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BHP’s local procurement reaches $1 billion milestone

BHP’s Local Buying Program has reached a $1 billion milestone for procurement with small, local, and Indigenous businesses across regional Australia since its launch in 2012. 

The mining giant says its program has helped almost 1,600 small businesses join the BHP supply chain, involving over 67,000 work packages. 

BHP’s 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 seven-day payment terms or less. 

The success of the program has seen it expand to all of 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.

BHP President Minerals Australia, Geraldine Slattery said: “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.

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