Monday 2 April 2007

Mopani’s new procurement system worries local suppliers

The Post reports today that Mopani Copper Mines, owned by Swiss mining giant Glencore, has entered into an agreement with a Dutch company Quadrem to manage their procurement procedures.

Kantanshi MP Yamfwa Mukanga said the system would only help create employment and wealth for foreigners. Citizens Forum Copperbelt chairperson Mike Kabuli said Mopani should have engaged a local firm.

As reported in For Whom the Windfalls?, procurement has been a topic of significant controversy on the Copperbelt with mining companies accused of intentionally destroying the systems that operated under ZCCM in order to favour foreign suppliers of goods and services previously sourced locally.

The system will be managed via the internet. Requests for quotations will be issued electronically to suppliers who respond electronically and that orders would be delivered to them via the same system. Prospective suppliers to Mopani will now be required to pay subscription fees to Quadrem in order to register as suppliers. Fees for joining the RFQs (Request For Quotations) system have been pegged at US$3,000 for six months. Suppliers will be billed after receiving five requests. Membership fees range from US$600 for micro suppliers to US$8,000 for very large suppliers.

Mopani management told The Post that they had chosen Quadren due to their "Web Trust Certified which is an independently audited endorsement that information traded via their marketplace is secure and confidential.” Quadrem is well known globally, managing supply chains for international mining houses. They are yet to establish their Zambian operations.

1 comment:

Mining Suppliers said...

It is said that, Quadrem is well known globally, managing supply chains for international mining houses.