The Local Buying Program provides a direct link between Australia’s biggest business and eligible small, local businesses with annual turnover of <AUD$10M, making great things happen in the regions in which BHP operates!
Who can participate in the Local Buying Program?
Businesses are required to meet a number of minimum mandatory qualification criteria prior to being assessed and approved as a ‘Local Buying Program’ Supplier by C-Res. Criteria includes:
- Must be a business with an annual turnover of <AUD$10M
- Must have a significant physical presence in an eligible Local Buying Program area (see region-specific pages for information on eligible regions).* Significant physical presence must meet all of the following conditions:
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- The business operates from a location within an eligible area
- In this location, the business operates from a permanent location or establishment
- The personnel employed at this location are residents of the local area
- The operation is used to provide functions that are core to the services the business provides to BHP
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- Must have an ABN and be registered for GST (if required)
- Mandatory Insurances – Must have appropriate insurances including Workers Compensation (if an Employer) and a minimum of $10M Public Liability. Certificates of Currency must be provided. Tax Invoices are not accepted
- Must provide goods or services aligned with the BHP Global Supply goods and services categories (see list below)
- Must have the appropriate personnel, management and financial capacity to deliver goods and services to BHP/BMA (whichever is applicable)
- Must agree to the LBP Purchase Order Terms and Conditions
- Must demonstrate alignment with BHP Purpose and Charter, Code of Business Conduct, and BHP Minimum Requirement for Suppliers
- Must agree to and comply with BHP Modern Slavery Statement
Suppliers who carry out services for BHP and/or BMA will need to meet additional requirements prior to undertaking approved work. Suppliers may also be required to have additional mandatory insurances/policies and procedures for the goods/services they provide and will need to be able to provide these on request.
Are there any exemptions to the above criteria?
BHP may, from time to time, exempt an identified Traditional Owner business that is 50% or more owned by a Traditional Owner as defined in an ILUA or other formal agreement to which BHP and the owner(s) are party to from the above outlined criteria.
Exemption 1: Traditional Owner and Indigenous businesses with less than AUD$10M turnover, may be exempt from having a significant physical presence in specified areas but must support their local Aboriginal community.
Exemption 2: BHP may allow Traditional Owner and Indigenous businesses that don’t meet the standard criteria to join the Local Buying Program on a trial basis. C-Res can propose these exemptions, but approval is solely at BHP’s discretion and must be in writing.
Which Operations can businesses supply to?
In Australia, all BHP Minerals Australia core asset operations, including both existing operations and growth projects, are able to source suppliers through the Local Buying Program.
This includes operations and projects at the following assets:
- BHP Mitsubishi Alliance (BMA) in Queensland
- NSW Energy Coal in New South Wales
- Western Australia Iron Ore in Western Australia
- Nickel West in Western Australia (in Oct 2024, BHP temporarily suspended operations and will review the decision by Feb 2027)
- Copper South Australia
For a detailed list of all the operations, please see the relevant region specific page.
What are the Categories?
The Local Buying Program is not limited to certain categories and covers a broad and diverse range of goods and services.
Any Work Instruction can be issued via the Program as long as its value is less than US$2 million p.a. and no existing BHP supply / service agreement exists.