Local procurement
The goal of Kenmare’s local procurement strategy is to ensure that people living in Moma’s host communities share in the benefits of the Mine as much as possible.
To achieve this, Kenmare continues to support the development of a local supply chain through sustainable procurement.
The Company does 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? |
|---|---|---|
| 1. District | Yes | Within the boundaries of both Moma and Larde |
| 2. Provincial | Yes | Within the borders of Nampula Province |
| 3. National | Yes | Within the borders of Mozambique |
In addition, Kenmare considers the following factors when assessing local suppliers:
- Local ownership and funding
- Percentage of Mozambican nationals employed in the workforce
- Management skills and experience
Kenmare supplier database
Kenmare encourages local suppliers to register their details on the Company’s database, which can be accessed via the following link:
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 then invited to participate in the Company’s due diligence process. If successful, local suppliers are listed as one of Kenmare’s approved vendors.
Kenmare’s 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.
| Expenditure by supplier type (US$ ‘000) | 2022 | 2023 | 2024 |
|---|---|---|---|
| Local | 30,524 | 31,630 | 158 |
| National | 83,956 | 94,634 | 64,258 |
| International | 99,599 | 94,556 | 104,103 |
| Total expenditure: operating | 215,554 | 220,821 | 168,518 |
| Expenditure by supplier type (US$ ‘000) | 2022 | 2023 | 2024 |
|---|---|---|---|
| Local | 6,805 | 4,417 | – |
| National | 25,281 | 13,946 | 36,519 |
| International | 27,781 | 46,280 | 95,076 |
| Total expenditure: capital | 59,867 | 64,644 | 131,595 |