such as the upgrade of a section of the Nullagine Road which is currently being undertaken. This project will provide great benefits for the community and the company.

We are entering into a very exciting time in the life of Fortescue and look forward to celebrating our success and contributing in partnership with the Shire of East Pilbara and the Shire of Ashburton to foster a sustainable future for us all.

IN Isak Buitendag Viv Roberts at Fortescue General Manager, Cloudbreak General Manager, Christmas Creek The New Force in Iron Ore INTRODUCTION

The State Agreement for the Chichester Hub was signed between Fortescue Metals Group Pty Ltd (Fortescue) and the State Government on the 1" December 2005. Section 7 of this Agreement relates to the Community Development Plan.

This report is provided to detail the outcomes in relation to the community and social benefits areas as outlined in the agreement for the period 15t January 2009 to 30th June 2010. The CD Plan is structured on Section 7(1) of the State Agreement, where the term "community and social benefits" includes:

(a) training and guaranteed employment for Indigenous and non-Indigenous persons living in the Pilbara region; (b) regional development and local procurement of goods and services; (c) contribution to community services and facilities; and (d) a regionally based workforce. TRAINING AND EMPLOYMENT FOR INDIGENOUS AND NON-INDIGENOUS PEOPLE LIVING IN WESTERN AUSTRALIA'S PILBARA REGION

Fortescue has a strong vision for Indigenous employment generally and a commitment to Indigenous employment within the company, especially for those with connections to land surrounding our operations.

During the period, a number of actions were undertaken to deliver training and employment outcomes, including Fortescue's Vocational Training and Employment Centre (VTEC) programs; the ability for major suppliers to develop employment opportunities; the development of programs in conjunction with government agencies; and business opportunities that could be linked to training programs.

Fortescue's VTEC training program has been specifically designed and developed to meet the needs of Indigenous trainees and to assist them through the many barriers and learning needs they face in realising their desire for employment. During this reporting period, Fortescue directed its focus on delivering employment and training programs and Indigenous employment opportunities within Fortescue as this was recognised as the most effective use of resources to increase Indigenous employment in the Pilbara at this time. Fortescue's commitment to Indigenous employment is being realised with encouraging training to employment figures. Fortescue has employed 226 Indigenous employees since January 2008 with 178 Indigenous people employed since the commencement of the Summit 300 program in June 2009. Of these, 133 employees are from the Pilbara region with the remainder from the Kimberley, South West, Mid-West and the Eastern States.

To further progress recruitment of Indigenous people close to Fortescue's operations, VTEC undertook a number of activities. VTEC operations met with stakeholders in Newman and Jigalong to discuss a Newman training and support program (including our wellness and license programs to address the common barriers Indigenous people face to getting employment). This included VTEC staff providing driver license advice and support to Jigalong community members in February.

VTEC also undertook considerable planning work to establish a training program in Newman with the intent to employ people at Fortescue's Christmas Creek or Cloudbreak minesites. VTEC met with the Ashburton Aboriginal Corporation (AAC) in Newman twice and also accompanied them twice on community visits to Jigalong for recruitment and training information sessions in preparation for the Newman training program. The AAC assisted VTEC by collecting resumes and providing information and application packs to participants. Ideas for similar programs were discussed with AAC in Tom Price earlier in the year, but the opportunity to further these ideas has not been realised. Discussions were also held with Newman TAFE to identify opportunities to partner in delivering training programs. These discussions centred around Newman TAFE's ability to provide particular subjects which would attract sufficient numbers of students as well as the staff resources to run those courses. Due to Fortescue's decision to undertake contract mining at Christmas Creek and the no longer requiring the large scale recruitment initially anticipated, there were not the critical numbers required to establish training courses in these locations and this course was cancelled. There is still the opportunity to reopen these discussions however this is reliant on positions being available at our minesites to enable trainees to progress from training directly to employment.

Fortescue's VTEC staff also investigated the feasibility of a drive-in drive-out and fly- in fly-out option for Newman in April 2009. Due to mitigating circumstances such as cost, seasonal weather issues affecting road accessibility, administrative issues, resourcing, vehicle safety and general OH&S issues, the drive-in, drive-out options were not pursued. Investigations into local transport options for Indigenous employees focussed on the Indigenous communities as there were found to be very few Indigenous people living in Newman. The investigations indicated that organised flights provided a safe means of transport, however, to be viable required a minimum number of employees living in these communities. The potential number of Indigenous people living in these communities was below viable thresholds due to alternative employment options available to the residents in these communities. Subsequently, Fortescue was not able to progress this concept further.

Fortescue looked to leverage its suppliers to engage in the employment of Indigenous people in their companies. Fortescue has been active in ensuring that its contract briefs include a provision to maximise East Pilbara and Ashburton employment, including Indigenous employment opportunities. Fortescue's major contractors (over $1 million) are required under the Standard Terms and Conditions to take a proactive policy with respect to the employment of Indigenous people. Fortescue is in the process of developing standard KPIs and reporting for this area. Other contractors are also actively encouraged to employ people living in the Pilbara. A clause in Fortescue's Standard Terms and Conditions requires Contractors to use labour available within WA and all reasonable endeavours to ensure as many as possible are recruited from the Pilbara.

The company has also looked at developing and enacting partnerships with the Federal and State Governments, to assist in delivering employment and training programmes in accordance with the needs of East Pilbara and Ashburton communities, including cadetships, apprenticeships, traineeships, Indigenous school based traineeships and school based apprenticeships. These discussions are still progressing. One area which Fortescue focussed on was investigating options to work with the Newman Senior High School to deliver a program that encourages at-risk students to stay engaged in their education and build on existing programs. Numerous discussions were held with the Newman High School following joint attendance at the Indigenous Stronger Smarter conference. A project to develop Martu resources to teach English was considered as the way forward and considerable work undertaken to identify the right resources including teaching staff to undertake this project. Unfortunately the teacher left and the project was unable to proceed. During this time alternative projects were discussed at various workshops which Fortescue attended to investigate ways to provide a mobile curriculum for students as they move around the Pilbara. This project is still in a feasibility stage and Fortescue continues to work with the School and other partners on progressing this to the next phase. Fortescue also supported the Newman High School's funding application for a Trade Training Centre. The application required industry partners to support the project as part of the application criteria. The centre would be fitted out to industry standards and would help students successfully move towards obtaining apprenticeships and ultimately a trade qualification.

In working towards training and employment opportunities that could be linked to business opportunities, a tyre recycling plant Feasibility Study was provided to the Shire of East Pilbara (SoEP). However, this project has not proceeded past feasibility study stage, due to commercial limitation changes to the patent on which the feasibility study was based which then limited the ability to further progress this initiative. Preliminary discussions were held with the SoEP regarding a feasibility study for a nursery in Newman, however, it was mutually agreed that the timing and capacity within the Shire to work on this project jointly with Fortescue was limited due to other more pressing priorities.

In summary, Fortescue continues to work in partnership with local stakeholders and service providers, to prepare and retain people in employment and training opportunities with the company across the Pilbara region. Fortescue has continued to support its Indigenous workforce who chose to live in Hedland and work at our Cloudbreak minesite and we have taken every opportunity to investigate alternative options closer to the mining site and will continue to look at them as opportunities present themselves. Fortescue is well on track to meet its ambitious target for Indigenous employment. REGIONAL DEVELOPMENT AND LOCAL PROCUREMENT OF GOODS AND SERVICES

The overall outcome and strategies for this area are related to tendering for Fortescue contracts and providing local businesses with information and a knowledge base, so that they are informed of the relevant requirements needed to be involved in the process.

Fortescue revisited its intent to hold information session about business opportunities following preliminary investigations which determined there was little economic development planning strategic work that had been undertaken in Newman and there was not a strong businesses network on which to launch these activities. With this in mind, Fortescue funded a consultant to have preliminary discussions with the SoEP on a way forward for economic development as the basis of a planned approach to these issues. A "Newman in Transition to Normalisation of Small Business" report was provided to the SoEP as a basis for further discussion. Fortescue also took the opportunity to utilise the consultant's expertise to undertake a workshop with the newly formed Tom Price Business Association which was to strengthen its direction and provide feedback through a report on "Concepts for Business Association Activities". These activities were aimed at strengthening the business base and networks in these communities and enhancing future local procurement engagement activities.

Fortescue made a significant contribution to the local economy through its business operations. For the report period, Fortescue spent approximately $39,419,000 in the SoEP and $1,933,000 in the Shire of Ashburton (SoA). This expenditure is of significant benefit to local businesses within each region, which has important flow on effect to the communities.

In addition to this local spend; Fortescue looked at the implementation of various economic development initiatives, where long term impacts in the Shires could be achieved, in collaboration with relevant stakeholders. One outcome which concentrated on developing partnerships with local businesses and identifying business development opportunities, was Fortescue's investigation into facilitating the Respect our Culture (ROC) Tourism Accreditation opportunities with the respective tourist bureaus. The ROC presentation was re-scheduled on three occasions, however, was eventually deferred due to the three parties not being collectively ready (SoEP, SoA, and the Karajini Visitor Centre). With the SoA Tourism strategy recently being formulated, Fortescue will assess if there are future opportunities for partnerships. Fortescue provided support to the Newman Visitors Information Centre in its development of a business plan for the Centre. The utilisation of the Newman Racecourse facility to support business development and employment opportunities is an ongoing initiative that has been worked on throughout the 18 month period. Fortescue's racecourse facility has 33 rooms which have been used by a variety of contractors including Transfield Services and BHP Billiton level 1 contractors. This has boosted economic activity in Newman and relieved the pressure on other accommodation facilities within Newman where accommodation of any type is in high demand.

Also of benefit to local businesses and members of the community, the upgrade of Fortescue's optic fibre line into our Christmas Creek mine. The outcome of this is near-by users can create a spur off this line, through Telstra. The upgrade is anticipated to be completed in the second half of the 2010 calendar year. Fortescue has also recently upgraded mobile phone coverage in the area of the Christmas Creek minesite which equally benefits businesses and the community in general, who can now receive improved mobile phone coverage.

CONTRIBUTION TO COMMUNITY SERVICES AND FACILITIES

Fortescue encourages all staff and contractors to act in accordance with the company's Policy and Corporate values. Throughout the 18 month reporting period for this plan, there were no complaints received in relation to adverse behaviour of Fortescue employees or contractors.

Furthermore, Fortescue staff were actively involved in the community and attended a number of key forums and meetings including:

PICC; Pilbara Dialogue; Newman CCG; Newman Town Centre Revitalisation; and Chamber of Minerals and Energy North West Regional Council

Fortescue staff also provided input to the Chamber of Minerals and Energy State Growth Outlook; PICC Population and Employment document; and the Pilbara Land and Housing Regional Infrastructure Requirement document. These documents have been developed or used to guide infrastructure and resource planning for State Government and specific issue input such as the Marble Bar Road. Furthermore, Fortescue's VTEC staff were involved with the Roebourne/Ashburton RPA. Unfortunately, this initiative is no longer operating. Fortescue provides community support to the areas in which we operate in a number of ways and we pride ourselves on providing quality in-kind support that really supports the community. In total, Fortescue provided an estimated $71,000 in support to the SoEP community, through various elements ranging from supported accommodation, through to the loan of equipment and volunteers support and the donation of a Defibrillator for use at the local community recreation centre. Similarly support to the estimated value of $11,800 was contributed to the SoA community.

Fortescue staff also worked at a number of local events, including the: Newman Rodeo; Newman Races; and Nameless Day FestivalBall and one of the stalls at the Festival

Fortescue's Racecourse Facility staff assisted with the local Golf Club Pro- Am, providing food and accommodation and also donated sausages to assist fundraising for High School teams involved in Country Week in Perth. It is estimated Fortescue contributed, in-kind, approximately $10,000 to the Newman Races. The Fortescue Racecourse facility has also been used as a venue to support the community including accommodating the Roebourne High School Football team (accommodation and meals for 25 people) and the Newman High School who had a tour of the facility for its catering class. The facility provided around 148 nights of either free or subsidised accommodation for community groups and organisations visiting Newman. This contribution enabled many of these groups to reduce their costs associated with their visit to the Town.

Fortescue continues to be transparent in terms of its communication with the local community and providing feedback. There has been regular dialogue with the SoEP in relation to the Chichester Plan. There was also a briefing meeting held with the SoEP at the Fortescue Racecourse Facility to inform Council on Fortescue's activities at our minesites. This included a presentation by the General Managers of Cloudbreak and Christmas Creek and the General Manager Hedland with responsibility for our Port and Rail Operations in Port Hedland. This presentation was followed by an informal opportunity for Councillors to talk with these key staff. Extensive consultation has been undertaken in the SoA in relation to the proposed new Solomon project.

Fortescue has a presence in Newman through its Newman Racecourse Facility, with regular visits from staff in its Community Team. This facility also provides the opportunity for the community to access Fortescue's staff. Fortescue has a community feedback system in place. There have been no complaints registered from residents of the SoEP or the SoA during the reporting period. A new position within Fortescue was also created, which has a focus on the Chichester Region, allowing the company to have increased dialogue and contact with both Shires within the area. During the reporting period, no formal request to partner in advocacy actions were received from the Shires, however, the issue of the Marble Bar road was raised as an issue of concern by the SoEP. Fortescue has supported the Chamber Minerals and Energy in relation to progressing the importance of the Marble Bar Road and has had detailed discussions with the Department of Main Roads in relation to partnering to upgrade this road.

A REGIOr M_,LY BASED WORKFU7CE

In line with Fortescue's residential regionally based workforce aspirations, a number of investigations have been conducted into drive in/drive out and fly in/fly out workforces. These investigations have been particularly focussed on Fortescue's Indigenous employees in the Chichester Hub in line with our commitment to increasing employment for this group. These investigations have indicated that neither option is viable at this stage as the company is focussed on a regionally based workforce in Hedland and is not looking to establish a residential workforce in Newman.

Fortescue's Christmas Creek expansion program is predominately staffed by contractors. Fortescue is working with these major contractors to consider a regionally based workforce.