Local content policies

The document outlines a four-step process for governments to leverage mining investments for national development: aligning with national objectives, taking stock of current capabilities, crafting specific policies, and establishing monitoring mechanisms. It details five types of local content policies: local procurement, direct employment, horizontal linkages (infrastructure and capabilities), downstream beneficiation, and the fostering of national mining firms. The guide emphasizes that policies must be context-specific, gender-equitable, and compliant with international trade and investment laws, while warning that automation may reduce future employment and procurement opportunities.

• Local content policies are highly context-specific, and there is no universal template for success because countries differ in resource endowments, local skill sets, infrastructure, and investment environments.
• Governments should follow a four-step sequence to implement local content: first, ensure fit with national development objectives; second, take stock of the sectoral context and gaps; third, craft specific policies; and fourth, establish monitoring, review, and enforcement mechanisms.
• Local procurement policies can increase national GDP more than taxes and royalties and can serve as a gateway to economic diversification if suppliers eventually move into non-mining sectors.
• Local direct employment policies are often the first step in local content strategies because they build the foundational skills necessary for more complex horizontal and downstream linkages.
• Horizontal linkages can be developed through two channels: infrastructure-led (where mining infrastructure like roads or power benefits other sectors) and capabilities-led (where technology and skills from mining are applied elsewhere).
• Downstream linkages (beneficiation) aim for diversification within the mining sector but are risky; success depends on whether a country can remain globally competitive in processing, which is often driven by cost factors and energy access rather than just proximity to raw materials.
• Policies to foster national mining firms, including state-owned enterprises (SOEs), can provide sovereign control and social development mandates but risk inefficiency, corruption, and political interference if not managed with commercial independence.
• Technological evolution, specifically automation, is expected to reduce employment per unit of value, particularly for low- and mid-level skilled jobs, and decrease domestic procurement for employee-linked services like food and housing.
• Local content requirements may conflict with international trade and investment law, specifically WTO rules on trade-related investment measures (TRIMS) and bilateral investment treaties that prohibit performance requirements or forced joint ventures.

APA

Cosbey, A., & Ramdoo, I. (2018). Local content policies. International Institute for Sustainable Development. https://www.iisd.org/system/files/publications/igf-guidance-for-governments-local-content.pdf

Chicago

Cosbey, Aaron, and Isabelle Ramdoo. Local content policies. International Institute for Sustainable Development, 2018. https://www.iisd.org/system/files/publications/igf-guidance-for-governments-local-content.pdf.

Wikipedia

{{cite report |last1=Cosbey |first1=Aaron |last2=Ramdoo |first2=Isabelle |title=Local content policies |publisher=International Institute for Sustainable Development |date=July 2018 |url=https://www.iisd.org/system/files/publications/igf-guidance-for-governments-local-content.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{cosbey2018local, author = {Cosbey, Aaron and Ramdoo, Isabelle}, title = {{Local content policies}}, institution = {International Institute for Sustainable Development}, year = {2018}, month = jul, url = {https://www.iisd.org/system/files/publications/igf-guidance-for-governments-local-content.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }