The Mining Local Procurement Reporting Mechanism (LPRM)
Local Procurement Reporting Mechanism
The Mining Local Procurement Reporting Mechanism (LPRM) is a set of disclosures that seeks to standardise how the global mining industry and host countries measure and talk about local procurement.
The Mining Local Procurement Reporting Mechanism (LPRM) is a set of disclosures that seeks to standardise how the global mining industry and host countries measure and talk about local procurement. In most cases procurement of goods and services is the single largest in-country payment type by a mine site, and yet to date there has been no commonly accepted way of reporting on the issue. Commissioned by the German Federal Ministry for Economic Cooperation and Development (BMZ) through GIZ and created by the Mining Shared Value initiative of Engineers Without Borders Canada, the LPRM helps mine sites report on local procurement to:
Improve internal management in mining companies to create more benefits for host countries and to strengthen their social license to operate.
Empower suppliers, host governments, and other stakeholders with practical information that helps them to collaborate with mine sites.
Increase transparency in the procurement process to deter problematic practices such as corruption.
New: Download the LPRM mine site Excel template, which can be used to request information from sites.
Implementing Companies
Company Materials: Aya Gold & Silver 2020 Sustainability Report (pp. 16, 18); Elevar Resources 2022 Sustainability Report (pp, 12, 21, 24, 29, 54 - 56); Endeavour Mining Sustainability Report 2022 (pp. 1, 52); Freeport-McMoRan 2022 Annual Report on Sustainability (pp. 41) and 2022 LPRM Disclosures Document; Golden Star Resources Corporate Responsibility Report 2020 (pp. 41-43, 61); Iamgold 2021 Sustainability Report (pp. 27-28); Ivanhoe Mines Sustainability Report 2022 (pp. 4, 67); Lundin Gold Sustainability Report 2022 (pp. 4, 13, 42) and 2022 GRI, SASB and LPRM index spreadsheet; New Gold 2022 ESG Overview (pp. 10) and 2022 Social Report (pp. 6) and 2022 Factbook; Orla Mining 2022 Sustainability Report (pp. 63-64); Solaris Resources 2022 Sustainability Report (pp. 126 - 129); Torex Gold Resources 2022 Responsible Gold Mining Report (pp. 5, 115).
LPRM in Mining Sector Standards and Guidance
Canadian Institute of Mining, Metallurgy and Petroleum (CIM) - CIM Environmental, Social and Governance Guidelines for Mineral Resource and Mineral Reserve Estimation (2023), pp. 55
Extractives Industries Transparency Initiative (EITI) - Gender-Responsive EITI Implementation Guidance (2022), pp. 32
Initiative for Responsible Mining Assurance (IRMA) - IRMA Standard for Responsible Mining Guidance Document (2022), pp. 182
Intergovernmental Forum on Mining, Minerals, Metals and Sustainable Development (IGF) - IGF Mining Policy Framework Guidance Document (2023), pp. 29
International Council on Mining and Metals (ICMM) - Social and Economic Reporting Framework and Guidance (2022), pp. 27
International Petroleum Industry Environmental Conservation Association (IPIECA) - Good practices in supply chain management and carbon footprint of wind and solar energy technologies (2023), pp. 15, 39, 40, 65
Publish What You Pay (PWYP) - Promoting Backward Linkages and Transparency: A Civil Society Guide to the Mining Local Procurement Reporting Mechanism (2021) pp.6, 25-42; Feminist Natural Resource Governance for a Just Transition: 18 - Policy Imperatives (2022) pp. 3
Stakeholder Guidance
A Guide for Governments on the Mining Local Procurement Reporting Mechanism (LPRM)
This brief explains how host country governments can use the Mining LPRM to collect better data on mining sector procurement of goods and services, to inform better policy towards increasing the potential economic benefits of extraction. Written in partnership with The Canadian International Resources and Development Institute (CIRDI).
This policy brief is aimed at consultants who work with mining companies on sustainability reporting initiatives. It provides consultants with an easily accessible primer on the drivers for firms to disclose information on local procurement, the strategic advantages for consultants to take up this issue with their mining sector clients, and practical guidance on how to do so in line with the LPRM. Written in partnership with CIRDI.
This brief outlines how the LPRM can be a powerful tool for civil society organizations to improve accountability for efforts to increase local procurement, facilitate their oversight role in fair and transparent procurement processes, and also to help build collaboration between mining companies and local businesses to target supplying opportunities. Written in partnership with CIRDI.
Additional Guidance Notes to Support Mining LPRM Implementation:
Guía de soporte para miembros del EITI en informes sobre compras locales - Esta guía demuestra cómo los países adherentes a la Iniciativa para la Transparencia de las Industrias Extractivas (EITI) pueden usar el LPRM para recopilar y presentar datos sobre el tema de compras locales, como parte de su proceso de presentación de informes.
Supporting guidance for EITI members on local procurement reporting - This guidance note demonstrates how Extractive Industries Transparency Initiative (EITI) countries can use the LPRM to collect and present data on the vital issue of local procurement as part of their reporting process.
Using the LPRM to Report on Mining Sector Procurement from Women-Owned Businesses - This guidance explains how LPRM disclosures 301, 302 and 507 can be used by mine sites wishing to report on their efforts and results of targeting women-owned businesses. It also explains how reporting using the LPRM in general supports traditionally under-represented groups that may face barriers accessing the procurement processes of mine sites.
Local procurement reporting case study of Oyu Tolgoi - This case study explores the reporting on local procurement that the Oyu Tolgoi mine in Mongolia carries out, and both the business value they have recognized in providing extensive information, and the benefits created for host country suppliers, government and other stakeholders. MSV visited the Oyu Tolgoi mine in 2016 as part of the research and consultation process for the Mining LPRM, and the leadership provided by this mine was a key source in influencing the final system.
How the Mining LPRM can support investor risk assessment - This guidance note shows how investors in mining assets can use the Mining LPRM as a risk mitigation tool for their investments.
How to publish Mining LPRM data to promote use by stakeholders - This guidance note covers how mining companies and other actors can report Mining LPRM data in a way that makes it accessible to suppliers and other host country stakeholders, in line with open data principles.
GIZ LPRM Factsheets:
How mining can support economic growth (September 2021)
Rohstoffabbau für Wirtschaftswachstum nutzen (German, September 2021)
Implementing Partners
Onyen is an automated reporting software that allows mining companies to efficiently complete their Environmental, Social, and Governance (ESG) reporting obligations, by inputting data into fully customizable software that automatically generates a report, and also features AI technology to ensure data is intelligent and learning. Onyen’s software now includes all of the Mining LPRM’s disclosures so that user companies can customize their responses and the resulting ESG report will automatically provide reporting in accordance with the LPRM. Learn more about Onyen’s services at their website.
LPRM developed by: Mining Shared Value, Engineers Without Borders Canada
LPRM supported by: Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH, on behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ)
Citation: Mining Shared Value, Engineers Without Borders Canada with funding from German Federal Ministry for Economic Cooperation and Development (BMZ) through GIZ’s global Extractives for Development Project. Mining Local Procurement Reporting Mechanism. Toronto : Engineers Without Borders Canada, 2017.