Anglo American has confirmed it will formally move to a 30-day payment terms policy for all small and medium-sized businesses.
Chief executive officer of Anglo American’s Metallurgical Coal business, Tyler Mitchelson, said the announcement formalised an existing practice within the company’s Australian operations, in a clear demonstration of support for regional businesses.
“Anglo American has long recognised the need for a localised approach to procurement in the regional areas where we operate, and we are pleased to provide additional certainty to our small and medium-sized business suppliers through clarifying our current practice of 30-day payment terms,” Mr Mitchelson said.
“We value our relationships with supplier partners and will continue to work closely with them to ensure we deliver sustainable economic outcomes for our communities.
“Last year we launched Anglo American’s innovative global Sustainability Strategy, which focuses on making a strategic and holistic positive impact on the ground to transform how our stakeholders experience our business – particularly in the local areas around our operations.
“Our business practices for supplier payment terms demonstrate one way we are achieving this,” he said.
Mr Mitchelson said Anglo American invested heavily in locally-sourced and state-based procurement.
“Last year, around 73 per cent of our total procurement spend for our Australian operations occurred within Queensland,” he said.