Cleveland Cascades LtdBühler GmbHPort of South LouisianaTOC EventsPort of StocktonVan Aalst
  • Multimodal 2022
  • The Wolfson Centre for Bulk Solids Handling Technology
  • Van Aalst
  • TOC Events
  • Port of Stockton
  • Telestack

BHP’s reduced payment terms aid helped suppliers

BHP’s reduced payment terms aid helped suppliers

(Posted on 18/05/20)

Shorter payment terms have given BHP’s suppliers the flexibility and cash flow to remain in business despite the economic toll inflicted by the coronavirus pandemic.

Aqueous Consulting, Structural Integrity Engineering and Jarah Corporate have provided their services to BHP for a combined total of 28 years and are among the beneficiaries of BHP’s move to pay all outstanding invoices and reduce payment terms from 30 days down to seven.

Our small, local and indigenous businesses play a critical role in supporting our operations and we depend on their ongoing success and prosperity. We estimate that our accelerated payment program will put $100 million directly into the pockets of our small business partners, and we’re starting the see the benefits of the reduced payment terms flowing through to our local suppliers.

Aqueous Consulting is a three-person business in Perth who have been providing its water engineering services to our iron ore operations for over five years.

Shane Farquharson, Director and Principal Engineer at Aqueous Consulting said the new commercial arrangements came as a welcome relief to the business.

“The change to shorter payment terms came totally unexpected but it’s been a significant help to our cash flow as we rely on other sub-consultants to deliver our services”, he said.

“This has significantly reduced the stresses of operating a small business and it also allows us to pursue additional opportunities in this uncertain market”.

Doug Hawkes, Managing Director of consulting firm Structural Integrity Engineering has also welcomed the shortened payment terms.

With a presence in Brisbane, Perth and Newcastle, Structural Integrity Engineering has been providing their risk management services to BHP’s operations for over 20 years. Doug said the reduced payment terms have given the business more flexibility.

“The COVID-19 outbreak has been a worrying period for the business”, he said.

“Cash is king, and having the money in the bank earlier has allowed us extra flexibility, which goes a long way to ensuring our eight employees remain employed throughout these challenging times”.

For Jarah Corporate, a small health, safety, training and risk management business in Brisbane, cash flow was also a concern.

Jarah Corporate has provided expert training assistance to our coal sites across Queensland for three years, and Director Anthony Beasley said the new payment terms have given the business some extra breathing space.

“The proactive approach to fast-track payments has helped alleviate our concerns related to cash flow”, Anthony said.

“It not only allows us to breathe a bit easier and continue our new version of business as usual in the current global environment, but it’s given us a bit more freedom to cast our eyes toward the future”.

Latest News

First ore delivered at Rio Tinto Gudai-Darri mine in the Pilbara

(Posted on 20/06/22)

Rio Tinto has delivered first ore from the Gudai-Darri iron ore mine as the company brings online its... Read more


British Steel pressing ahead with £26 million investment

(Posted on 20/06/22)

British Steel has been given planning approval for a £26 million upgrade to its Special Profiles... Read more


Trafigura strong in testing times

(Posted on 12/06/22)

Trafigura Group Pte. Ltd, a market leader in the global commodities industry, released its half year... Read more


MoU to study using Rio Tinto iron ore in green steelmaking

(Posted on 08/06/22)

Rio Tinto and the Salzgitter Group have signed a Memorandum of Understanding (MOU) to work together... Read more


Bunge surpasses South American non-deforestation and sustainability targets

(Posted on 03/06/22)

Bunge has announced that it has exceeded its non-deforestation targets for monitoring and traceability... Read more


British Steel launches green hydrogen feasibility study

(Posted on 31/05/22)

British Steel is conducting a major study into the use of green hydrogen in the company’s drive... Read more


Trafigura makes further commitment to First Movers Coalition

(Posted on 25/05/22)

Trafigura Group Pte Ltd., a market leader in the global commodities industry, has made a new commitment... Read more


BHP inaugurates a new copper concentrator in Spence

(Posted on 18/05/22)

BHP CEO Mike Henry has led the opening of Spence's new copper concentrator plant.The project required... Read more


Schenck Process announces mining business sale to Sandvik

(Posted on 12/05/22)

Schenck Process, a global company for sustainable, integrated measuring and process technology solutions... Read more


BHP completes the divestment of its BMC interest

(Posted on 05/05/22)

BHP has completed the sale of its 80 per cent interest in BHP Mitsui Coal (BMC) to Stanmore SMC Holdings... Read more


Multimodal 2022TBA GroupCimbriaSailors SocietyThe Wolfson Centre for Bulk Solids Handling Technology Vigan
  • Vigan
  • Sailors Society
  • TBA Group
  • Cleveland Cascades Ltd

Subscribe to our newsletter

Keep up to date with the latest global news in bulk cargo handling and shipping