Anglo American is formally moving to a 30-day payment policy for small- and medium-sized businesses in Australia.
Tyler Mitchelson, Anglo American metallurgical coal chief executive officer, said the announcement formalised an existing practice within the company’s Australian operations in a clear demonstration of support for regional businesses.
“Anglo American has long recognised the need for a localised approach to procurement in the regional areas where we operate, and we are pleased to provide additional certainty to our small- and medium-sized business suppliers through clarifying our current practice of 30-day payment terms,” Mitchelson said.
“We value our relationships with supplier partners and will continue to work closely with them to ensure we deliver sustainable economic outcomes for our communities.”
Anglo American last year launched a global sustainability strategy that focused on making a strategic and holistic positive impact on how its stakeholders experienced the business.
“Our business practices for supplier payment terms demonstrate one way we are achieving this,” Mitchelson said.
“Last year, around 73 per cent of our total procurement spend for our Australian operations occurred within Queensland.”
BHP this week also confirmed it had changed its procurement policies for suppliers, extending preferred payment terms of 30 days to all Australian businesses in local areas.
The BHP change means that more than 600 local businesses in Queensland and 300 local businesses in New South Wales will receive preferential payment terms from December 1.