B2Gold spent US$105m on local expenditure


B2Gold said in its ‘Responsible Mining Report 2023’ that the Otjikoto Mine has consistently focused on improving local procurement levels since initial construction.

The company said in 2023, 61% of the procurement came from in-country purchases, with approximately 3,7% out of onshore purchases spent directly on small- and medium-sized enterprises within the mine’s area of influence.

B2Gold Namibia has over 1400 suppliers enrolled in its database, of which approximately 95% are Namibian registered and 4% are South African registered. In 2023, the total expenditure at the national level was US$105 million.

Otjikoto said it also encourages its suppliers to support local social development programmes. Since 2022, B2Gold Namibia has been facilitating a programme to increase local content opportunities through the cross-sector collaboration to prioritise local procurement, a group of Namibian companies and suppliers.

“The programme is focused on sharing resources and costs and increasing opportunities for small- and medium-sized enterprises to conduct business with industry,” the company said.

The company focuses on companies registered in municipalities within the Otjozondjupa region (Otjiwarongo, Otavi, Outjo, Tsumeb and Grootfontein) and companies registered in Namibia, owned by Namibians.

B2Gold said in Namibia, the expectations of regional and national communities for responsible industrial-scale companies to prioritize local procurement are significant.

“However, achieving this goal requires a delicate balance between meeting cost efficiencies and production demands.”

The company said since late 2022, B2Gold Namibia, Dundee Precious Metals, Ohorongo Cement and the Navachab Gold Mine have united their efforts in leveraging the collective experience and knowledge of their supply chain departments to prioritize local procurement wherever possible.

“This collaborative endeavour has already yielded promising results, fostering robust inter-company relations and significantly enhancing the understanding of the local procurement landscape.”

B2Gold said through effective information-sharing, select group members have streamlined their road transport resources, leading to improved distribution efficiency and cost savings.

Moreover, B2Gold’s supply chain team has achieved notable milestones, including negotiating 24-hour commodity support from specific vendors, achieving a 24-hour turnaround time for manufacturing, and securing round-the-clock technical support.

“Crucially, all participants have committed to similar procurement policies, thus effectively combating vendor fraud and facilitating the exchange of vital information on such activities among the companies.”

The company said this initiative not only underscores B2Gold Corp.’s commitment to sustainable business practices but also demonstrates the power of cross-sector cooperation in advancing local procurement priorities while ensuring operational excellence.

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