NEWMONT OPENED LOCAL VENDER SUPPLIERS SUMMIT (Business Page)

23/05/2010
Story: Mary Mensah
NEWMONT Ghana has opened a local vendor registration programme and suppliers summit in Accra to expand its local supplier database and develop business relationships with qualified local manufacturers, service providers, consultants and trading companies.
The summit was also to provide information to prospective local vendors on how Newmont does business in Ghana and to unveil its local sourcing policy.
During the last quarter of 2009 Newmont Ghana, with the full support of the Africa Regional Leadership Team (ARLT), made a decision to develop a Local Sourcing Policy and it was intended that the policy would set out the company’s commitment to local sourcing, but also interface with the broader industry initiative and this was approved by the ARLT on February 8, 2010.
Mr Simon Blamires, an official of Newmont Ghana said currently there are 521 local suppliers doing business with the company and Newmont intend to empower them and to help the economy to grow.
He said trade between the local Ghanaian companies and Newmont stands at $150 million but plans are far advance to increase this amount to either $200 million or $250 million.
He said Newmont intend to enhance local capability by increasing the capital base of the local companies so that they can compete with international companies.
Mr Blamires indicated that throughout the world, and particularly in developing countries, the Social License under which mining companies operate is changing besides the key objective of the Government of Ghana is to increase both the use and development of local manufacturers, suppliers, contractors and consultants.
He said the above objective is required by law and in the investment agreements of several companies including Newmont it is a commitment of this government to the people of Ghana adding that the mining industry is a critical component of the Ghanaian economy and a primary user of many local suppliers and vendor businesses and it is our intention that this increases.
He stated that throughout 2009 Newmont’s SCM group has been working with the Chamber of Mines and the Minerals Commission to develop a local sourcing policy for the industry adding that this work is continuing and a second draft of Memorandum of Understanding (MOU) is expected to be circulated to all stakeholders for review by the end of March 2010.
Mr Blamires said Newmont intends to be the most respected mining company in Ghana in terms of optimising the value of in-country spend and the development of sustainable local businesses.
“To deliver price and quality competitive goods and services, safely and in a timely manner to meet the needs of the business on a “lowest total cost” basis whilst providing transparent opportunities for Local Companies to secure contracts”, he said.
He asserted that Newmont will continually striving to increase the amount of expenditure with and the sustainability of local companies; maximizing the contribution of Newmont Ghana’s mining activities to the broader Ghanaian economy; supporting capacity building and partnering with Local Companies on a broader front with industry groups, NGOs, vendors and investors so as to develop long term sustainable businesses.