Mine Aquisition - Transition Support

Sebastian Rapp
Senior Consultant
Heavy Industry
Strategic Procurement
May 13, 2024
$2B
Spend under contract
112
Contracts transitioned
85
Contracts negotiated

Client Problem

The client acquired two large coal mines in Queensland's Bowen Basin and required support to transition all supply contracts to ensure continuity of operations at completion date. The client did not have the capability or capacity to complete the significant amount of work in the 5-month timeframe.

Caliba Solution

Caliba was engaged by the client to complete the initial procurement function review and contract transition planning during the bidding phase so the client would be ready should they be successful in the bid. When the client was successful with their bid, Caliba was engaged to implement the plan.

The implementation phase involved Caliba liaising with 67 client stakeholders, developing the new contracts transition approvals process, and negotiating 85 new supply agreements with the incumbent suppliers, including all the strategic and operation critical tems such as OTR tyres, fuel, and OEM parts supplies. There were also 112 assigned contracts where Caliba facilitated the review and client approval process.

The implementation phase was 5-months, and in that time Caliba worked with the client stakeholders to ensure all the key supply and services contracts were in place for day 1 of operations. This was approximately $2bn worth of spend put under contract in 5-months.The mines successfully operated from day 1 with no supply disruption which was a credit to the whole team.

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