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sharing in governance of extractive industries

Local Content Training Course

Event Details

Local Content Training Course

Time: July 19, 2017 to July 20, 2017
Location: Brisbane, Australia
Website or Map: https://www.csrm.uq.edu.au/lo…
Event Type: training, course
Organized By: Centre for Social responsibility in Mining, University of Queensland
Latest Activity: Jun 15

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Event Description

Topics Covered

Defining what value local content can create in a specific host country context:

  • Undertaking a country context review, as the first step for companies in identifying the risks and opportunities associated with developing local content
  • How to use the context review to understand and distinguish between the legal, regulatory and contractual requirements that companies are bound to comply with as a minimum, and the expectations and higher-level public policy that lies behind these
  • How companies can align their local content value proposition with the host country’s industrial and economic development policies, in order to streamline efforts, ensure long-lasting support from government and promote sustainable in-country value along all stages of an mining, oil & gas project lifecycle and beyond

Collaborating on a local content strategy:

  • How to engage and collaborate with those who share an interest in ensuring that local content programmes do create ‘shared value’
  • How to conduct an aggregated industry workforce and goods/services demand analysis, and a supply side analysis to identify what is feasible, taking into account project lifecycles 
  • How to design a collaborative strategy which sets out the high-level objectives and definitions for local content endorsed by stakeholders, outlining respective stakeholder roles and responsibilities

Examples of collaborative initiatives from other parts of the world where companies, governments, major contractors and others implement through partnerships to address identified gaps:

  • Skills development programmes: considerations for strengthening technical and vocational training (TVET), and case studies illustrating skills gap assessments, defining of skills competency standards, interventions at all levels of education (from primary to post-graduate) and knowledge transfer for talent acceleration
  • Enterprise Centres / vendor development programmes: alternatives for delivery models and considerations for implementation are offered and case studies of initiatives designed to support supplier development, including supplier diversity, community agreements to address the supply / demand gap, community equity ownership in supplier firms, access to finance, online databases linking local businesses to contract opportunities, and partnerships between local and international SMEs to exchange know-how and improve access to markets
  • Strategic and substantial investments with a long-term horizon: cluster initiatives for world-class supplier development, cross-industry R&D collaboration, common use infrastructure and investments in access to energy

Individual company local content strategy:

  • Elements of a company’s local content strategy: business case, expression of the company’s commitment to the collaborative strategy, based on factual analysis, quantifies trade-offs, describes a narrowly focused set of objectives for an internal action plan, sets local content targets for goods and services and human resources positions, and defines the resourcing and organisational structures and systems required to deliver
  • Analysis required before giving ‘preference’ to local businesses (even when mandated), including assessing the risk of unintended consequences and mitigations
  • Demand-side interventions: Communicating opportunities, simplifying procurement and contracting, collaborative industry approaches to supplier pre-qualification, involving lead contractors / suppliers, and identifying and managing corrupt practices risks, monitoring & evaluation.

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