The RAC established Bunuwal Fuel, through which they have an eight year contract with Rio Tinto to import approximately 50 million litres of fuel annually. In a very short time, Bunuwal Fuel has established itself as a reliable player in Australia, importing diesel directly from the regional distribution centre in Singapore.
Established jointly by Bunuwal Investments and Cambridge Gulf Limited (CGL) of Kununurra, Western Australia, both organisations invested seeding funds to kick-off the new company and after its first year of operation, Bunuwal Fuel provided a 50 per cent return on equity for the business venture.
There was a global procurement process against major multinationals for the Rio Tinto contract – a contract to be won or lost on price and ability to supply – and in 2012 the contract to supply 20 million litres of diesel per year was awarded to Bunuwal Fuel.
In the past year, Bunuwal Fuel earnings have more than doubled - an upsurge in local mining activity has seen an increase in the required supply of fuel from 20 million to 50 million litres per year.
Profits from the company contribute to Bunuwal Investment’s key objective of building wealth and creating sustainability for the Rirratjingu's post-mining existence. The rapid growth of Bunuwal Fuel is a key highlight of Bunuwal Investment’s direct equity investment strategy.