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Modern Slavery Statement FY20 3 About Fortescue Modern FY20 Slavery Statement ABN 57 002 594 872 Global force | Thriving communities About this statement This statement has been prepared All references to our, we, us, the Group by Fortescue Metals Group Ltd and Fortescue refer to Fortescue Metals (Fortescue) to meet the requirements Group Ltd (ABN 57 002 594 872) and its of the Australian Modern Slavery Act subsidiaries. All references to a year are 2018 (Cth) for the financial year ending the financial year ended 30 June 2020 30 June 2020 (FY20). The statement unless otherwise stated. forms part of our annual reporting suite which also includes our FY20 Annual Feedback Report, FY20 Climate Change Report, We value all feedback. Please forward FY20 Sustainability Report and FY20 any comments on this statement or Corporate Governance Statement, all requests for additional information to of which are available on our website at [email protected] www.fmgl.com.au This statement has been approved The statement captures the activities by Fortescue’s Board of Directors on of Fortescue, our subsidiaries and the 24 August 2020. entities owned and controlled by our Company. It has been prepared by our Sustainability team in collaboration with our Modern Slavery Working Group and has been externally reviewed. Elizabeth Gaines Chief Executive Officer 24 August 2020 Contents About Fortescue 04 Our approach 05 Overview of Corporate Governance 08 Human Rights Framework 09 Due diligence 12 Looking ahead 17 Appendices 18 Our Purpose Global force | Thriving communities Our Culture We are a values-based business with a strong, differentiated culture. We believe that by leveraging the unique culture of our greatest asset, our people, we will achieve our stretch targets. Our Values Safety Family Empowerment Frugality Stretch targets Courage and Generating Integrity Enthusiasm determination ideas Humility About Fortescue FY20 highlights Framework Rights Human Governance Overview of Corporate Self-Assessment Revision of Questionnaire Modern Slavery diligenceDue launch Strategy Risk analysis Independent of suppliers audits Looking ahead Ongoing Creation of a training of Sustainable employees Procurement Standard Appendices Fortescue Metals Group Ltd Modern Slavery Statement FY20 3 About Fortescue About Fortescue A proud West Australian company, Fortescue Metals Group Ltd (Fortescue) is a global leader in the iron ore industry, recognised for its culture, innovation and industry-leading development of world class infrastructure and mining assets in the Pilbara, Western Australia. Since Fortescue was established by Port Hedland our Founder and Chairman HERB ELLIOTT PORT Dr Andrew Forrest AO in 2003, we Roebourne Concentrate pipeline Karratha have discovered and developed major iron ore deposits, constructed Marble Bar some of the most significant mines IRON BRIDGE globally and have grown to be one Pilbara SOLOMON HUB Nullagine of the world’s largest producers of CHICHESTER HUB Western Australia iron ore. Eliwana Firetail Cloudbreak Current operations Kings and Queens Christmas Creek Under development Delivering consistent operational WESTERN HUB NYIDINGHU excellence, our integrated mining, Tom Price rail, shipping and marketing teams Newman work together to export around 175 to 180 million tonnes of iron ore annually (mtpa) and our commitment chain to deliver significant sales entity, to support our customers to technology and innovation safety, productivity, efficiency through the direct supply of iron ore ensures we remain one of the world’s and commercial benefits and from regional Chinese ports, providing lowest cost iron ore producers. will underpin our future use of them with an option to purchase technology, including artificial smaller volumes in renminbi. Fortescue’s wholly owned and fully intelligence and robotics. integrated operations in the Pilbara Fortescue was founded on the include the Chichester and Solomon Through our world class exploration belief that our communities should mining hubs and we are developing capability, together with our benefit from our success. Today, we the Western Hub, home to the business development and projects are a global force, committed to new Eliwana mine. The Iron Bridge focus, we are driving future empowering thriving communities, as Magnetite Project, an industry-leader growth, targeting the early stage we deliver training, employment and in cost and energy efficiency, will be exploration of commodities that business development opportunities one of the highest-grade magnetite support decarbonisation and the for Aboriginal people. electrification of the transport sector. projects in the world. As a large consumer of energy, we Our mining hubs are connected to We are undertaking exploration have committed to an industry- the five berth Herb Elliott Port and activities in New South Wales leading carbon emissions target the Judith Street Harbour towage and South Australia, as well as of net zero operational emissions infrastructure in Port Hedland via in Ecuador and Argentina, and by 2040. To achieve this, we are 620 kilometres (km) of the fastest, undertaking preliminary exploration investing in practical initiatives such heavy haul railway in the world, activities on tenements that as the development of wind and solar with an additional 143km under are in application in Colombia, energy, as well as gas and battery development to support Eliwana. Peru, Portugal and Kazakhstan, storage hybrid projects to displace our prospective for copper, gold and current thermal generation. We are Our supply chain extends to our lithium. also investigating the next phase of innovative tug fleet and the eight hydrogen and battery electric vehicle purpose-built 260,000 tonne Our longstanding relationships with mobility. capacity Fortescue Ore Carriers, customers in China have grown which have been designed to from our first commercial shipment Fortescue is a values-based business, complement the efficiency of our of iron ore in 2008. Today, we are a committed to our strategic goals port and maximise the safety core supplier of seaborne iron ore of ensuring balance sheet strength and productivity of Fortescue’s to China and have expanded into and flexibility, investing in the operations. markets that include Japan, South long-term sustainability of our core Korea and India. business while pursuing growth and The Fortescue Hive, our expanded development options and delivering Integrated Operations Centre, In 2019, we established FMG Trading enhanced returns to our shareholders. brings together our entire supply Shanghai, a wholly owned Chinese 4 Fortescue Metals Group Ltd Modern Slavery Statement FY20 Activities undertaken in the Pilbara We are also undertaking exploration human rights and modern slavery About Fortescue include mining related exploration, activities in New South Wales, South apply to all Group Subsidiaries. construction of mining infrastructure, Australia, Ecuador and Argentina, extraction and processing of iron as well as early stage exploration As of 30 June 2020, we have 8,508 ore, rail transport and shipping of activities on tenements that are direct employees, including 1,553 ore. We also undertake research in application in Colombia and people under labour hire contracts. and development and invest in our Kazakhstan. Those working under labour hire communities, including through contracts backfill permanent the provision of scholarships and Fortescue is a public company Fortescue roles and are not hired in community event support, our listed on the Australian Securities a service contractor capacity. 414 of Pilbara focused community grants Exchange, with headquarters based our employees are permanent part- program and the sponsoring of in Perth, Western Australia. time and 47 per cent are covered by Enterprise Agreements. sporting teams and events. We have a number of owned and controlled entities in jurisdictions 8,152 of our employees are based in We operate offices in Singapore, Framework Rights Human Governance Overview of Corporate where the majority of our shipping both within and outside of Australia Australia, with 5,149 of these in the services are based, and China, (Group Subsidiaries). A list of our Pilbara. We also have employees where the supply of our ore to active subsidiaries is included in based internationally, including in customers is managed. Appendix 2. Fortescue’s standards, Singapore, Ecuador, Colombia, China policies and procedures relating to and Argentina. Our approach Fortescue is committed to identifying, assessing and mitigating diligenceDue human rights impacts, providing access to remedy through effective grievance mechanisms and ensuring continuous improvement to strengthen our actions. Our Human Rights Policy forms Key actions undertaken in FY20 the foundation of our approach to include: managing human rights risks. It • Revision of our Modern Slavery Fortescue details our commitment to respect Strategy, an internal guidance the internationally recognised document that outlines the opposes all forms human rights of all people, including processes and procedures to our employees, the communities in identify and address the impacts Looking ahead of slavery in our which we operate, those who may be of modern slavery within our impacted by our activities and those operations and company (see Human Rights within our supply chain. It sets out Framework on page 9) the operations of a clear statement of our prohibition of the use of all forms of slavery, • Development and implementation our suppliers. child
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