BHP - BHP Group

[JohnDe]

BHP’s axe falls on contractors as it examines claims of coal mine corruption in Queensland

BHP’s investigations are thought to centre on whether contractors were hired from within BMA for non-existent work, or for jobs where the extent of the work was greatly exaggerated. It is understood BHP is still trying to determine the financial impact of any improper or unwarranted payments, and how the contracts were issued.​

BHP has sacked dozens of contractors as it investigates allegations of corruption involving its coal operations in Queensland.

Some 26 contractors have been let go so far after BHP uncovered evidence pointing to wrongdoing within BMA, Australia’s largest producer and supplier of seaborne metallurgical coal.

BHP appears to have instructed international labour hire firm Hays, one of the biggest players in the sector in Australia, to turn off the contractors after a review found they were not required at the company’s coal mines in the Bowen Basin.

BHP’s investigations are thought to centre on whether contractors were hired from within BMA for non-existent work, or for jobs where the extent of the work was greatly exaggerated. It is understood BHP is still trying to determine the financial impact of any improper or unwarranted payments, and how the contracts were issued.

In response to questions from The Australian, BHP issued a statement via its coal division.

“BMA has robust measures in place to prevent and detect fraud and misconduct, and where it takes place we investigate and take necessary action,” a BMA spokesman said.

“We encourage anyone to speak up if they have concerns any conduct is inconsistent with our code (anti-corruption guidelines), internal requirements, or conduct that may be illegal or improper.”

There is no suggestion of any wrongdoing by Hays. The Australian was trying to contact Hays for comment last night.

Some of the sacked contractors had part-time duties or had yet to do any work at BMA.

The sackings and BHP investigation have sparked claims of widespread corruption from individuals purporting to have knowledge of the scandal and seeking to act as whistleblowers.

They claim to have reported the corruption claims to Crimestoppers in Queensland and have encouraged others to contact the police and the Australian Investment & Securities Commission.

Queensland police were not able to shed light on whether they had received complaints via Crimestoppers or launched an investigation.

One contracting firm named on social media strenuously denies any wrongdoing and is seeking legal advice.

The investigation and sackings come with BHP and unions locked in a legal battle in the Fair Work Commission in Brisbane over same job, same pay changes to industrial relations laws made by the Albanese government.

BHP led mining industry criticism of the IR changes, and Queensland remains on the nose with BHP chief executive Mike Henry over a big increase in coal royalty rates.

Mr Henry has criticised Queensland as an investment destination and late last year put Premier David Crisafulli on notice that BHP would seek changes to the former state Labor government’s super-profits coal royalties scheme.

BHP’s anti-corruption guidelines prohibit authorising, offering, giving or promising anything of value directly or indirectly to anyone to influence them in their role, or to encourage them to perform their work disloyally or otherwise done improperly.

Investigations are managed by lawyers within BHP’s compliance team and all employees receive annual training on the guidelines that prohibit bribery and corruption.

BHP confirmed it was investigating the corruption allegations a day after reporting a 14 per cent increase in production at BMA in the six months to December 31, taking into account last year’s $US3.2bn sale of the Daunia and Blackwater mines to Whitehaven Coal.

However, prices for BMA’s metallurgical coal fell 23 per cent year-on-year to $US206.37 a tonne.

BHP’s production guidance for 2024-25 remains unchanged at between 33 million and 38 million tonnes, but it is expected to be at the upper end of the range.

The production volumes are split with BMA partner Mitsubishi, which also has zero tolerance for corruption.