Resource Industry Network has welcomed an announcement by mining giant Peabody that it will be implementing 30-day payment terms for its supply chain.
RIN represents the resource sector and allied industries within the Mackay region, and general manager Adrienne Rourke said today’s announcement was good news for businesses in the resources supply chain.
Peabody’s Australian president, George J Schuller Jr, said the move recognised the impact that late payments had on business cash flow, especially for family businesses in regional Queensland.
“As a company, we’re committed to working as hard as we can to support the people and businesses that support us,” Mr Schuller said.
“Whether you’re a committed supplier of ours from Mackay, Moranbah, Nebo or Rockhampton, Peabody’s aim is to forge even stronger business relationships with you into the future.”
Ms Rourke said Peabody’s decision would help in reducing the use of debt to fund operating costs, making businesses more resilient and responsive to market changes.
“Businesses will be better able to fund intangible inputs such as research and development, and training, which drive the innovation that our sector is famous for,” Ms Rourke said.
“RIN has led the discussion on this topic and we are proud of the work our team has done in raising awareness of the impacts of extended payment terms on regional economies.
“We pursued the issue because the overwhelming majority of our membership wanted us to lead the way and highlight the impacts of extended payment terms on individual businesses, as well as local economies.
“The decision by Peabody today is good news for the resources supply chain, and for regional Australia.”