Top miners adopt ESG and transparency reporting framework www.mining.com
Mining Shared Value, a non-profit initiative of Engineers Without Borders Canada, has announced that twelve mining companies have now adopted the Mining Local Procurement Reporting Mechanism (LPRM), to report on a total of thirty-four mine sites across nineteen countries.
The LPRM is a publicly available framework of twenty-two disclosures, developed by MSV and commissioned by the German development agency GIZ, with support from Germany’s Federal Ministry for Economic Cooperation and Development (BMZ).
Growing use of the reporting framework is happening amidst increased focus on local sourcing and supply chain due diligence in the rush for green energy minerals.
Ivanhoe Mines became the first company to implement the LPRM in 2019. Now a total of twelve companies are using it, including Freeport-McMoRan, New Gold, and Lundin Gold.
Solaris Resources is the first exploration company in the world to use the LPRM and reports on its Warintza project in Ecuador.
Earlier this year, Onyen Corp. also announced the addition of the LPRM to its ESG reporting software, offering user companies the ability to report in accordance with the disclosures, while eliminating duplicative reporting and centralizing data collection and management.
The LPRM is designed to promote and standardize information sharing on local procurement at the site level and aims to identify opportunities for improving transparency of spending, as well as policies and systems that support procurement from local suppliers.
As procurement of goods and services represents the largest payment from a mining operation to a host country – often exceeding direct wages and taxes combined – local procurement can be a critical lever for the creation of short and long-term benefits in mining communities, MSZ said in a media release.
“As demand grows for minerals required for the energy transition, mining sector procurement of goods and services has significant potential to drive economic and social impacts for mining host countries, and it can be instrumental in strengthening a company’s social licence to operate”, MSV managing director Jeff Geipel said in the statement.
“The Mining LPRM is a publicly available reporting framework that helps companies refine their approach to local procurement and provides practical information to host country suppliers and other stakeholders,” Geipel said.
The LPRM encourages companies to disclose information on policies and commitments, spending on goods and services sourced from local suppliers, development programs and support made available to local suppliers, as well as supply chain due diligence efforts.
Published Date:2022-12-07