Unlocking value through transformation

James Palmer, BHP Mitsubishi Alliance (BMA)

With a workforce of over 10,000 proud, passionate people, we know that what we do as a business today will determine how our people and the communities where we operate are prepared for the decades ahead.

That’s why we have committed to investing more in our people to create a stronger foundation to realise the future. That means more investment in training and skills development, growing a better culture at BMA and empowering our people and our partners to help us find better ways of working. This also means more permanent jobs.

Creating permanent roles

We’ve heard the strong calls from our workforce and the local communities to reduce long-term labour hire and create more permanent employment. BHP’s Operations Services has been developed specifically to help answer those calls and is one of the key ways that we’ll do that.

Operations Services continues to create both permanent roles and operational stability for us, to date delivering more than 700 full time jobs within BMA; and we’re recruiting for hundreds more across our operations in Queensland. We’re proud of this achievement and are excited to be welcoming hundreds of new people who are supporting the delivery of a safe, stable and sustainable performance. Importantly, we expect that around half of those people will live in regional communities.

While we’re transitioning to a more permanent workforce, at the same time we’re also steadfastly focused on preparing our people for the future of work.

We are keenly focused on helping our existing and future workforces make the most of the opportunities in front of us. We have partnered with the Queensland Resources Council, TAFE and the State Government to deliver training programs to enhance foundational digital skills.

At our sites, where the changing nature of work will perhaps be most significant, we have also launched a concerted development program focused on preparing people for the roles of the future. Through this program we’re creating the environment and providing people with the tools to be prepared for change so everyone can take control, make their own decisions and shape their futures.

This includes learning more about autonomous equipment and operations, transition pathways, training and reskilling requirements. We are also partnering on a number of fronts to tackle the STEM skills gap.

BHP has contributed more than $55 million to STEM programs across Australia and we’re proud to see the positive impacts this is already having in Central Queensland. We’re seeing the benefits flow through, with high school students completing Remote Pilot certificates as part of their senior studies and regional school principals touring some of Queensland’s best schools for automation and robotics. Now, they are embedding learnings in their own communities, ensuring students at their schools have access to cutting-edge curriculum.

Soon, we’ll see students have the option to study automation at TAFE in Queensland – when, as part of a collaborative effort, we replicate a course that has been created in Western Australia.

As we continue to invest in our people and local communities, we’re also looking to generate more value from our existing operations. It’s vital we do this to in order to keep pace with the progress we’re seeing from our competitors – both in Queensland and around the world. At BMA, we have a transformation agenda underway that is designed to unlock that potential by delivering the next wave of productivity gains, which will, in turn, further increase capacity across our operations.

For an organisation the size and scale of BMA, it’s critical that our operations are competitive at every point in the cycle. We must be safe, stable; and sustainable in order to get the most from our portfolio of seven operating mines in the Bowen Basin, as well as the Hay Point Coal Terminal near Mackay. It’s about maximising the value of our world-class coal assets with best-in-class operational capabilities to create long-term competitive advantage.

When we achieve that competitive advantage, it flows into the creation of jobs in Central Queensland as well as regional contracting, procurement and other business opportunities – something BMA is invested in for generations to come.

Advancements in technology are playing a key role in enabling these opportunities as well as being a major driver of our transformation. For BMA, it will mean everything from increased automation through to greater integration across the value chain.

While we’re early on in our transformation journey, we’re already seeing the safety and productivity gains delivered through the latest technologies. Across our operations, geospatial technology using drones now allows us to gather more information about our sites than ever before. We can quickly and accurately measure many things, from bund heights to stockpiles, review compliance to plan and understand where we need to make changes to improve safety or boost productivity. Most importantly though, drones are making mining safer by deploying technology that removes surveyors from our pits. Now they are out of harm’s way and spending less time driving utes and more time driving improvement and results.

Our Coal IROC is another great example of technology transforming the way we work that has created an extensive suite of training and upskilling opportunities for our people – many of whom are long-term miners. Over 50% of the IROC’s mine control team have formerly operated heavy vehicles and now help drive our entire coal supply chain - from pit to port. The IROC has also achieved gender balance from the outset, and above average participation for Indigenous Australian employment – which is important as we play our part in changing the face of mining.

As we continue to explore and deploy the latest transformational technologies, we remain deeply committed to preparing our workforce - and the workforce of tomorrow. As we progress it will likely mean fewer operators physically on the equipment, but it will mean more controllers, builders and technicians performing roles that are less routine or physically demanding. Importantly, it will also mean more dynamic and fulfilling careers for our people.

Supply chain collaboration

There’s no doubt that one of the greatest contributions BMA makes to the places where we operate is engaging our suppliers to solve our challenges and, in turn, stimulate innovation. These days, we are focused more on establishing a supplier relationship model based on sustainable mutual commercial value, built on long lasting partnerships that unlock value for everyone involved.

Developing smaller businesses with us creates shared value for the local communities. We also know that many of the best ideas come from those who are either more agile than us or further advanced on the journey than we are. As we accelerate on our transformation journey we know that we have to embrace new ways of working and new partners to do it with.

The BHP Local Buying Program is a great example of this contribution in action. Since its inception in 2012, BMA and BHP Mitsui Coal (BMC) have spent well over 400 million dollars with local businesses through this vital program. We’ve also made it easier for local businesses to competitively bid through a streamlined procurement and payment process that includes 21-day payment terms.

We strongly believe that as we work together to partner towards more productive and sustainable relationships we will create a competitive advantage and opportunities that will be hard to replicate.

While this is an exciting time for us, we must not lose sight of the need for others to also benefit from the work we do - this is especially relevant in Central Queensland, whether it’s ensuring that everyone goes home safe every day, creating more permanent employment opportunities, investing in training to prepare for the future of work, or prioritising local contracting and procurement. All of these are vital factors in ensuring that we can and will thrive for the long-term and we all have a role to play. We have entered an era that will present significant opportunities for those who create shared value – and significant challenges for those who don’t.

At BMA, our greatest priority is to create a safer business that is competitive at every point in the cycle with safe, stable and sustainable performance. We have the future in our sights and I hope this is something we can all focus on together as a collective with an emphasis on creating shared value. 