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Event Wrap: BBMC Luncheon May 2023

15 June 2023 | BBMC Events

The future of the mining supply chain is people

Procurement and supply chain leaders from Stanmore, Anglo American and Bravus Mining & Resources led a sold-out panel discussion at this month’s Bowen Basin Mining Club event in Mackay.

Topics ranged from post-COVID operating norms to regional policy, decarbonisation and the future of resource supply chain – with a lively discussion between companies and suppliers in the rooms.

The biggest unexpected factor in demand was the emphasis on skills and people to ensure a strong future for the resources industry’s next few decades of operations in a decarbonising world.

Peter Mifsud, Head of Commercial for Bravus Mining & Resources, says the mining industry needs to change popular rhetoric around the industry’s future to win the war for talent.

“Coal mines have long asset lives – even with a transition towards sustainable energy in developed markets, we’re talking decades of remaining demand for both thermal and metallurgical coal. We need to be winning hearts and minds of the next generation to show them there’s a future in the mining industry for their entire career.”

But it’s not just about people as employees – people as suppliers bring valuable ideas and innovations to the table. This is proving to be a hallmark of the industry, particularly in previous years as suppliers helped companies to navigate the supply chain complexities that came with the COVID pandemic.

Paul Davis, Regional Procurement Manager from Anglo American, says suppliers stepped up during the pandemic to help simplify supply chain complexity.

“I don’t think we fully appreciated the complexity of supply chain pre-COVID – take cars and microchips for example, and the incredible delays in vehicle supply at the moment. To be effective and find your way around sticky situations, you have to know your suppliers and also your suppliers’ suppliers, and where that chain goes.”

According to Luiz Sapucaia, Stanmore’s General Manager Supply, people are also what makes the difference in long-term supplier relationships.

“Partnership is so important – if a vendor can deliver and is happy to work with you for the long run, it’s far more economical and sustainable to form that long-term partnership rather than jumping from contract to contract to get the best price.”

And on the challenge of identifying and developing local capability, Mr Sapucaia says it’s about re- framing challenges like labour shortages, shipping delays or even wider trends like decarbonisation as an opportunity, rather than a threat.

“Challenges and shortages help us to identify gaps in our supply chain, and we’ve seen very capable local vendors fill those gaps. But when it comes to decarbonisation, we really need to see the innovation come through from local suppliers beyond just the usual solar panels or alternative fuels. The answers are out there in our supply chain, and we want to be having those conversations about how to move forward with our suppliers.”

Finally, those looking to get a foot in the industry’s door need to realise that while mining companies may seem like giant conglomerates, there’s people at the other end of the phone or behind the vendor platforms.

Peter Mifsud has a solution: find a champion who’s willing to help your best-in-class solutions move across sites.

“Performance talks – find someone who’s willing to help based on your performance. Offer initiatives and ideas to get other sites interested, and be a poster child where you are.”

Mr Davis agreed saying, “If you can demonstrate best practice on one site, as a company we’re always looking to develop agility so stick to your knitting and do what you do well – the rest will follow.”

The next Bowen Basin Mining Club luncheon will be held on Thursday July 13 in Rockhampton, with Ian Macfarlane of the Queensland Resources Council and Nick Jorss of Bowen Coking Coal
presenting. Tickets are on sale now via www.bbminingclub.com.au.