Standing Up Procurement on a Greenfield Mine

The challenge

A mining company developing a new site in a remote region needed a working procurement function before first production. There were no existing suppliers, contracts, systems or local team, and the construction schedule would not wait for any of them.

The approach

The team prioritised by consequence. Long-lead equipment, critical consumables and services essential to safe operation were sourced first, while routine categories were covered through interim arrangements. Policies, approval limits and a basic purchasing system were set up early so that urgency did not become an excuse for uncontrolled buying.

Local supplier development formed part of the plan from the beginning. Procurement engaged with nearby communities and businesses to understand what they could supply, explained qualification requirements openly, and designed some packages so that smaller local firms could compete. Recruitment and training of a site-based team ran alongside the sourcing work.

What changed

The site reached first production with critical supply arrangements in place and a functioning procurement team on the ground. Governance was established from the outset rather than retrofitted, and local suppliers became part of the supply base rather than an afterthought.

Lessons for practitioners

On a greenfield project, sequence procurement by operational consequence and put basic controls in place before spending accelerates. Local supplier participation takes time to build, so it needs to start alongside the first sourcing decisions, not after them.