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BHP adds thousands to SA workforce

Global mining giant BHP now employs more than 10,000 South Australians and spent $1 billion with local suppliers last financial year, according to its Economic Contribution Report.

Sep 07, 2022, updated Sep 07, 2022
BHP is increasing its SA workforce including Erin at Olympic Dam. Photo supplied.

BHP is increasing its SA workforce including Erin at Olympic Dam. Photo supplied.

The company’s SA workforce grew to 10,300 local employees and contractors in FY22, up from 7,700 in the previous year the report said, with  payments to the SA government totalling $119 million.

Among its assets, BHP owns Olympic Dam mine and Oak Dam in the state’s north, and the report said its national contribution to Australia was $18.5 billion in tax, royalty and other payments to governments.

Nationally, BHP’s workforce increased to about 50,000 people.

BHP Asset President Olympic Dam Jenny Purdie said the company was looking forward to continued growth in its South Australian mining assets.

“BHP is proud of our significant contribution to South Australia – a state that has been a strong supporter of our company and our industry for many decades,” she said.

“BHP will continue to invest in our people and our operations in South Australia, creating jobs, spending with local and Indigenous businesses, and supporting regional communities, as we look to further strengthen our copper business in SA.”

This economic contribution report released yesterday follows BHP’s earlier announcement this month of record profits with underlying earnings of $57 billion, boosted by higher copper prices and a strong finish to the financial year by SA’s Olympic Dam mine.

Release of the strong full year results also followed South Australian copper and nickel miner Oz Minerals knocking back a takeover bid from BHP, with the Oz Minerals board saying a $8b offer was undervalued and not in the best interests of shareholders.

Among local businesses working with Olympic Dam is Outback Mining Services, a 100 per cent Indigenous-owned business based in Port Augusta, specialising in surface and underground plant maintenance and facility maintenance.

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After an initial contract under the Local Buying Program, it now has eight of its 30 employees working at Olympic Dam.

Edgar Basto, BHP president minerals Australia Edgar Basto said the business placed “enormous value” on its relationships nationally with “our people, local businesses and suppliers, regional communities, indigenous groups and community leaders”.

The report said that BHP spent $16.5 billion nationally with suppliers, $39.6 billion in dividends to shareholders, $4.6 billion in employee wages, and $106 million in social investments.

“It has been a tough couple of years for many Australians, and we are proud to be able to make an economic contribution of nearly $80 billion (AUD) through our operations and exports, local employment and business spend including seven-day payment terms for small, local and indigenous suppliers, direct economic input through taxes and royalties, and widespread community support,” he said.

Basto believed the nation had opportunity to achieve fresh growth in national and regional economies, and to create new opportunities for local and indigenous communities to be part of a more diversified and resilient Australian economy.

“We must continue to collaborate between government, industry and communities, and invest in education, skills, regional infrastructure and local services such as childcare to help make this happen,” he said.

“BHP will continue to invest in the skills, training, technology and innovation needed to support the next chapter of Australia’s economic development, particularly in regional areas.”

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