Engineering consultancy AIE is one of 273 Western Australian small business suppliers to have benefitted from BHP’s local buying program since 2017, with the mining giant spending $38 million in WA through the initiative.
Engineering consultancy AIE is one of 273 Western Australian small business suppliers to have benefitted from BHP’s local buying program, with the mining giant spending $38 million in WA through the initiative since 2017.
The program, first established in Queensland in 2012 and managed by BHP partner C-Res, makes it easier for small business owners to bid for supply opportunities through streamlined onboarding, procurement and payment process, which includes 21-day payment terms.
AIE managing director Kale Billett said the company had sourced 56 work orders through the local buying program over the past two years, including for concrete condition audits on critical infrastructure, and project management of stacker, reclaimer and shiploader rail systems.
“Continued support from BHP and C-Res has helped our business grow to 10 people since our first contract with the local buying program and we now have people based in Port Hedland, Perth and Newcastle,” Mr Billett said.
“Our ultimate goal is to build a multidisciplinary engineering consultancy in Port Hedland and a steady stream of work from BHP will help us achieve that goal.”
The Chamber of Minerals and Energy of Western Australia chief executive Paul Everingham said BHP’s local buying program was a good example of WA resources companies working with small business owners to support the local communities where they operate.
“With COVID-19 severely impacting small businesses across the state, initiatives such as BHP’s local buying program will be a lifeline to local suppliers and create employment opportunities in regional communities,” Mr Everingham said.
“By spending locally the resource sector promotes the long-term sustainability of local economies and builds partnerships with communities through mutually beneficial relationships.”
Across Australia, the program has given work to 1,450 local businesses on 36,000 jobs and invested $500 million since 2012.
BHP president Minerals Australia Edgar Basto said the local buying program had increased capability across the local supply chain and boosted regional economic development in BHP’s host communities.
“The program has grown from supporting our Queensland operations in 2012 to now supporting our operations in WA, SA, and NSW,” Mr Basto said.
“It is more important than ever in the current environment, and is growing at the fastest rate since its inception, with half the $500 million committed in the previous two years alone.”
