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Event Wrap: Networking Luncheon with Glencore

20 September 2022 | BBMC Events

Glencore’s Group Procurement Manager, Darren Oliver, addressed the importance of staying proud of the coal industry at the Bowen Basin’s Mining Club’s bi-monthly luncheon event last week.

Mr Oliver firstly thanked the suppliers and contractors of the Bowen Basin for their unwavering support of Glencore’s operations over the ‘perfect storm’ of the last two years. Glencore acknowledged that close partnerships with local suppliers kept operations producing coal safely and efficiently when pandemic restrictions, supply constraints and freight shortages became the ‘new normal’.

Contributing strongly to the Australian economy

As a company who has weathered the storm of the pandemic, Glencore’s 2021 contribution of $27 billion in total economic activity is significant. Queensland’s economy benefited from $9 billion, with 27,860 direct and flow-on jobs, and 3,240 suppliers with an annual spend of $3.2 billion.

Suppliers and staffing – critical in responsible procurement

However, those suppliers, along with the rest of the procurement landscape, are still undergoing radical disruption. Geopolitical instability is causing massive supply chain and logistics problems, while domestically, issues including rising electricity costs affect all aspects of operations. But maintaining and building the supply of good people is at the forefront of management’s focus. Glencore’s deep-rooted culture of upskilling and innovation in employee programs is making a massive difference within the company, but staffing remains front-of-mind for management.

Glencore recently released its updated policy for responsible sourcing. As early adopters, Glencore’s Australian operations show considerable maturity in managing ESG compliance. The company’s Supplier Due Diligence processes are currently being updated and refined as global policy and regulation changes – but in the name of not overloading suppliers with requests for information, a ‘risk-based approach’ will direct supplier due diligence.

Despite facing the same pressures from financial, insurance and shareholder interests as other enterprises whose main business is associated with fossil fuels, Mr Oliver asserted Glencore’s commitment to the long term, and Glencore’s continued support of suppliers who support them.

Building a sustainable pathway to the future

Glencore’s ambitious global target is to achieve a net-zero business by 2050. Continuing through rapidly changing times, Glencore is taking ‘substantial and public steps’ down its ‘decarbonisation pathway’. While it may seem an oxymoron for a coal producer to talk about carbon reduction, Mr Oliver reiterated the ways in which Glencore will both manage its footprint and contribute towards global decarbonisation, while continuing to supply high-quality energy to global customers.

What’s on the horizon for Glencore in the Bowen Basin?

In the Bowen Basin, Glencore is pursuing approvals for the greenfield Valeria Project near Emerald. Planning for first coal in 2028, the open-cut mine could potentially supply 20 million tonnes of world-class thermal coal for approximately 37 years, with a significant contribution to maintaining the economy of the Central Highlands.

After a 40-year life Newlands Mine will stop producing and washing coal in 2023, but rehabilitation activity is planned to continue through 2042. And at Milmerran Power Station in the Surat Basin, a $210M test injection project is well underway with Glencore subsidiary company CTSCo to demonstrate the viability of carbon capture, transport and permanent storage innovations.

Mr Oliver encouraged current and potential suppliers to build relationships with local Glencore operations, who have significant autonomy in procurement for their operations, supported by the corporate team and national partners. While safety is always paramount, Glencore are always open to innovative ideas and new technology, particularly around carbon abatement and mining applications for robotic and technical innovations.

Be proud of your coal industry

In closing, Mr Oliver encouraged the audience with two imperatives going forward – to ‘maintain shareholder trust and to be proud of your coal industry’ – knowing that we face challenges but that we’re able to contribute meaningfully to our communities for many years to come.