BHP's Local Buying Program has reached a major milestone with more than A$1 billion spent with small, local and Indigenous businesses across regional Australia.
Since its launch in 2012, the program has helped nearly 1600 small businesses become part of the BHP supply chain, involving over 67,000 work packages with an average payment period of seven days.
BHP President Minerals Australia, Geraldine Slattery said: "More than $1 billion spent through BHP's local buying program is a huge milestone. BHP depends on the capability and talent of the many small, local and Indigenous businesses who support our operations across Australia. It's been wonderful to see them flourish as we forge new and deeper partnerships together.
"Local businesses are vitally important to BHP's success, and to the capacity of regional Australian communities to create and sustain jobs. We look forward to seeing our local buying program go from strength to strength.
"Small, local and Indigenous businesses have a wonderful opportunity to be at the forefront of modern sustainable mining, helping to drive their regional economies forward and produce the critical minerals needed for the energy transition."
A partnership between BHP and C-Res, the Local Buying Program makes it easier for small business owners to competitively bid for supply opportunities through a streamlined onboarding, procurement and payment process that includes 7-day payment terms or less. Small businesses also have greater access to work opportunities with BHP through a central online directory.
BHP Chief Commercial Officer, Vandita Pant said: "Our business and our industry plays a vital role in keeping local economies strong, generating opportunities, and providing jobs. Every day we work with thousands of our supply partners to deliver great outcomes. A milestone such as this is a testament to our commitment to building relationships based on mutual benefit and one that will continue to grow for many years to come."
C-Res CEO, Tracey Cuttriss-Smith said: "To see A$1 billion paid out to small local and Indigenous businesses in just over 10 years of operation, is something that we never could have imagined. This money has helped businesses grow, helped sponsor sports teams and helped provide jobs and opportunities for community members. We look forward to continuing our partnership with BHP as we work towards the next A$1 billion."
Originally established to support local businesses surrounding the BHP Mitsubishi Alliance in Queensland, the program's success has seen it expanded to all BHP's Australian assets, as well as being replicated for its Minerals America operations.
BHP's total economic contribution in Australia was A$79.3 billion in FY2022, including A$16.5 billion in payments made to suppliers for the purchase of utilities, goods and services.
