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At a sold-out Moranbah luncheon last week, Bowen Basin Mining Club members were offered a timely insight into BHP Billiton’s global focus on production efficiencies and changing supply management practices.
Rag Udd, Asset President, BHP Billiton Mitsubishi Alliance
BHP Billiton Mitsubishi Alliance (BMA) Asset President Rag Udd spoke to 220 luncheon attendees about the continuing demand for the Bowen Basin’s high quality metallurgical coal and the company’s increasing focus on productivity, particularly when it comes to their supply chain.
Mr Udd highlighted total cost ownership as a guiding principle of BMA’s supply chain, with unit cost as the driver of value not just for operations management, but also supply.
“As a company, we don’t need suppliers to be selling us new equipment. We want suppliers to tell us how they can help us be more effective with the equipment we already have,” said Mr Udd.
As Central Queensland’s largest private sector employer and the world’s largest supplier of seaborne metallurgical coal, BMA is projecting continuing demand for the Bowen Basin’s coal, in line with recent predictions from the Queensland Resources Council of an upturn in the coal price.
“There will be a period of at least five years before demand for coal is greater than supply, but the time between now and then is where we figure out what differentiates us from our competitors, and where we figure out how to thrive in the ‘new normal’,” said Mr Udd.
Mr Udd was joined on a panel with Sundeep Singh, BHP Billiton Vice President Supply Minerals Australia, and Steve Collins, BHP Billiton Acting Head of Supply Coal, and emphasised the new focus on building partnerships between BMA and their suppliers, both those in the Local Buy program and suppliers who are new to doing business with BMA.
“Initiatives like e-auctions are allowing new businesses to get their foot in the door of doing business with us, and focusing on total cost ownership perspective in those new relationships means we are getting better together with our suppliers,” said Mr Singh.
Bowen Basin Mining Club Director Jodie Currie says it’s promising to see a mining company on BMA’s scale levelling with suppliers and taking a transparent approach to supply chain practices and the future of supply.
“It’s been demonstrated for some time now that the contractors and suppliers who innovate are the ones who maintain successful, long-term relationships with their clients,” said Ms Currie.
“To hear senior executives from BHP Billiton and BMA come out and plainly tell suppliers to approach them with productivity-boosting ideas sends a clear message – to cut through the noise, you must differentiate your offering and clearly explain how you ultimately save time and cost.”
About the Bowen Basin Mining Club
The Bowen Basin Mining Club has been established to open the communication pipeline across all facets of the resource sector. Our networking events are hosted in Mackay, Moranbah and Emerald and are structured to invite key personnel from mining companies to share important announcements, project updates, supply chain information or relevant topic of interest to our members. Membership is free and available via the website www.bbminingclub.com
