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Local Economic Impacts //

Why It Matters

Through hiring, skills training, supporting suppliers and contractors, and facilitating small business opportunities in host communities, the mining industry has the power to promote local economic development.

Management Approach

We are committed to providing economic value in the form of local job creation, business for suppliers, taxes and royalties that support public finances and essential services, and other contributions. We also work to create opportunities for local economic growth and capacity-building through our Community Investment Program.

Local Procurement

We rely on a comprehensive network of contractors and suppliers to service the business activities of our operating mines, as well as exploration and development sites. We use best efforts to buy goods and services from nearby sources whenever possible. This is not only for competitive pricing purposes, but to also ensure that local and regional communities benefit from our economic activity. In Mexico, much of our supplies and equipment can be acquired locally or nationally, and we only turn to international suppliers to provide us with certain heavy equipment and mineral processing chemicals.

All purchase decisions must be made in compliance with our policy on Contracting Services and Working with Third Parties – which includes criteria such as location, availability and quality of product, service quality and experience, cost, and specifies that priority will be given to local suppliers who fulfill these requirements. We expect suppliers to follow Endeavour’s safety and health, environmental and labour standards, and we are working more closely with our supply chain to ensure these policies are adhered to and become the norm.

Supporting Local Miners

At the Guanaceví mine, we support and engage with local artisanal miners, who mine their concessions on a small scale or hand-sort material from surface dumps and unload small truckloads of ore at our plant for testing and purchase. Per the terms of our operating permit, each year we accept up to 10% of our mill feed from small-scale local miners. Our plant manager supervises the delivery, weighing and sampling of the material, and arranges for payment.

Our Performance In 2017

  • Our total economic value generated in 2017 was $150.5 million, down from $156.8 million the previous year. Our total economic value distributed was $129.7 million, a decrease from $140.4 million in 2016.
  • We spent $66.2 million on goods and services, up from $52.2M in 2016. The year-over-year increase was due to the development of our fourth mine, El Compas. Over 99% of our total procurement came from national or local suppliers within Mexico.
  • In Guanaceví, we supported 12 officially-recognized artisanal miners. As a result of incentives offered last year to boost supplies, we saw an increase of almost 44% year-over-year in material provided by the local miners, from 10,215 tonnes in 2016 to 14,649 in 2017.

2018 Priorities

  • Implement the new sustainable procurement criteria and evaluate at least four suppliers or contractors based on those procedures.