Study highlights best practices in mining industry local procurement

Mining Shared Value (MSV), a non-profit program of Engineers Without Borders Canada, has released a study assessing local procurement practices of World Gold Council member companies. The study provides recommendations and highlights best practices for the wider mining industry.

"The study shows a multitude of best practices are in place across World Gold Council member companies when it comes to local procurement, but also highlights where there is room for improvement," Jeff Geipel, managing director of MSV, said.

He added: "Our study found that as a group, the mining company members of the World Gold Council have generally improved their local procurement practices, particularly in the past five years, with a pattern of companies gradually formalizing ad hoc efforts into more detailed policies and internal procedures."

"The sustained social and economic contributions that gold mining companies make to the local communities where they operate is not well understood. We were thrilled to partner with Mining Shared Value to better understand the significant opportunities that exist when it comes to local procurement, which has the potential to create jobs and businesses that reach beyond the mining sector. We hope this report helps all mining companies reflect on the way in which they procure their goods and services to maximize benefit to local communities," Terry Heyman, chief strategy officer of the World Gold Council, stated.

The study examined public reporting, interviewed member companies, and conducted three in-depth case-study visits to mine sites in South Africa and Chile.

Endeavour Mining, operating in West Africa, received recognition for comprehensive local procurement practices. "We are delighted to be featured in this report and to be recognized as one of the industry leaders on local procurement. Mining is a powerful economic catalyst, prioritizing and increasing the competitiveness of in-country suppliers can substantially amplify a mining company's positive contribution to local, regional, and national economic development. Sharing best practice ideas through reports like this can help to drive further improvement," Hawahou Guillaume, senior vice president of supply chain at Endeavour Mining, commented.

Kinross Gold's La Coipa mine in Chile participated in the study. Dominic Channer, vice-president of community relations and sustainability at Kinross, stated: "Driving local procurement is a key part of the Kinross approach to its benefit footprint in host countries and communities."

The study profiles local procurement best practices to provide models for other mining companies. Geipel added: "We found no shortage of leading best practices across the World Gold Council membership and we hope this report encourages and supports companies to implement these models more widely."

A launch event took place during London Mining Week. The final study is available for download at https://miningsharedvalue.org/publications. Learn more at www.Miningsharedvalue.org,  www.Ewb.ca and www.Gold.org.