Developing Sustainable Local Supply Chains
Excellent supply chain management is essential to the efficient functioning of our mines. It also provides an excellent catalyst to spark entrepreneurship, stimulate economies and improve standards in our host communities and countries. Our supply chain policies and procedures prioritise the use and development of local suppliers wherever practicably possible.
We choose our suppliers based on a combination of quality, cost, location and compliance with our policies and standards. Supplier due diligence is a fundamental part of our supplier selection process and as shown in the integrating sustainability concerns into our supply chain table, continues throughout the life of a supply agreement.
Our pre-supply checks include, prequalification checks, including know your supplier checks to identify any potential legal, ethical or reputational risks. All supplier contracts include mandatory clauses to ensure they (and sub-contractors) adopt our human rights (including preventing modern slavery), anti- corruption and environmental policies. We also conduct weekly and monthly supplier performance assessments that include KPIs linked to sustainability factors. Where suppliers fail to meet a performance target of 80%, we introduce corrective action plans. We also conduct a number of formal supplier audits every year.