sharing in governance of extractive industries

New Canadian Edition of EWB Report Shows Attention to Local Procurement Rising Across Canadian Mining Industry Reporting

The Mining Shared Value venture of Engineers Without Borders (EWB) Canada is excited to share the Canadian industry-focused version of our report released in February, Local Procurement and Public Reporting Trends across the Global Mining Industry: An Analysis of Company Reporting, 2012-2013. In addition to examining how the world’s 40 largest mining companies publicly report on Local Procurement, this Canadian Mining Supplementary Edition also includes public reporting trends on the 50 largest Canadian companies. The report is available for download at the link below:


The increasing interest in local procurement across the mining industry is a testament to its potential to sustainably improve the social and economic impacts of mining activities for all stakeholders.  Purchasing of local goods and services by mining companies in host countries can create local jobs, promote the transfer of skills and technology, increase the integration of local companies into global value chains, and aid in the formalization of the local economy. For the mining companies themselves, local procurement can lower procurement costs, improve supply chain efficiency, and strengthen their social license to operate.

The Canadian Mining Supplementary Edition allows for a deeper understanding of local procurement public reporting trends in the Canadian mining context. Canadian mining companies have a significant presence at home and abroad, especially in developing countries and regions. The way in which they practice procurement therefore has an important impact on local communities, and Canadian companies have a strong voice in corporate responsibility dialogues across the global mining industry.

Mining Shared Value’s intent in focusing on Canadian mining companies is to encourage this pivotal industry to include and improve reporting on local procurement in the future.  This, in turn, will lead to better monitoring of local procurement and thus better execution. Last year’s local procurement report sparked conversation, as companies contacted Mining Shared Value in the interest of finding ways to improve local procurement reporting and programming. This report aims to repeat this success and maintain the conversation around local procurement as a responsible mining activity.

Local procurement is of growing interest for Canadian mining companies:

In examining the data collected from the 50 largest Canadian mining companies’ 2012 and 2013 corporate responsibility and annual reports, it can be seen that local procurement is increasingly being considered an important responsible mining practice to emphasize in public reporting.

  • The majority of Canadian mining companies are now reporting on local procurement as part of their corporate responsibility reporting
  • On average, the level of detail for reporting increased from reporting for 2012 to reporting for 2013, with more companies reporting on programs and statistics on local sourcing
  • The number of mining companies who reported an official local procurement policy increased from 10 to 15, from 2012 to 2013.

Leading Canadian companies for public reporting on local procurement:

The leaders in local procurement reporting for 2012 and 2013 were Suncor, Cameco, Yamana, Agnico Eagle Mines, IAMGOLD, Centerra Gold, and AuRico Gold. Special mention is also given to AuRico Gold, Centerra Gold, and Kinross Gold. When examined, content from their 2013 corporate responsibility reports answered 100% of the local procurement questions that our survey included.

Opportunities for improvement

It was exciting to see that from 2012 to 2013 corporate responsibility reports, Canadian mining companies generally improved the level of detail they provided on local procurement.  However, there are still opportunities for Canadian companies to improve their reporting, and in turn their performance, on local procurement. Some companies still do not publicly measure what proportion of their procurement spending goes to local suppliers, and many do not have systematic strategies or policies in place.

EWB’s Mining Shared Value venture looks forward to constructively engaging with Canadian companies and their stakeholders to help improve the economic and social benefits of mining activity.

Jeff Geipel is the founder and venture leader for Mining Shared Value at Engineers Without Borders Canada. This venture works to improve the development impacts of mineral extraction in developing countries through encouraging an increase in local procurement by mining companies.

You can follow the work of Mining Shared Value on Twitter @ewb_msv

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