BHP throws lifeline to mining supply chain

BHP Olympic Dam. Image: BHP

BHP will reduce payment terms for small, local and Indigenous businesses to support communities around Australia during the coronavirus pandemic.

The major miner will immediately pay outstanding invoices, quickly delivering more than $100 million to its small business partners.

BHP will also reduce payment terms from 30 days to seven days for more than 1100 small Australian businesses.

The shorter payment terms will take effect from next week, with eligible small businesses to be contacted by BHP in the coming days.

BHP chief executive Mike Henry said looking after the well-being and safety of its people, communities and partners was the company’s highest priority.

“We are taking action to reduce the risk of transmission at our sites, in our offices and in our communities,” Henry said.

“Our local and small business partners play a critical role in supporting our operations and our people, and we know this is a very difficult time for them. We must look out for each other as we manage through this together.”

BHP has also created a $6 million fund to support labour hire companies. The fund will be used for one-off payments for people quarantined after entering Australia and pay for labour hire employees affected by COVID-19 that are not entitled to sick leave.

To keep up to date with Australian Mining, subscribe to our free email newsletters delivered straight to your inbox. Click here.