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Event Wrap: BBMC Luncheon February 2024

14 February 2024 | BBMC Events

BMA speeds into the future, with local partnerships as the fuel in the tank

At the first sold-out Bowen Basin Mining Club luncheon event for 2024, BMA Head of Procurement Jessica Simpson updated businesses directly on BMA’s strategic direction.

Ms Simpson started by reiterating the message BMA made the last time she addressed the BBMC in May 2021, as the industry worked through the pandemic recovery phase. The strong message is that continuing robust local collaboration and partnership is still the direction to follow for future stability and growth.

“The last time I was here, I told stories of people who helped us get through the pandemic, and how collaborating with our supply chain was key to that period and into the future. That hasn’t changed, and it’s still the direction we need to go.”

Safety
Ms Simpson noted safety is a non-competitive space and she appealed for innovators with ideas to come forward. She cited a recent example of safety innovation in a local partnership with BHP Goonyella’s maintenance and tyre bay team. The tyre rim lock solution eliminates risk, with operators employing a new retainer bolt while changing large tyres. The invention won the BHP’s Global Safety Award in 2023.

“There is nothing more important than the safety of every employee, contractor and supplier who works on our operations, for our operations and travels on our roads.”

Performance
Ms Simpson took the opportunity to update the audience on BHP’s half-year results. Overall, BHP enjoyed a solid first half, with strong performance in iron ore, copper, and energy coal, but a challenging landscape for met coal. Lower production was the result of a significant increase in planned maintenance and an extended longwall move. Production was also impacted by an increase in prime stripping to improve supply chain stability off the back of wet weather and labour issues last year.

“I am proud, within that operating environment, that BMA continued to have strong success in our economic and value contributions. Last year BMA spent over $1 billion locally, and we are on track to exceed that this financial year.”

BHP’s purpose is bringing resources and people together to build a better world, and their strategy remains unchanged – to have the best assets, in the best commodities supported by the best capabilities.

Working collectively
The demand outlook for minerals remains strong, but to successfully respond to world demands, Ms Simpson says we have to work collectively to achieve common goals.

High quality met coal will remain desirable for decades to come. Ms Simpson explained that “to harness that opportunity, BMA is in the midst of navigating a transition to emerge in the north stronger, and set the foundation to become the safest, lowest cost, and industry-leading high-quality metcoal producer. We are on the journey to build a better BMA, in safety, culture and performance.”

‘Voice of Vendor’ workshops underway
While there are well-known headwinds facing the industry, stability is particularly important to BMA. The government’s policy on royalties makes it a challenge to remain competitive, but Ms Simpson noted that suppliers’ knowledge and capabilities are crucial to building stability. To address this, she explained that the company is running an extensive series of ‘Voice of Vendor’ open conversations to explore how BMA and suppliers can improve how they work together – and nothing’s off the table.

“The leadership team and I are confident that if we have a strong commitment to collaboration, we’ll be able to be safer, more efficient, more sustainable and more agile. I want to encourage you all – if you see waste, or a better way of doing things, tell us!”

The luncheon wrapped up with an extensive engagement session in which Jessica and her team spent time with many of the suppliers in the room, one-on-one.

The second Bowen Basin Mining Club event for 2024 will be held on 21 March, featuring Anglo American as keynote speakers.

Book tickets via www.bbminingclub.com.