BBMC May 2025

Industry leaders share frank insights on surviving and thriving

Senior mining executives delivered candid advice on navigating current market pressures at the Bowen Basin Mining Club’s (BBMC) May networking luncheon in Mackay. The panel of senior leaders from Glencore, Whitehaven Coal and Mastermyne focused on building lasting supply chain partnerships through good times and tougher times.

With coal prices under pressure and cost escalation, BBMC Director Jodie Currie said the panel’s candid insights provided exactly the type of practical guidance the mining community needs during challenging times.

“The panel didn’t sugar-coat the issues, but showed there are real opportunities for suppliers who can demonstrate value, innovation, and commitment to long-term partnerships,” Currie said. “The message was clear – this is a cyclical industry, and the suppliers who invest in relationships and bring genuine solutions during the tough times are the ones who will also thrive when conditions improve.”

Building value beyond price cuts

Parry Moore, Procurement Manager for Glencore Coal Assets Australia, emphasised that successful partnerships require more than simple cost reductions.

“Our DNA is that we are an engineering business that safely produces coal, so in procurement we are here to support the business in making the right engineering decisions at the right time. Focusing on the efficient use of resources and productivities. Our relationship with suppliers is inter-dependent. We rely on you to provide us with high quality and cost-competitive goods and services, and you rely on us to keep buying. As such, it makes sense for us to seek long-term partnerships where we clearly understand each other’s needs.”

Moore highlighted how Glencore works with suppliers to find innovative solutions, citing a recent example where a vendor conducted an operational audit at Hail Creek mine. “They got out there on the shop floor, interacted with their staff and our team, and came up with recommendations on how they could be more efficient. It’s not a straight rate drop, but they’re looking at optimising their service under the current contract.”

He also stressed the importance of high-quality tender submissions. “We try to make tenders as simple as possible, but I see many vendors waiting for that tender to come out, and then the quality of their submission is poor. I recommend suppliers invest time with estimating, legal, commercial and technical departments because there may not be another tender opportunity for three to five years.”

Regional focus and collaborative partnerships

Sean Milfull, General Manager at Whitehaven Coal’s Daunia mine, highlighted the importance of regional suppliers and collaborative relationships during challenging periods.

“In these tough times, we’re in it together. There’s a lot of smart people in this room that can help us get through this well,” Milfull said, noting Whitehaven had set a significant cost reduction target for the financial year across their Queensland operations.

Milfull emphasised Whitehaven’s commitment to regional suppliers: “As a General Manager, if an engineering project comes across the table and I don’t see a regional supplier as one of the options, I’ll send it back and ask them to re-look for options from our region. It’s that important.”

Milfull, who recently transitioned from Queensland to lead Whitehaven’s New South Wales operations, spoke about opportunities to share learnings across the company’s geographic footprint. “We’re going to look at the greater business – the opportunities are enormous because we’re doing some good stuff in Queensland and NSW has decades of experience to share.”

Innovation and long-term thinking

Jeff Whiteman, Chief Executive Officer and Managing Director of Mastermyne, representing the contractor perspective, urged suppliers to bring innovative, value-added solutions rather than waiting for mining companies to initiate contact.

“From adversity comes opportunity, and it’s really down to companies to respond to current challenges,” he said. “In this market you’ve got to be agile and flexible to meet client’s needs. This is really about building a long-term relationship.”

Jeff highlighted examples of Mastermyne’s recent innovations in underground mining, including remote polymeric emergency sealing solutions and totally paperless training compliance systems.

Technology trends and future opportunities

The discussion touched on emerging technologies reshaping the mining supply chain, with autonomous operations, artificial intelligence, and decarbonisation initiatives creating new supplier opportunities.

Moore noted Glencore’s focus on cost accountability and innovation platforms: Platforms exist for our suppliers to challenge the status quo by reviewing existing processes and identifying opportunities for continuous improvement through new product innovation, labour and service efficiencies. However, this must be undertaken without any resulting risk to our business or the suppliers operating integrity.

Decarbonisation as opportunity

The panel addressed decarbonisation not as a burden but as an opportunity for innovative suppliers to develop solutions that improve operational efficiency while reducing emissions.

“We’ve made commitments as a business to reduce our Scope 1 emissions. The immediate focus for Whitehaven is operational efficiencies – looking at the mine plan, making sure we’re designing for productivity, and maximising the use of our gear,” Milfull explained.

Moore added that  Glencore is “very interested in initiatives that can reduce our overall greenhouse gas emissions footprint.”

Industry resilience and pride

Despite current market challenges, the panel reinforced the long-term outlook for coal and the importance of maintaining industry pride during difficult periods.

“We should also remind ourselves to be proud of our coal industry. Yes, times are tough, and coal continues to face challenges, but our sector still makes a major contribution to Australia, to Queensland, and here in Mackay and will continue to do so for many years to come,” Moore concluded.

Milfull reflected on suppliers who have grown with the industry: “I look at contractors I’ve seen grow over 25-30 years in the industry. The key ingredients to success have been trust, curiosity, that desire to deliver a superior product or service, and the ability to ride through the tough times. When it’s tough, they come with you and wear the pain, but we all get through it.”

The next BBMC networking luncheon will be held in Mackay on Wednesday July 30. Tickets will go on sale next week.