The Local Buying Program provides a direct link between Australia’s biggest business and the small businesses, with 20 FTE or fewer, 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’ supplier by C-Res. Criteria includes:
- Must employ less than 20 full-time equivalent employees (not including casual staff, subcontractors, trainees, or apprentices)
- 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:
- 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
- Must have an ABN and be registered for GST (if required)
- Must have appropriate insurances including Workers Compensation (if an Employer) and Public Liability (mandatory)
- 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 / BMC (whichever is applicable)
- Must agree to the LBP Purchase Order Terms and Conditions
- Must demonstrate alignment with BHP Purpose and Charter and Code of Business Conduct
Suppliers who carry out services at BHP / BMA / BMC operations 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: Aboriginal Traditional Owner businesses, with less than 20 full time equivalent employees, may not be required to have a significant physical presence in the eligible regions.
Exemption 2: There may be instances where a Traditional Owner or Indigenous business does not meet the standard qualification criteria or exemption 1, however BHP supports their entry to the Program, potentially on a trial period.
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) and BHP Billiton Mitsui Coal (BMC) in Queensland
- NSW Energy Coal in New South Wales
- Western Australia Iron Ore in Western Australia
- Western Australia Petroleum in Western Australia
- Olympic Dam in South Australia.
For a detailed list of all the operations and projects by asset, 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.