Local Procurement

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Local Procurement

In carrying out efforts to increase local procurement, KGC staff will adhere to standard operating policies and procedures pertaining to ethics, environmental protection, health and safety, and other key areas.

It is important to note that, as with any gold mine, the only thing we can control is our costs. Therefore, it is important we consider sustainability, quality, and price when we procure goods and services. Although it is one of Kumtor’s priorities to procure goods locally where possible, it is important that our local suppliers meet these criteria.

To improve on local procurement we have several initiatives in place, which includes, for example: advertising our requirements in local newspapers and on our website; procurement presentations; and identifying items currently procured internationally for possible local procurement.

The company will give priority to majority Kyrgyz-owned businesses and, where possible, KGC will support firms that are located closest to the mine. However, KGC will ensure that it does not build new supplying capacity at the local and/or regional level when there are already adequate suppliers in the country. While KGC believes competition among suppliers is healthy, creating excess capacity in certain goods and services will result in fragmented demand that will hurt all suppliers.

In all cases the Kumtor Procurement guidelines, including the International Code of Business Conduct and Code of Ethics apply for verification of business ownership, including the ownership “Know your customer” guidelines. As well, all enterprises (or organizations) wanting to obtain contracts with the Kumtor project must be in compliance with the appropriate Kyrgyz legislation.

The following sections cover key aspects of Local Procurement Policy:

Strategy: We aim to increase the socio economic impact of Kumtor Gold Mine on the Kyrgyz Republic FOR MORE

Local procurement in figures: Despite our continuous efforts for improvement, there remains a significant part of our procurement — FOR MORE

Successful cooperation cases: Some of our stakeholders may be surprised to learn that nearly 600 Kyrgyz enterprises supply our operations — FOR MORE

Looking for local suppliers: KGC is interested in receiving commercial offers from local suppliers — FOR MORE

Requirements for local suppliers: In all cases the Kumtor Procurement guidelines — FOR MORE