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Accelerated Discovery Initiative ¦ 2019 Copper to the World conference ¦ Geological Survey of South Australia Discovery Day 2019

Upper Spencer Gulf in the spotlight

Premier’s Awards recognise excellence in local procurement.

The Premier’s Awards in Energy and Mining recognise excellence demonstrated by leading South Australian resources, mining equipment, technology and services (METS) and energy sector companies.

Ahead of the imminent call for entries for the upcoming Premier’s Awards we reflect on two of the 2018 winners – companies who are working with local communities to provide grassroots economic growth, support livelihoods and enable small businesses to flourish.

The projects are helping to strengthen local economies and share wealth generation opportunities in the Upper Spencer Gulf, a backbone region of South Australia.

These types of opportunities are welcomed by the Upper Spencer Gulf Common Purpose Group, comprised of the three Upper Spencer Gulf cities of Port Pirie, Port Augusta and Whyalla, expressing, ‘the Upper Spencer Gulf is ideally located to provide a range of services to prospective mining projects’.

BHP Olympic Dam and C-Res’ Local Buying Program

Winner: METS sector: Excellence in Working with Communities

BHP Olympic Dam and C-Res’ Local Buying Program sets a high standard not only for the METS and resources sectors, but also for all large-scale companies operating in South Australia.

‘We know how important local communities are, and for those communities to be healthy and vibrant’, said Nathan Flaman, Head of Supply for BHP.

‘For that to happen you need strong local businesses.

‘After seeing the results achieved by BHP’s Local Buying Program in Queensland, we launched the program in South Australia to target small local businesses in the Upper Spencer Gulf and Roxby Downs.

‘We have partnered with C-Res, a non-profit organisation, and they run a website portal where local businesses can register. This is new investment, in local communities, in a timely manner that recognises the importance of cash flow to local businesses’, he said.

A C-Res business engagement adviser in Roxby Downs offers direct support to local businesses, backed by a program administration team.

Figure 1 Approved businesses per town (to April 2019) servicing BHP Olympic Dam and C-Res’ Local Buying Program.
Figure 1 Approved businesses per town (to April 2019) servicing BHP Olympic Dam and C-Res’ Local Buying Program.

Since opening in October 2017, the program has delivered over 379 new work opportunities involving 85 approved businesses (Fig. 1). Total spending is over $3.2 million (to April 2019), with an average payment time of 12 days.

Local businesses have provided services and goods including freight and logistics, maintenance and repair hardware, training, office supplies and other consumables.

Local business Australian Supply Group, based in Roxby Downs, has won opportunities to supply BHP through the Local Buying Program. Business owner, Adrian Callisto, said ‘It’s an absolute pleasure using the LBP. The portal is very effective and easy to use. BHP buyers are beginning to gain momentum with releasing requests for quotations via the program. Lastly, and most importantly, the program helps with our cash flow’.

Tracey Cuttriss-Smith, Chief Executive Officer of C-Res, said ‘We look forward to even more fantastic outcomes as the local buying program continues to grow in South Australia’.

See what opportunities exist for your business

Watch the project video

OZ Minerals and GMUSG Carrapateena Local Participation Partnership

Winner: Resources sector: Excellence in Working with Communities

Maximising local supplier participation and community value is the focus of the award winning Carrapateena Local Participation Partnership, formalised between OZ Minerals and Global Maintenance Upper Spencer Gulf (GMUSG).

The partnership supports local procurement targets by OZ Minerals’ $900 million Carrapateena copper–gold project, currently under construction 160 km north of Port Augusta.

This exceptional partnership has elements that can be replicated by all sectors in the South Australian economy, no matter the size of the operation, providing a leading practice example for all companies.

‘Carrapateena is a new copper mine with a mine life of at least 20 years, and will have up to 750 contractors on site building the mine over the next couple of years’, said Myles Johnston of OZ Minerals.

‘OZ Minerals and GMUSG have partnered to establish the contracting and manufacturing capability in the Upper Spencer Gulf to support the project and provide these businesses with direct contact with new business opportunities.

‘We have established a process to engage with lead contractors to set expectations for local content requirements, then mandate, monitor and measure performance against those requirements.’

Mark Malcolm of GMUSG further explained, ‘Our partnership with OZ Minerals and their lead contractors enables us to bring local suppliers face-to-face with procurement decision-makers’.

‘More than 40 businesses locally are already involved. With more than $15 million worth of local expenditure already, we know this process is working.’

‘You can go to Carrapateena today and you can see fabricated parts of the processing facility which have come straight from Whyalla’, Myles added.

Community and supplier forum held at Port Augusta, 22 May 2019.
Carrapateena Local Participation Partnership: community and supplier forum held at Port Augusta, 22 May 2019. (Courtesy of GMUSG; photo 417811)

A very successful community and supplier forum held in Port Augusta on 22 May 2019 saw over 95 organisations and businesses in attendance. Lead contractors, alongside OZ Minerals and GMUSG personnel, networked with local contractors and community members and discussed the opportunities presented by OZ Minerals’ projects.

For local business, Spencer Gulf Containers based in Port Pirie, the Carrapateena project has been a significant boost. Manager, Ryan Dunstall, said ‘We’ve been fortunate to win business supplying specialised storage units and portable buildings to the Carrapateena project. We believe OZ Minerals has been very supportive of local businesses’.

To get involved, contact Mark Malcolm, Manager, Global Maintenance USG on 0419 820 641.

Watch the project video

2019 Premier’s Awards in Energy and Mining

Save the date: Awards Dinner on Friday 15 November 2019 at the InterContinental Adelaide.

More details about the 2019 Awards Program will be announced soon.

– Alisha Green, June 2019

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