Olympic Dam aims to more than double work for local small businesses
Small businesses can bid for millions of dollars’ work at the massive Olympic Dam mine under a program to support locals.
BHP has set a target of more than doubling the work it contracts to small businesses in the Olympic Dam region.
Under a Local Buying Program, BHP encourages local businesses with fewer than 20 employees to bid for small work packages.
Last financial year, $2.5 million of work was awarded under the program.
“Our aim for 2019-20 is to achieve total spend of $6 million through the program,” Olympic Dam’s head of supply Nathan Flaman said.
“We have made a positive start to our Local Buying Program in South Australia, but we would like to do more to strengthen our contribution to the economies of the Upper Spencer Gulf and Roxby Downs.”
A variety of work at the copper, gold and uranium mine in SA’s Far North is covered by the program including small metal fabrication jobs, equipment maintenance, equipment hire, earthmoving, accommodation and catering.
The small business program is part of Olympic Dam’s overall spending with South Australian companies which totalled $130 million last year, 20 per cent higher than the year before, Mr Flaman said.
In another initiative to support local communities, BHP this month joined 16 other companies including Microsoft, Rio Tinto, Qantas and Telstra to set a target of at least 3 per cent of its Australian work contracts to be awarded to indigenous businesses.
“We know our supply chain has the potential to make long-lasting change to the communities that surround our operations and we understand that we have a responsibility to create opportunity,” Mr Flaman told the Global Maintenance Upper Spencer Gulf conference in Port Pirie.
Also speaking at the conference, SA Chamber of Mines and Energy chief executive Rebecca Knol highlighted the mining industry’s critical role in the economy.
“When the resources industry does well, SA does well,” she said.
Mr Flaman said Olympic Dam was planning a major smelter maintenance project in 2021.
The last such project, in 2017-18, involved more than 350 vendors and contractors and cost the company $650 million.
“We nearly doubled the workforce on site which meant more clothes being laundered, more meals to feed our site crews, increased land and air transport, more accommodation — the works,” he said.
He also highlighted exploration results at Oak Dam, 65km south of Roxby Downs, which — unusually — were given special mention in BHP’s annual financial results last week.
“Our exploration team has now completed the second phase of drilling at Oak Dam and we’re evaluating the results,” Mr Flaman said.
“Once finalised later in the year, we look forward to updating everyone.”