CASE STUDIES

Responsible sourcing for a mining and smelting company

Kumi supported a leading multinational mining and smelting company to update and implement its management system for the responsible sourcing of ores, concentrates and recycled metals. The company sought to streamline its process while achieving full alignment with the responsible sourcing standards set by the OECD Minerals Guidance, the London Bullion Market Association (LBMA), London Platinum and Palladium Market (LPPM) and Joint Due Diligence Standard (JDDS).

The ongoing support we provide demonstrates that the most effective and lasting systems are those built to evolve. Through this partnership, the company not only ensures compliance but also keeps innovating to overcome new challenges and strengthen its position as a responsible industry leader.

Audit preparation and successful outcome

Our support to prepare for LBMA, LPPM and JDDS audits included:

Reviewing the company’s policies, processes and tools, and interviewing internal stakeholders to assess the company’s alignment with standards’ requirements.
Reviewing documents, policies, and protocols for the company to implement.
Developing an audit guide for internal use and capacity building materials to prepare the company for audits. Kumi also helped the company to gather the necessary evidence prior to its audits.

The company successfully passed the LBMA and LPPM audits and retained its previously acquired accreditations.

Continuous improvement and ongoing support

Aligning with its ambition to go beyond responsible sourcing compliance and strengthen its position as an industry leader, the company retained Kumi for an ongoing partnership to support with continuous improvement and implementation of the program. Our work includes:

An ongoing review to streamline the due diligence process while maintaining alignment with relevant standards.
Improvement of due diligence tools such as self-assessment questionnaires (SAQs) and on-site visit protocols, including tailored adaptations for different supplier types and materials.
Conducting in-person and virtual training sessions, incorporating practical use-case scenarios, for internal stakeholders to bridge the understanding between the company’s activities, the responsible sourcing process and the underlying standards’ requirements.
Risk briefing on specific commodities and regions.
Desk-based investigations and risk analysis of existing or prospective suppliers/customers’ operations.

Overcoming challenges

Over the course of our ongoing engagement, we keep focusing our approach to overcome key challenges including:

Aligning the process with internal stakeholders’ (compliance, purchasing, sales, etc.) respective expectations and imperatives.
Adopting a risk-based approach, prioritising actions based on the severity and likelihood of adverse impacts and instilling a mindset that prompted measures proportionate to identified risks.