Hotels, hurt feelings, and HR hassles, but Fortescue’s biggest shareholder still got richer this week

Andrew Forrest was in the headlines multiple times this week. But, he ended the week richer after a pleasing performance by the Fortescue Metals Group Limited (ASX: FMG) share price. Shares of the ASX mining share increased by 7% over the week.

That rise compares to an increase of around 0.57% from the S&P/ASX 200 Index (ASX: XJO).

So, let’s look at what happened this week.

Not enough opportunities for Aboriginals

According to reporting by The Age, former Aboriginal elder of the year and Nyamal woman Aunty Doris Mitchell-Eaton spoke at a ceremony for Iron Bridge, the latest project that Fortescue is involved with.

She said that when traditional owners and Forrest first signed an agreement to mine the land, they were assured that Nyamal people would be employed. However, they have since been told they “didn’t have the capability”, Mitchell-Eaton said. She added:

Give us the opportunity to build that capability, to mine our country. I’m standing here as a proud Nyamal, it’s hurt my feelings to see every people coming in here digging in our country and we haven’t got an opportunity.

Give us this good opportunity, we want to build this capability. That’s the word I learned from FMG because FMG knocked us back with Nyamal Mining.

In response, Forrest said that Indigenous people were being “held back by even the best-intentioned bureaucrats”.

Forrest pointed out that the mining sector was the biggest employer of Aboriginal people in the country and was responsible for advanced, highly paid work for Aboriginal people. He said: “When we take our welfare foot off their necks, they succeed as well as anybody else.”

The Age also reported Forrest as saying Iron Bridge had included $68 million in agreements to Indigenous people and for Indigenous work since the project began. FMG said it had awarded $285 million worth of work to Nyamal businesses.

Fortescue shares in its mining successes

While the ASX mining share may have copped some criticism from an Aboriginal elder, it’s worth noting the latest Australian Taxation Office corporate tax transparency report showed that Australia’s biggest miners contributed almost a third of the entire corporate income tax take in the last financial year. That’s according to reporting by the Australian Financial Review.

Those ‘biggest miners’ include Fortescue, as well as BHP Group Ltd (ASX: BHP), Rio Tinto Limited (ASX: RIO) and companies controlled by Gina Rinehart.

More staff moving on

Earlier this week, it was reported by The Australian that another senior executive at Fortescue had left the business. The company’s most senior human resources manager, Linda O’Farrell, has reportedly departed this time.

The newspaper noted that only three of the 11 members of Fortescue’s executive leadership team listed in its 2021 annual report remained with the business.

Cost blowouts and scheduling delays at Fortescue’s Iron Bridge project led to the departure of chief operating officer Greg Lilleyman and project director Don Hyma.

A restructuring of its executive incentive system saw $50 million removed from the expected bonus pool. This reportedly saw more departures.

Fortescue shares’ success is likely partly dependent on its management team.

Hotel deal booked in?

Finally, in the week that was, Andrew Forrest is reportedly negotiating a deal to buy the yet-to-be-built Waldorf Astoria hotel, which will front Sydney’s Circular Quay.

The deal could be worth up to $572 million.

According to The Australian, the deal is being negotiated at a rate of “up to $2.6 million for each of the 220 rooms” in the six-star hotel, which is being developed by Lendlease Group (ASX: LLC) as part of the $3 billion One Circular Quay development.

It was reported that while negotiations continue, it’s dependent on the final price.

The post Hotels, hurt feelings, and HR hassles, but Fortescue’s biggest shareholder still got richer this week appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has positions in Fortescue Metals Group Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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