In the countries that host mining, local procurement offers significant opportunities for economic development and industrialisation. Purchasing goods and services in host countries and communities also helps mining companies strengthen their social licence to operate, and in the long run lowers procurement costs. However, despite increasing attention to local procurement as a central component of responsible mining and new regulations, industry approaches to the issue remain relatively underdeveloped. To determine the potential for increasing local procurement in communities and countries that host mineral extraction, it is necessary to have data and practical information available for a mine site and its stakeholders to use in collaboration. While local procurement is included in the Global Reporting Initiative (GRI), as well as various sustainability systems used by mining companies, the approaches to reporting and the level of detail provided by companies drastically differs across the industry. Importantly, few mining companies report at the level of individual mine sites. As such, the level of detail provided in most existing reporting is not yet at the level necessary to help mining companies better manage their impacts, nor does it provide sufficient information for host country suppliers, governments, and other stakeholders to optimize economic benefits

Mining Local Procurement Reporting Mechanism

Resource Key: 4Z3DYIQW

Document Type: Report

Creator:

Author:

  • GIZ

Creators Name: {mb_resource_zotero_creatorsname}

Place:

Institution: Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH and the Mining Shared Value (MSV)

Date: 2017

Language:

In the countries that host mining, local procurement offers significant opportunities for economic development and industrialisation. Purchasing goods and services in host countries and communities also helps mining companies strengthen their social licence to operate, and in the long run lowers procurement costs. However, despite increasing attention to local procurement as a central component of responsible mining and new regulations, industry approaches to the issue remain relatively underdeveloped. To determine the potential for increasing local procurement in communities and countries that host mineral extraction, it is necessary to have data and practical information available for a mine site and its stakeholders to use in collaboration. While local procurement is included in the Global Reporting Initiative (GRI), as well as various sustainability systems used by mining companies, the approaches to reporting and the level of detail provided by companies drastically differs across the industry. Importantly, few mining companies report at the level of individual mine sites. As such, the level of detail provided in most existing reporting is not yet at the level necessary to help mining companies better manage their impacts, nor does it provide sufficient information for host country suppliers, governments, and other stakeholders to optimize economic benefits

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