Gold miner boosts local procurement

29 June 2011

29 June 2011 | Adam Leach

Mining company Freeport-McMoRan Copper &Gold increased local sourcing by six per cent in 2010, compared with the year before.

The company’s 2010 Working towards sustainable development report, published this week,says the business sourced more than a quarter of all its goods and services from local organisations in 2010.

A total of 27 per cent of the $6.80 billion (£4.25 billion) the company paid to suppliers went to support local businesses. This includes mines in Congo, Indonesia and Chile.

The report said: “Our global supply chain policy encourages consideration of local suppliers when there is a benefit to the communities in which we do business. As we evaluate and implement significant expansion projects, we are aware of the potential impacts that procurement activities can have on local communities during construction, start-up and operation.”

The company has also updated its contractor safety manual to bring supplier’s behaviour in line with its health and safety policy. And suppliers are now expected to follow the same incident reporting structure as the company – failure to do so will potentially result in contract termination.

One employee and one contractor died last year on Freeport-McMoRan Copper & Gold sites, but the number of workforce fatalities, including contractors, has reduced each year since 2007, when there were six.

Freeport-McMoRan Copper & Gold also launched a web-based corporate community grievance management system to record, process and respond to local community complaints. The group said: “In 2011, we are evaluating the effectiveness of the system and providing additional training and support in grievance resolution.”

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