Mineral producers need to be significantly more open about partnerships and collaborate more methodically, a purchasing guru urged.
BHP group procurement officer James Agar wants the entire mining sector to collaborate systematically and be more radically transparent.
Agar believes the industry should reflect on past experiences from the pandemic and use them to strengthen resilience in the face of supply chain constraints. Global economic outlooks have also not improved despite enduring the worst of coronavirus (COVID) lockdowns.
“As a result of COVID global demand vanished almost overnight. What we learnt is that we cannot do it alone, we need to work collaborative and we need to be more transparent with our partners,” he said at the 2022 International Mining and Resources Conference.
“Labour markets are tight globally with no sign of easing soon. The energy crisis in Europe is profound and will continue to drive volatility in energy markets.”
The mining giant will respond to this trend through pursuing a policy of “radical transparency and systematic collaboration” to ease trading pressures. This requires building relationships with all stakeholders who support BHP operations, regardless of operational size.
“We have not always been perfect in this regard,” Agar said.