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 training, targeted technical assistance and access to capital to help local small and medium-seized enterprises become suppliers to resource development companies.
Catering to Demand
Catering Las Peñas
At Lundin Gold’s Fruta del Norte project in southern Ecuador, the company originally provided its own catering services. The Foundation helped former catering employees create Catering Las Peñas, an independent company providing catering and housekeeping services to the developing mine. The Foundation has provided financing and technical assistance to support the start-up phase of operations and to enable Catering Las Peñas to better link local agricultural producers into its supply chain.
Las Peñas 2016 Results
* 114% increase in annual sales
* 42 local jobs created
* $660,000 purchased from local producers
Additional income generated by investment
In 2016, every $1 invested by the Foundation has generated an additional $5.48 in the local economy in the form of wages, supply chain purchase and taxes paid to local government.
Making It Easier to Buy and Hire Locally
Candelaria Mine, Chile
The Foundation is helping local suppliers provide goods and services to the Candelaria Mine – a Lundin Mining copper mine – in Chile’s Atacama Region. As part of its Responsible Mining Policy, Lundin Mining now evaluates suppliers based on their ability to buy and hire locally. The Foundation provided technical assistance to Candelaria to help assess the readiness of 80 potential local suppliers.