BHP and Peabody Energy move to 30-day payment terms from December 1st
Posted on November 27th, 2018
The news this week that both BHP and Peabody Energy were moving to 30-day payment terms is great news for regional industry – allowing businesses to trade under normal trading conditions without the added cost of securing short term finance!
In July this year the Australian Parliament’s House Standing Committee on Industry, Innovation, Science and Resources launched an inquiry into how the mining sector can support businesses in regional economies. The key elements of the inquiry included: payment terms in the mining sector; skills and expertise in regional businesses working with the mining sector; diversification opportunities for regional businesses; innovation in mining and related industries; royalty payments to landholders.
Understanding the impact that extended trading terms were having on its Members, Capricorn Enterprise joined with regional partners including the Resource Industry Network (RIN) making Submissions to the Parliamentary Inquiry – plus participating in Public Hearings associated with the Inquiry.
Whilst “trading terms” comprise only one of the key elements of the Inquiry – having the large Mining Houses agree to amend their trading conditions for regional industry is a huge step forward – allowing Industry to invest in future technologies, expand its workforce to become more competitive and profitable.
On behalf of its Members Capricorn Enterprise will progress communication with both BHP and Peabody Energy to ensure that their respective decisions regarding payment terms is in accord with associated media reports.