Mining technology provider K2fly (ASX:K2F) reports unlisted iron ore producer Roy Hill has contracted the company’s Ground Disturbance Solution for its operations in the Pilbara region of Western Australia.
K2fly, which has an $18.84 million market capitalisation, says the contract is expected to generate an annual recurring revenue (ARR) of $300,000 and has a total contract value (TCV) of $2 million over a 5-year term.
Under the contract, K2fly will deliver its Ground Disturbance Solution to Roy Hill’s integrated iron ore mining, rail, and port operations.
This contract follows an initial contract with Roy Hill for the K2fly Mine Technical Assurance (MTA) suite on 24 May 2021. This first contract had a TCV of $2.44 million and an ARR of $3.3 million.
Commenting on the new contract with Roy Hill, K2fly Chief Executive Officer (CEO) Nic Pollock says: “This agreement firmly establishes K2fly as the leading supplier of Natural Resources Governance Solutions in the Pilbara region of Western Australia.
Our commercial off-the-shelf (COTS) Ground Disturbance Solution is unique globally and supports mining companies to protect their licence to operate in an increasingly regulated sector of the market. We are really pleased to expand our partnership with Roy Hill and look forward to another successful project together.”
“This agreement firmly establishes K2fly as the leading supplier of Natural Resources Governance Solutions in the Pilbara region of Western Australia”
The Ground Disturbance Solution is a permitting and approval solution that allows clients to track ground disturbance work including clearance limits, obligations, and any breaches.
Roy Hill is an independent iron ore operation that produces 60 million tonnes per year of iron ore in the Pilbara region of Western Australia. Hancock Prospecting holds a 70% interest in the project, while Marubeni Corporation (TYO:8002) holds a 15% interest.
POSCO (KRX:005490) also holds a 12.5% interest in the project, and China Steel Corporation (TPE:2002) holds the remaining 2.5% interest.
K2fly is an ASX-listed technology provider of enterprise-level resource governance solutions for environmental, social, and governance (ESG) compliance, disclosure, and technical assurance to operations of mining and asset-intensive industries through its Software-as-a-Service (SaaS) cloud solutions.
The company’s suite of products offered include Natural Resource Governance, Mineral Resource Governance, and Technical Assurance. On 20 June 2023, K2fly secured a $1.99 million contract extension with BHP (ASX:BHP) for its Ground Disturbance Solution.
Write to Harry Mulholland at Mining.com.au
Images: K2fly Ltd