SUPPLIERS Supply chain risk management

Supply chain risk management

Our Approach to Risk Management

We are committed to ensuring that Golden Mine Projects maintains a responsible and sustainable supply chain. We take great care in selecting suppliers who adhere to high standards of practice, contributing to good governance, safety, environmental protection, and the well-being of our communities.

Golden Mine Projects has a formal Stakeholder Relationship and Engagement Policy that underscores our dedication to engaging with all stakeholders and fostering positive relationships.


Evaluation of Tender Criteria

In addition to our risk and materiality assessment process, each region has a specific sourcing policy that outlines detailed criteria for tender evaluation, contract award, performance assessment, and prioritization of both commercial and non-commercial factors.

Screening of Third-Party Partners

Building strong, ethical, and professional relationships with third parties in our supply chain is a priority. We conduct thorough reviews to address actual or potential negative impacts. To facilitate this, we employ a third-party screening solution that regularly assesses all registered and active third parties. This screening encompasses various internationally recognized criteria, including regulatory compliance, ethics, labor practices, environmental performance, safety, and operational matters.

Following the monthly screening, we apply an internal risk rating to identify and manage risks associated with third parties, ensuring vendor risk management across our procurement activities.

Managing Significant Negative Impacts

All our contracts include clauses related to health and safety, environmental management, governance compliance, and ethical business practices. We regularly review, assess, and record any adverse media exposure alerts pertaining to environmental, discrimination, or workers' rights issues concerning our suppliers.

Contractual Safeguards

Our third-party agreements enforce statutory compliance and alignment with Golden Mine Projects' Values, Code of Conduct, and internal policies. Contracts also include clauses related to health and safety, environmental management, governance compliance, and ethical business practices. Our contract approval process incorporates a risk assessment and mitigation checklist, further ensuring compliance.

For site services, we perform additional compliance verification in line with mine-site policies before engaging contractors, including independent contractor audits.

Managing High-Risk Suppliers

Suppliers, contractors, or stakeholder groups with the potential for significant negative impacts on our reputation or operations are classified as "sustainability high-risk." We prioritize building positive relations with these parties through engagement and dialogue to address potential economic, social, or environmental challenges.

High-risk impacts may include sensitive, diverse, or unprecedented issues, such as irreversible environmental damage, involuntary displacement of groups, or heritage site impact.

Supplier Risk Assessment and Corrective Actions

Golden Mine Projects conducts regular risk assessments of active and potential suppliers using a Third-Party screening solution. If unacceptable risks are detected, we collaborate with the supplier to implement corrective actions. Periodic site visits and facility inspections may be conducted, along with third-party audits and workforce interviews. Suppliers unwilling to address corrective actions may be disengaged.