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CVRD Inco pledges respect for historical supply relationships

A newly established procurement team at CVRD and CVRD Inco will be seeking value for some of their bulk purchases.

A newly established procurement team at CVRD and CVRD Inco will be seeking value for some of their bulk purchases.Under the leadership of Eduardo Ledshan, director of mineral exploration, part of the team’s mandate will be to “maximize our effectiveness in procurement,” according to a CVRD Inco statement.

The idea will be to pool resources to find the greatest value when ordering bulk quantities, said Mark Cutifani, chief operating officer of CVRD Inco.Inco has been a member of Quadrem, a procurement e-marketplace for several years, and, now, CVRD will also use the system.

The impact on the local mining services and supply sector will be minimal because Inco has already secured procurement partnerships with local companies, Cutifani said. Quadrem will be used to consolidate some of the more significant bulk commodity purchases.

For instance, CVRD conducts business with Caterpillar in both Brazil and Sudbury. Both operations were quoted different unit costs for the same product. Under the new procurement strategy, the two companies will qualify for a common price.

Supply companies in Sudbury have much to offer the international market, since they have years of serving some of the deepest base metal mines in the world, Cutifani said.

"The skills and expertise we have in underground mining are as good as anywhere in the world. If that skill can be competitively transported, I think we will be in a good position. This may help give the [Sudbury] mining and service sector more exposure.

"CVRD will be respectful of relationships, but we have always said to the local industry, if you're competitive, you will get the business and if it is line ball, we will go with you because of the local content."

At a recent luncheon hosted by the Sudbury Chamber of Commerce, CVRD Inco's CEO and President Murilo Ferreira repeated the company’s commitment to maintain and grow local relationships.
Reinforcing the mantra that together we are better, the Sudbury Area Mining Supply and Service Association (SAMSSA) is welcoming seven Brazilian companies to Sudbury March 8. The intent is to match Brazilian companies with area suppliers, "so that there is a mutual benefit to both parties," said SAMSSA executive director Dick DeStefano.

SAMSSA members will be offered an overview of the mining and business climate in Brazil along with potential opportunities for partnerships. He said it is the first step in establishing mutually beneficial relationships with foreign companies for procurement purposes.

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