Mining giant BHP Billiton will potentially take twice as long to pay its suppliers for their services, after it announced it will extend payment terms from 30 days to 60.
According to an AFR report, an email was sent to all BHP suppliers late last week informing them of the change to 60 day payment terms, effective on all new contracts from the end of November.
The miner reportedly made the move after a review found its terms were “significantly shorter than the standard terms in the marketplace”.
“We are now bringing our standard payment terms into line with the current market and industry practice,” the letter was quoted.
Rio Tinto made a similar move earlier this year, extending its payment terms from 30 to 45 days.
According to Fairfax, the email was (most likely mistakenly) sent to all suppliers with all recipients visible – probably due to a BCC/CC mishap by the sender.