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Adopt the Mining Local Procurement Reporting Mechanism (LPRM)


Segment    Family    Class




SDG Alignment

8. Promote development-oriented policies that support productive activities, decent job creation, entrepreneurship, creativity and innovation, and encourage the formalization and growth of micro-, small- and medium-sized enterprises, including through access to financial services.

SDG Target


Target Description

Promote policies to support job creation and growing enterprises

Level of Effort

Level of Effort Scale


1 -Quick Wins: solution involves adding criteria for the good or service being purchased (ex: certifications), minimal internal process changes.

2 -Long Term Adoption: solution requires some changes to internal processes and/or more capital investment (ex: digital transformation to reduce paper use).

3 – Disruptive Opportunities: requires significant investment and changes to internal processes (ex: retrofitting building)

Category Assessment

ETCH Procurement Process .png


•Assess the current gaps in environmental and social impacts of your operations and reporting frameworks that allow your organization to demonstrate adherence to the provisions of sustainability frameworks.

•Leverage the Mining Local Procurement Reporting Mechanism (LPRM) to understand gaps in local supply development and highlight areas and opportunities for further development

Opportunity Identification 

Business: Mining companies can create business value by increasing the amount of information available on their local procurement efforts – both by demonstrating the value they are creating for host economies, and by showing evidence that they have systems in place to prevent allegations of wrong-doing involving suppliers

Sustainability: Improving transparency by taking Anti-Corruption Measures, promoting ethical business practices for labour laws, and encouraging larger companies to support/engage in enhancing economic opportunities for local suppliers/vendors.

Strategy Build & Execution

• Get acquainted with the LPRM resources, as they contain a series of disclosures to guide your mining company’s reporting on your local procurement policies, processes, and results.

• Identify gaps in information/resources your organization may not have available to report

• Align key stakeholders with the importance of LRPM reporting

• Create policies and requirements for yearly LRPM reporting

Supplier Negotiation & Contract

•Roll-out procurement standards or minimum anti-corruption policies to high-risk suppliers

•Consider working with local suppliers or negotiating local community investment percentages to build the local economy capacity

•Work with legal to contract where relevant and possible regular reviews of standards and practices

Supplier Performance & Management

• Maintain records for compliance, bribery and anti-corruption policies/occurrences. Track the progress and areas of improvement in implementing the LRPM policy.

• Benchmarking: Are strategies improving on local procurement and are they in line with global best practices to implement supplier due diligence systems that help prevent problematic practices and corruption risks?

• Perform annual reviews with internal stakeholders after implementing the policy to discuss benefits and challenges.

•Evaluate the commercial impact of the new LRPM policy with investors and stakeholders.

Resource Links

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