WHITEHAVEN Coal has vowed to pay its small and medium suppliers within three weeks, following a parliamentary inquiry into the relationship between the mining sector and regional businesses.
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The inquiry, chaired by New England MP Barnaby Joyce, heard stories of large mining companies regularly withholding payments to their small and medium local contractors for more than 60 days
The committee recommended resource companies pay contractors within 30 days.
Whitehaven CEO Paul Flynn said more than half of the company’s suppliers were already being paid within 30 days.
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With the bills being paid even faster, he said regionally-based suppliers would be able to improve their cash flow and capital management.
“Whitehaven has a proud heritage as a locally-based and locally-focused miner and we know many smaller businesses in regional areas are reliant on cash flows generated by a smaller number of larger customers,” Mr Flynn said.
“Considering the way in which so many regional businesses have helped contribute to our own success and growth as a company over the years, we are pleased to be able to make this change and build on our record of close partnership with local suppliers.”
Director of Gunnedah-based business GBP Cranes, Daniel Hawkins said the quicker payments would enhance his company’s capacity to invest in other initiatives to grow the business.
“A key aim of ours is to employ locals and keep investing in our local economy and community,” Mr Hawkins said.
“We have been able to grow our workforce to 20 employees in part because of our relationships with large local businesses like Whitehaven.
“It’s great to see them announcing further improvements to working with businesses like ours – it really is a win-win outcome.”
