Glencore’s growing community footprint in the Bowen Basin impacted 1400 companies. Joshua Harris, Procurement Manager with Glencore’s Australian coal business, revealed the impressive results of intensive internal research to an industry meeting in Mackay last week.
He revealed that suppliers represented in the room accounted for almost a billion dollars of direct spend by the coal business in 2018.
Although Glencore has been operating in Australia for 20 years until recently there was only a superficial understanding of the company’s relevance to the everyday lives of the communities where Glencore operates.
“We’ve undergone a major change in mindset as a result of our research. We understand and accept that to help maintain our social licence to operate, we need to better demonstrate our contributions to communities.”
Drilling down to postcode level, data was mined across Glencore’s geographical spread and aggregated at local government, regional, state and national levels. The resulting numbers took many by surprise, including the fact that Glencore buys goods and services from more than 1400 companies in the Bowen Basin, almost 1000 of these in the Mackay LGA.
Glencore community footprint finds opportunities for local suppliers
Mr Harris also provided a snapshot of the Glencore coal business’s Community Investment program, under which 40-plus community partners in health, environment and education benefit from almost $5 million invested annually in Queensland and NSW.
Mr Harris detailed Glencore’s procurement and payment processes, emphasising the autonomy of each site in a decentralised structure to do business locally wherever possible.
Stasia Willoughby, Contracts Co-ordinator at Hail Creek Mine, Glencore’s 2018 acquisition, also outlined the next 18 months of planned development for the site.
Terracing will replace dragline operations, and expansion operations along the Eastern Margin of the site are about to commence tenders for early works. Both initiatives will result in significant cost savings, and major opportunities will be available for contractors and suppliers.
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