Local Content Policies in the Mining Sector: Scaling up local procurement

The report examines local content policies (LCPs) in the mining sector, specifically focusing on local procurement. It details how 'local' is defined through geography, value addition, and ownership, and outlines various demand-side and supply-side policy options. The document emphasizes that for these policies to succeed, they must be supported by pre-conditions such as capacity analysis, a conducive business climate, and strong monitoring and enforcement mechanisms.

• Governments implement local procurement policies to address fiscal crises following commodity downturns, advance strategic visions like the Africa Mining Vision (AMV) and Sustainable Development Goals (SDGs), and respond to public unrest regarding the 'resource curse'.
• The definition of 'local' typically relies on three criteria: geography (location of the supplier), value addition (the proportion of processing performed in-country), and ownership (participation of nationals in equity, management, or employment).
• Demand-side policy options include mandated percentages of local sourcing, targeted lists of goods and services (as seen in Ghana), requirements for local procurement plans, tax preferences, and Community Development Agreements (CDAs).
• Supply-side policy options focus on enhancing the capacity of local firms through technology transfer requirements, R&D spending mandates, Supplier Development Programs (SDPs), improved access to finance, and the creation of supplier portals.
• Successful implementation of local procurement policies requires several pre-conditions, including a detailed analysis of local supplier capacity, a conducive business climate, time-bound measures to avoid dependency, and robust anti-corruption governance to prevent 'fronting'.
• Specific national examples illustrate diverse ownership and value-add criteria: South Africa's 2018 Mining Charter mandates specific spending percentages for historically disadvantaged persons and women/youth-owned companies, while Kazakhstan requires a CT-KZ certificate to prove substantial local processing.

APA

Nickerson, E., & Geipel, J. (2019). Local Content Policies in the Mining Sector: Scaling up local procurement. International Institute for Sustainable Development. https://www.iisd.org/system/files/publications/local-content-policies-mining.pdf

Chicago

Nickerson, Emily, and Jeff Geipel. Local Content Policies in the Mining Sector: Scaling up local procurement. International Institute for Sustainable Development, 2019. https://www.iisd.org/system/files/publications/local-content-policies-mining.pdf.

Wikipedia

{{cite report |last1=Nickerson |first1=Emily |last2=Geipel |first2=Jeff |title=Local Content Policies in the Mining Sector: Scaling up local procurement |publisher=International Institute for Sustainable Development |date=March 2019 |url=https://www.iisd.org/system/files/publications/local-content-policies-mining.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{nickerson2019local, author = {Nickerson, Emily and Geipel, Jeff}, title = {{Local Content Policies in the Mining Sector: Scaling up local procurement}}, institution = {International Institute for Sustainable Development}, year = {2019}, month = mar, url = {https://www.iisd.org/system/files/publications/local-content-policies-mining.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }