Local procurement

The goal of Kenmare Resources’ Local Procurement Strategy is to ensure socio-economic upliftment of the communities in which we operate. To achieve this, Kenmare continues to support the development of a local supply chain through sustainable procurement in the local market. We do this through the following mechanisms:

  • Communicating openly with stakeholders in relation to procurement
  • Facilitating the establishment of small and medium-sized enterprises (SMEs) by local suppliers
  • Supporting local suppliers to access procurement opportunities
  • Prioritising procurement from local suppliers
  • Providing ongoing training and development for local suppliers’ SMEs

How Kenmare defines Local Suppliers

Kenmare categorises local suppliers based on the following three geographic locations:

Local supplier category

Registered in Mozambique?

Location of permanent presence?

District

Yes

Within the boundaries of both Moma and Larde

Provincial

Yes

Within the borders of Nampula Province

National

Yes

Within the borders of Mozambique

In addition, Kenmare also considers the following factors when assessing local suppliers:

  • Local ownership and funding
  • Percentage of Mozambican nationals employed in the workforce
  • Management skills and experience

Local Supplier Database

Kenmare encourages local suppliers to register their details on the company’s database, which can be accessed via the following link:

Local Supplier Database

The aim of this database is to enable Kenmare to ensure local suppliers are aware of procurement opportunities, thereby increasing their participation in the company’s supply chain. Once registered, local suppliers will have the opportunity to participate in the company’s tenders and Requests for Quotations. Kenmare will also work to actively identify SMEs with the potential to become local suppliers.

Kenmare uses this database as a tool to validate and assess local suppliers. Selected local suppliers are invited to participate in the company’s due diligence process. If successful, local suppliers are then listed as one of Kenmare’s approved vendors.

Kenmare expenditure with local suppliers

Over half of Kenmare’s operational expenditure is incurred within Mozambique, with an increasing proportion of that being spent in the Nampula Province. A summary of local expenditure (separated into operating and capital) is presented below (in US$ million).

Expenditure by supplier type (US$m)

2021

2022

2023

Local

19.5

30.5

31.6

National

84.0

84.0

94.6

International

105.2

99.6

94.6

Total expenditure: operating

208.6

215.6

220.8

Expenditure by supplier type (US$m)

2021

2022

2023

Local

2.9

6.84.4

National

41.5

25.313.9

International

50.8

27.846.3

Total expenditure: capital

95.1

59.964.6