Global and local extractive industry


Industrial Gold Mine

As part of its development policy commitment to local value addition in the resource sector, the Federal Institute for Geosciences and Natural Resources (BGR) has developed LION, which stands for Local Investment Opportunities in Natural Resource Projects. The innovative approach blends primary data about mines‘ cost split percentages for individual procurement categories with publicly available cash operating costs. Total procurement spend hovers around US$ 5 billion per year in the Copperbelt (Zambia & Democratic Republic of Congo), and slightly more than half for gold mining in West Africa, that is US$ 2,6 billion, where the tool was initially developed. Here you can find the results of both studies.

LION models the markets for procurement products of mining in the Copperbelt and in West Africa, such as the markets for energy, spare parts and sulfuric acid. This information not previously available is an important puzzle piece to promote local value addition. It forms a basis of information for designing effective policies and to marshal support for local economies, for example via Joint Ventures between locally producing companies and international technology providers.

LION model is a product of Enterprise around Mining, a work stream of the BGR sectoral program Ressources and Development. It leverages the substantial purchasing power of the mining sector to strengthen local value addition and hereby foster sustainable economic growth and development.

“The LION tool bridges a major information gap by providing real time historical  operational expenditure data. This is a important set of data, so far not accessible in an aggregated form, key for policy makers and businesses to help them better plan supply chain development. The visualization tool is particularly useful to help assess market potential at a national and reginonal level. “


- Isabelle Ramdoo, Economist at the International Institute for Sustainable Development

"The LION tool is an extremely useful and innovative instrument, which holds the potential to serve several objectives. In particular, this tool can used to assess which upstream activities should be prioritised as part of local content strategies, in addition to revealing the potential transversal linkages between the mining supply sector and others sectors, which can be useful in the context of a diversification strategy."


- Amir Lebdioui, Researcher at the University of Cambridge

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