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About

Building Capacity through the Local Buying Foundation (Qld & NSW)

Background


In 2012, BHP Billiton Mitsubishi Alliance (BMA) developed a local procurement program, the BMA Local Buying Program (BLBP) to increase the visibility and availability of sourcing opportunities (goods and services) available to local businesses located within the program footprint. The program was designed to be an innovative approach to increasing the local supply chain effectiveness and supporting regional economic development. It also reflected BMA’s genuine desire to demonstrate a long-term commitment to the social and economic well-being of the local communities in which it operates and the broader region. 

In May 2013, BHP Billiton Mitsui Coal (BMC) officially joined the program providing direct access across BMC operations to their local businesses. In November 2014, the program opened to businesses in the Mackay Region with the inclusion of BMA Hay Point Coal Terminal. In March 2016, the program expanded into NSW to include New South Wales Energy Coal (NSWEC) with its Mt. Arthur Coal operation and was rebranded as the Local Buying Program (LBP).

The LBP has two fundamental components:

  1. Sourcing transactional mechanism (www.localbuying.com.au) delivered through an Agent Partnership with C-Res. The program encourages the competitive supply of goods and services to BHP Billiton BMA/BMC/NSWEC operations by local businesses.
  2. Local Buying Foundation (LBF) - LBF funding in both Qld and NSW is held in trust and payments are facilitated by C-Res on behalf of the Local Buying Foundation Advisory Committees (LBFAC).

Objectives

The primary objective of the Local Buying Foundation, in both Qld and NSW, is to support and deliver economic and local/regional business programs which build capacity. The Foundation’s objectives and priority areas are reviewed to ensure they remain relevant to the economic environment and aligned with changing business community needs. The current priority areas of the Foundation (or program streams) have been identified as:

  • Building Sustainable Business Futures (BSBF) - Targeting the development of the broader business community’s capacity and capability. Focal areas include but are not limited to:
    • Workforce Development Projects - Projects that deliver broader traineeship, apprenticeship, and/or business professional development programs
    • Economic Development Projects - Strategic projects targeting broader economic objectives within and across regions
    • Region Promotion and Awareness - Initiatives to increase regional awareness contributing to the economic viability of regional communities, e.g. events, marketing, campaigns, advocacy
  • Building Sustainable Business Communities (BSBC) - Targeting the development of individual businesses capability and capacity that align with the key areas of  Bowen Basin Business Development Initiative (BBBDI) or similar if in NSW or external to the Bowen Basin in Queensland.

Local Buying Foundation Advisory Committee (LBFAC)

To ensure that both Qld and NSW Local Buying Foundation funding opportunities target genuine community needs, a Local Buying Foundation Advisory Committee (LBFAC) has been established for each foundation. The primary role of the LBFAC is to provide guidance and market/environment intelligence to inform, identify and support and the investment and disbursement of the Foundation's funds and to oversee effective governance of the Foundation.  The LBFAC will ensure that approved projects, programs, and initiatives align with the Foundation's objectives, meet specified criteria and have the appropriate due diligence (supporting and enhancing regional economic and community development).

The LBFAC undertakes governance of the Foundations in both Qld and NSW with administration being undertaken by C-Res (Qld) Pty Ltd.  In 2017, a dedicated Local Buying Foundation Projects Officer (LBFPO) role has been implemented in Qld to support the development of the Foundation. 

The LBFAC is a representative body made up of key stakeholders from across the region with an interest or skills and expertise in regional economic development. 

Current representation in Qld includes:

  • BHP - Peter Dowling (Co-Chair)

  • BHP - Kristy Marks (Co-Chair) 

  • Central Highlands Development Corporation - Sandra Hobbs

  • Central Highlands Regional Council - Cr Paul Bell

  • Isaac Regional Council - Stewart Gow

  • Mackay Regional Council - Cr Ayril Paton 

  • Moranbah Traders Association - Erica Fredericksen

  • Queensland Rural Regional and Remote Women's Network - Bronwyn Reid

  • CQUniversity - Blake Repine

  • Regional Development Australia Mackay-Isaac-Whitsunday Inc - Ben Wearmouth

  • GW3 Greater Whitsunday Alliance - Garry Scanlan

NSW representation is still being finalised and will be published once EOI's have been received and evaluated. 

Local Buying Foundation Annual Reports

Qld LBF - Annual Summary - June 2016 Qld LBF - Annual Summary - June 2016 (1909 KB)

Qld LBF - Annual Report - June 2015 Qld LBF - Annual Report - June 2015 (325 KB)

Qld LBF - Annual Report - June 2014 Qld LBF - Annual Report - June 2014 (657 KB)


Other Reports

LBF Project Funding Report 2012-2015 LBF Project Funding Report 2012-2015 (4526 KB)

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