Locally sourcing content, a code of practice

As coal miners continue to cut jobs and undertake operational spending reviews, mining body Queensland Resources Council has designed a guide to help companies allocate regional funding.

The guide is a code of practice for local content and was compiled with the help of Australian Industry Group and Australian Steel Institute, as well as a number of resource companies.

It is designed to assist companies in proving a “full, fair and reasonable opportunity for capable local industry to compete for the supply of goods and services for significant projects”.

Voluntary and self regulated, the implementation guide states that a strong local supply chain is critical for the efficient operation of resource companies.

QRC chief Michael Roche said it also allows companies to easily connect with regional suppliers and urges miners to consider local suppliers first.

The idea is using locally sourced content in the mines supports regional business and provides a boost to local economies.

According to the QRC, in the 2011-12 financial year, Queensland's resources sector spent $20.5 billion on manufacturing, construction, transport and professional utilities.

But this year is proving to be a tough one for the coal sector, particularly in Queensland where Peabody Energy has laid off over 400 contractor jobs across its coal mines in a bid to conduct a ‘repositioning and improvement program’ to reduce costs.

Glencore Xstrata in June announced it would be slashing 450 workers from its Newlands and Oaky Creek coalmines in the Bowen Basin.

Hastings Deering axed 200 jobs across its Rockhampton and Mackay sites, attributing it to the mining slowdown.

Downer has also announced is it cutting 185 jobs from BMA’s Goonyella Riverside coal mine in Moranbah.

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