The purchasing power of mining and oil and gas companies can be a powerful catalyst for spurring the growth of the local economy, creating jobs and wage benefits; it is estimated that supply chain activities can create three times more employment benefits compared to direct employment within extractive resource companies. The Foundation supports initiatives to strengthen the local supplier base through technical assistance and access to financing.
Catering Las Peñas
At Lundin Gold’s Fruta del Norte (FDN) project in southern Ecuador, catering services were originally operated by the company. The Foundation supported former catering employees of Fruta Del Norte to form Catering Las Peñas (CLP), an independent company providing catering and housekeeping services to FDN. The Foundation has provided financing and technical assistance to support the start-up phase of operations and to enable CLP to better link local agricultural producers into its supply chain.
CLP has perform exceptionally well, providing high quality daily meal and housekeeping services. In the first six months of operations, CLP has created 30 jobs which have been filled entirely by individuals from surrounding communities. CLP’s own procurement activities are also having additional catalytic impact in nearby communities: the company has contributed over $200,000 into the local economy through purchases from local agricultural producers. With the support of the Foundation, CLP is now preparing to scale operations to meet the projected needs of FDN.