Global and local extractive industry

Mining Local Procurement Reporting Initiative

Metal processing

Many developing countries adopt local content regulations in order to boost local value added in the face of foreign competition and to establish a local supply and processing industry in the long term.

But how much is actually procured or processed locally? How much value added is local, and how much stems from abroad? What do mining companies spend on social investment, and how are national local content regulations complied with? While national governments bemoan the failure of the extractive sector to integrate into the domestic economy and increasingly rely on regulation, mining companies emphasise their social investment in the form of financing for local infrastructure or support for small entrepreneurs in mining regions.

In order to make these various practices, strategies and policies transparent and comparable and in order to foster local procurement in the long run, the Extractives and Development sector programme develops the Mining Local Procurement Reporting Initiative (LPRI) on mining companies’ activities on local content or procurement together with the Mining Shared Value (MSV) Initiative. The aim is to use a reporting framework to enable the extent and depth of local value added through local procurement to be made available to (local) government, industry and industry chambers and the public.

Extractives and Development is currently in the testing phase of the LPRI. The reporting framework is being piloted in three countries, and will be presented and discussed at various conferences. It is intended that it will be implemented as part of a participatory multi-actor process involving all relevant stakeholders in the sector, such as governments, mining companies, donors and civil society.

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