Mark Sitter is the Director of Corporate Affairs and Sustainability at Sherritt International Corporation, a Canadian mining and energy company committed to continuously improving its performance in sustainable development.
In recent years, mining companies have been increasing their focus on local procurement to provide more benefits to communities while reducing supplier costs associated with tariffs, delivery time, transportation, and other premiums. Additionally, stakeholders have come to expect that companies have measures in place to do this effectively, and governments often require it. For miners, local procurement has become essential to securing social license, seizing business opportunities, and managing broader risks.
But getting it right isn’t easy, especially since mining companies are often the first big investor on the ground in an unindustrialized area. That usually means there are few supplier options to begin with, and even fewer that meet requirements related to quality, standards, technical specifications, safety, and security. There may be additional challenges related to politics, cultural differences, corruption, and lack of infrastructure.
Read the complete article: One mining company’s approach to local procurement
Source : Building Markets