LOCAL PROCUREMENT AND EMPLOYMENT STRATEGY - GUIDING PRINCIPLES -

Transcription

1 LOCAL PROCUREMENT AND EMPLOYMENT STRATEGY - GUIDING PRINCIPLES - Objectives These Guiding Principles express Nemaska Lithium s cmmitment t cntributing t the ecnmic develpment f lcal cmmunities where it cnducts its activities by surcing emplyees, gds and services frm lcal businesses, addressing the gaps in lcal capability, and building suppliers cmpetitiveness in rder t meet glbal standards and qualify fr cntracts with the peratr and ther clients. The Principles include the fllwing specific bjectives: integrating lcal businesses within the supply chain; identifying missing links in the value chain and priritising these in attracting new businesses t the area; facilitating lcal business ventures, anticipating future changes in Nemaska Lithium s demand fr gds and services; creating an enabling envirnment fr business develpment by prmting cllabratin between the lcal business cmmunity, gvernment and develpment agencies. These bjectives will be transfrmed in actins such as the adptin f guidelines as t hw t deal with ptential tensin between prmting lcal prcurement and minimising csts. The pririty will always be given t cst cntrl and effectiveness and thus lcal businesses will be favred as lng as they are cmpetitive and qualified. In rder t maximize its effectiveness and adequacy with the lcal cntext, these principles will be refined; fr the mine site, in cllabratin with Cree and Jamesian stakehlders invlved in the ecnmic develpment f the Nemaska and Chibugamau-Chapais regins (as well as, mre generally, the Eeyu Istchee James Bay regin). With regards t the hydrmetallurgical plant t be lcated in Shawinigan, stakehlders invlved in the ecnmic develpment f this cmmunity and reginally will als be cnsulted. Als, Nemaska Lithium will participate in industry and multi-stakehlder initiatives t build capacity amngst lcal businesses and will adpt tendering criteria which include an explicit weighting fr lcal businesses. Nemaska Lithium intends t elabrate, in cllabratin with lcal entities, prgrams t assist lcal businesses t pre-qualify and t becme mre cmpetitive. The Strategy will be displayed at Nemaska Lithium s ffices and sites and practively cmmunicated t lcal businesses and ecnmic develpment rganizatins. Peridic internal assessments will be cnducted in cmpliance with the Strategy and perfrmance f cntractrs, subcntractrs and suppliers will be mnitred against specific criteria. Indeed, as afrementined, Nemaska Lithium infrms cntractrs that, while they may have technically qualified by virtue f their inclusin n the bidders list, meaningful engagement f businesses and peple in the area is hw Nemaska Lithium intends t be selecting its preferred cntractrs. These Principles and assciated final Strategy will apply t Nemaska Lithium and als t all f its cnsultants, cntractrs, subcntractrs, suppliers and subsidiaries.

2 What is Lcal? The terms lcal refer t thse cmmunities which are adjacent t, r impacted by, Nemaska Lithium s peratins. Under these definitins, the area is narrwer than the regin r the Prvince in which the prject is lcated and fcuses n the cmmunities (villages, municipalities, cities, MRC). Cnsequently, the fllwing cmmunities are included in the definitins f lcal and reginal fr Nemaska Lithium s prjects: Whabuchi Mine Lcal: Cree Natin f Nemaska and ther Cree natins in Quebec Reginal: Eeyu Istchee James Bay Extended Reginal: Abitibi-Témiscamingue and Saguenay-Lac-St-Jean Prvincial: Quebec Shawinigan s Plant Lcal: Shawinigan (City and MRC) Reginal: Mauricie Prvincial: Quebec All else being equal, Nemaska Lithium has cmmitted in priritizing lcal individuals and businesses fr all f its emplyment and prcurement pprtunities. While it is relatively easy t differentiate lcal frm nn-lcal individuals, the issue f what cnstitutes a lcal business is a cnstant subject f cnsiderable debate. Fr Nemaska Lithium, the key questin t cnsider is whether a business cntributes t building lcal ecnmic capacity. Fr example, a cmpany that maintains a lcal branch ffice which is simply a cnduit fr bringing in gds and services frm utside the regin is having less impact than a freign-wned firm entering a cnsrtium r taking wnership psitins in lcal firms as lng as such partnership allws fr imprtant cntributins (jbs, cntracts, etc.) t lcal ecnmic capacity. Cnsequently, as part f Nemaska Lithium s prjects, the Supply Chain Manager, t be hired as prject develpment will mve frward, will be respnsible fr establishing criteria t pre-qualify businesses as lcal, reginal, prvincial r thers. T d s, in cllabratin with lcal business assciatins, and gvernment agencies, a cmprehensive mapping f lcal businesses will be cmpleted t identify their capabilities and determine which businesses culd benefit mst frm the pprtunity t participate in lcal supply chains. It shuld als be nted that, as per the Chinuchi Agreement Nemaska Lithium signed in Nvember 2014 with the Cree Natin f Nemaska, the Grand Cuncil f the Crees (Eeyu Istchee) and the Cree Natin Gvernment, measures have already been utlined t priritize, as lng as cmpetitive and qualified, Cree individuals and businesses as part f the Whabuchi Mine Prject. Training and Emplyment & Business Opprtunities Whabuchi Mine Prject As afrementined, with regards t the Whabuchi Mine prject, Nemaska Lithium sees the Chinuchi Agreement as an imprtant instrument f ecnmic change and develpment fr the lcal Cree cmmunity.

3 Fr instance, the Chinuchi Agreement includes several cmmitments made by Nemaska Lithium t prmte the integratin, advancement and retentin f Cree emplyees in the mine wrkfrce as well as the awarding f cntracts t Cree businesses, and mre particularly Nemaska Crees: Training and Emplyment In cllabratin with Cree educatinal and vcatinal rganizatins and ther third parties, training prgrams and measures will be designed t increase the number f Cree candidates qualified fr emplyment, including advancement pprtunities; Prviding infrmatin n Nemaska Lithium s shrt- and lng-term wrkfrce needs t the Whabuchi Implementatin Cmmittee established as per the Chinuchi Agreement; Psting f jb penings in varius Cree media and prviding psting infrmatin t the Cree emplyment services entities; Identifying fr all emplyment psitins the assciated requirements, including training prerequisites, and publishing this infrmatin in the cmmunity and t the Cree emplyment services entities; Prviding infrmatin sessins n career pprtunities as well as summer jbs and internships t Crees studying in fields leading t psitins required at the mine prject; Develping incentives t Cree students in prgrams leading t careers in mining-related fields; Establishing pre-emplyment prgrams designed t facilitate the integratin f the Crees in the mine wrkfrce; Establishing the Nemaska/Whabuchi Training Fund fr the delivery f training prgrams (educatinal, vcatinal, and pre-emplyment), particularly prgrams related t the mining industry in general and fr the Whabuchi Mine Prject. Business Opprtunities In cllabratin with Cree Parties, establishing and maintaining a list f Cree businesses, including Nemaska Cree businesses, that have the capacity and are interested in supplying gds r services t the Whabuchi Prject; Fr the cnstructin phase, prviding t the Whabuchi Implementatin Cmmittee a list f needs with respect t the supply f gds and services t be cntracted ut; Fr the peratin and clsure phases, prviding t the Whabuchi Implementatin Cmmittee a list f planned cntracts; Identifying areas f activity, ther than thse currently planned and utlined in the afrementined lists, which wuld be apprpriate fr Cree t establish new Cree businesses; Adpting plus-value criteria fr Cree cntent in cmpetitive tendering prcess; As part f a cmpetitive tendering prcess in which a Cree business tk part but was unsuccessful, cmmunicating with the Cree bidder t explain the areas f weaknesses in the bid prpsal t enable imprvement and increase prbability f future successful bids; Enabling pririty direct negtiatins with qualified Cree businesses prir t engaging a cmpetitive tendering prcess;

4 Establishing the Nemaska/Whabuchi Business Develpment Fund fr the purpse f supprting the develpment f Nemaska Cree businesses. As well, it is Nemaska Lithium s intentin t sn sign a Déclaratin des partenaires (Partnership Declaratin) with the Administratin réginale Baie-James (ARBJ) which is an imprtant reginal rganizatin fcusing n land use and planning fr the nn-native cmmunities f Eeyu Istchee James Bay. As a result f such partnership, Nemaska Lithium wishes t implement an Ecnmic Spinff Maximisatin Cmmittee (r Liaisn Cmmittee) which wuld have the mandate f identifying and publishing jb and cntract pprtunities available t the members f thse cmmunities. Such Cmmittee wuld first aim at establishing a cnsensual strategy fr lcal ecnmic spinff maximisatin, including the elabratin and adptin f cmmunicatin and infrmatin sharing tls. The Liaisn Cmmittee wuld include representatives f Nemaska Lithium and its majr cntractrs as well as f lcal ecnmic develpment rganizatins. Amngst the recmmendatins such Cmmittee culd be making is the adptin f measures t facilitate access t cntract pprtunities fr lcal businesses. Mrever, linkage activities will be rganized annually, prir t the main cntract awarding perids, in rder t gather in the same rm Nemaska Lithium s Supply Chain Management Team, its main cntractrs and the lcal businesses and ecnmic develpment rganizatins. Shawinigan Hydrmet Plant Prject With regards t the Shawinigan Hydrmet Plant Prject, a similar apprach t what is utlined abve fr the ARBJ will be implemented in cllabratin with the Ecnmic Develpment Divisin f the City f Shawinigan and the Chamber f Cmmerce and Industry f Shawinigan (CCIS). Existing cmmittees already having a mandate similar t what Nemaska Lithium intends t d, ex. the Shawinigan Ecnmic Diversificatin Cmmittee, will be used as part f this prcess. Als, the fllwing measures t maximize lcal sci-ecnmic benefits will be implemented by Nemaska Lithium: Training and Emplyment Prviding infrmatin n Nemaska Lithium s shrt- and lng-term wrkfrce needs t the Liaisn Cmmittee; Psting f jb penings in varius lcal media and prviding psting infrmatin t the Liaisn Cmmittee; Identifying fr all emplyment psitins the assciated requirements, including training prerequisites, and prviding this infrmatin t the Liaisn Cmmittee; Prviding infrmatin sessins n career pprtunities as well as summer jbs and internships t lcal individuals studying in fields leading t psitins required at the hydrmet plant prject. Business Opprtunities In cllabratin with lcal ecnmic develpment rganizatins, establishing and maintaining a list f lcal businesses that have the capacity and are interested in supplying gds r services t the Shawinigan Hydrmet Plant Prject; Fr the cnstructin phase, prviding t the Liaisn Cmmittee a list f needs with respect t the supply f gds and services; Fr the peratin phase, prviding t the Liaisn Cmmittee a list f planned cntracts;

5 Mnitring Identifying areas f activity, ther than thse currently planned and utlined in the afrementined lists, which wuld be apprpriate fr lcals t establish new businesses; Adpting plus-value criteria fr lcal cntent in cmpetitive tendering prcess; Enabling pririty direct negtiatins with qualified lcal businesses prir t engaging a cmpetitive tendering prcess. Even thugh lcal prcurement and emplyment can be a significant bst fr ecnmic grwth and diversificatin, such strategies can als lead t adverse scial impacts. Fr example, setting inapprpriate targets can encurage perverse behaviur. Similarly, lcal peple are ften drawn frm ther businesses and much-needed services in the area while lcal businesses can be left vulnerable t the business cycles f large industrial prjects. Cmmunity dissatisfactin can result frm seeing nly menial wrk being given t lcal peple and targeting particular grups can negatively affect scial chesin. Fr these reasns, it is imprtant t mnitr regularly the impact f the Strategy. T d s, Nemaska Lithium intends t use key perfrmance indicatrs that 1) are recgnized by bth ecnmic develpment entities, gvernment agencies and academics; and 2) have been used by ther prject prpnents ver the last decades. Indicatrs measuring Nemaska Lithium s prjects activity as well as their utcme n lcal businesses and ecnmy (develpment, diversity, sustainability, etc.) will be adpted in cllabratin with its lcal partners.