This report examines the global mining industry’s prioritization of local procurement by measuring the degree to which the largest 40 mining companies publicly report on local procurement in their 2012 and 2013 corporate responsibility or annual reports.
The Mining Local Procurement Reporting Mechanism (LRPM) 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 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.
To support Sub-Saharan African governments and their stakeholders in their efforts to increase supply chain linkages to hosted mining activity, this research focuses on the relationship between local procurement regulations and mining company practices in the South African and Namibian mining sectors. This research examines the extent to which comprehensive local procurement regulatory frameworks are effective in making mining companies purchase more locally.
This report examines the current and best practices in Aboriginal supplier inclusion across Canada's mining industry. From a national study, which included field visits and interviews with over eighty key informants across industry, private Aboriginal business, and Aboriginal Economic Development Corporations, the findings in this report offer strategies to improve Aboriginal business engagement here and abroad, as well as recommendations on where to start first.
This study led by the International Institute for Sustainable Development (IISD) and the Columbia Center on Sustainable Investment (CCSI) examined what impacts mining industry automation may have on local procurement and the creation of shared value more generally. The study shows the need for host country governments and mining companies to work together to reduce and mitigate potential adverse effects of automation in terms of reduced local procurement and linked employment.
Following the analysis of the world's 40 largest mining companies in the original March 2015 report, this Supplementary Edition adds an examination of the degree to which the largest 50 Canadian mining companies publicly report on local procurement in their 2012 and 2013 corporate responsibility or annual reports.
Ahead of the June 2017 launch of the Mining Local Procurement Reporting Mechanism (LPRM) in partnership with GIZ, this report analyses recent reporting in the corporate responsibility reports of the largest 40 global and Canadian mining companies. It shows a significant increase in the level of attention being given to local procurement as an issue in responsible mining, and showcases great reporting from companies including BHP, Newmont, Barrick, IAMGOLD, Cameco and Pan American Silver.