By PETER ROWE

Indigenous Business Australia (IBA) has announced more than $1 billion in contracts have now been supported through the IBA Performance Bond Trust – a milestone achievement since the bonds were introduced in 2018.

The bond partnership that took the contract’s value to over the $1 billion mark is through Mine Power Solutions, an Indigenous-owned and managed diversified construction, mining and electrical contractor which has been successful in winning contracts at Olympic Dam in South Australia.

Cameron Buzzacott, Managing Director of Mine Power Solutions, is a long-standing IBA customer, being the initial performance bond customer through one of his other ventures, Zancott Knight.

“In mid-2018, Zancott Knight strategically decided to collaborate with IBA, transitioning away from our traditional banking institutions for bond requirements,” Mr Buzzacott said.

“Being IBA’s first client, this bond was pivotal for both companies. For Zancott Knight, it was a turning point as it not only streamlined the process of bond origination but also freed up working capital to grow our business.”

Performance bonds are issued to the beneficiary of a contract as security against the other party being unable to meet obligations specified in the contract.

Banks often require a 100 per cent cash deposit as security for the bond, which ties up considerable amounts of working capital.

IBA assists Aboriginal and Torres Strait Islander businesses by issuing bonds directly to the buyer, in cases where the business may not have the required level of security to provide a bond facility for their contracts.

Since inception, IBA now supports over 500 performance bonds valued at almost $60 million with contracts valued at over $1 billion, an increase since 2020 when IBA supported 170 bonds worth $12 million, and contracts valued at nearly $202 million.

IBA CEO Kirsty Moore was delighted with the news. “IBA’s Performance Bond Trust has assisted First Nations contractors across the country to participate in a wide variety of contracts including mining, civil works, construction, facility upgrades and renewable energy construction by guaranteeing their capacity to complete projects while requiring minimal security,” she said.

“We’re extremely proud of this milestone figure – it ultimately contributes to Aboriginal and Torres Strait Islander business growth which is positive for everyone.”