Local Opportunities Management (LOM)
Constancia Project, Cusco, Peru
From 2012 to 2014 SCG developed a program to manage the local business opportunities arising from the construction of the Project on two Quechua farming communities in the future mine’s area of influence.
Strategic business sectors were identified and existing enterprises were registered and evaluated with the participation of both communities. These enterprises then received technical assistance to help them become formal businesses, obtain authorization and start functioning. This register of local suppliers included more than 200 authorized businesses, including light transport, machinery and food sectors that complied with commercial, tax and health and safety standards. During 2014, 169 local suppliers, from both communities, billed the project more than 28 million dollars. The program included a close-of-construction process to help local enterprises reorient their activities and develop links with other markets outside of the mining project.
The local businesses signified an attractive deal for the Project and its contractors, given that they not only complied with the required standards, but also offered competitive prices. This often meant that the Project saved money.
Furthermore, the Project’s commitment to promoting these local opportunities helped them to advance without conflict which meant they could start operations on schedule at the end of 2014.