Developing local supply chains
Our suppliers are critical to the efficient functioning of all our operations and we have a network of 890 suppliers around the globe that we procure goods and services from. We follow a local first procurement policy, and wherever possible seek to use local suppliers and contractors to meet our needs. By contracting with local suppliers we are able to create additional employment opportunities, raise household income levels, improve skills and to diversify local economies.
All our suppliers must respect our sustainability policies and we include mandatory clauses in supplier contracts to ensure they adopt our environmental, human rights, and anti-corruption policies. These terms extend to their subcontractors whenever practical. Where local suppliers do not meet our standards or are lacking some elements of appropriate environmental and safety standards we try to facilitate skills training and mentoring support from leading international companies to help build local capacity.
POWERING UP LOCAL INDUSTRY
In 2016 we began construction of Azambi, the third hydropower station for our Kibali mine in the DRC. Construction will continue through 2017 and it should start producing power in early 2018. The construction will be carried out entirely by Congolese contractors.
The three local Congolese contractors undertaking the project are Inter Oriental Builders (IOB), Top Engineering Services (TES) and Traminco:
- IOB is responsible for all the earthworks on the site including blasting work, the construction of a rubble masonry wall and the concrete works for the construction of the powerhouse.
- TES is responsible for all structural steel works for the intake structures and the powerhouse.
- Traminco is responsible the concrete works for the intake structures and the all cutting, bending and reinforcement work for the entire project, as well as the installation of the power lines from the plant to the mine.
All three companies have a strong track record with us and, as well as working on previous hydroprojects, have worked on the construction of the Roman Catholic Church, the community soccer stadium and the installation of crushing equipment and conveyors on site. They will work closely with our engineers and capital projects team and we are confident in their ability to deliver a world-class project on time, on budget and up to our standards.
The companies are all grateful for the opportunity. TES general manager Oscar Siviwe explains, “I am a civil engineer by training, and working as an engineer during the RAP construction inspired me to start Top Engineering. We started doing small jobs for Kibali like building the fences for villages and the exclusion zone, then iron sheeting work and brickwork. We now employ 25 people full time and 10 contractors. My ambition is to grow my company to more than 100 people”.
As a part of our partnership approach Randgold has helped IOB, TES and Traminco with training, including full safety training, which has helped them reach international best practice standards, and these efforts are having a trickle-down effect.
Mr Siviwe continues, “Randgold has helped us to grow and learn. Before we started work at Azambi, they sent us to South Africa for training on capital projects. This has helped us to better understand how to manage risks in capital projects and how to make sure we will run a profit, and safety standards. We only pay back the cost of the training when the project ends, which helps us. My plan is for my company to do the same. I want to start a training centre in Durba, where we can train people in plumbing, mechanics and civil engineering.”