International mining on the rise, increasing need for contractor screening

Jun 16, 2014

Mines across the world are expanding their operations by opening new locations and increasing production. The Vancouver Sun reported that a mining company in Australia plans to enhance its output by nearly one-fifth, and revealed that Chinese companies are investing in mining operations in Australia and Africa. The increasing globalization of the mining industry makes it essential that hiring companies are well-aware of the business practices used by their suppliers, know if the contractors are compliant with local laws, and share their organizational guidelines with any firm supplying materials or services.

Regulations differ

When businesses choose to work with companies overseas and have an incomplete knowledge of local law, they run the risk of inadvertently hiring a noncompliant company. A hiring company may lack experience with foreign regulations, so contractor prequalification can be important to avoid citations or fines. While many contractors try to abide by government regulations, they may be unknowingly using practices that are frowned upon by the firm that hires them. A contractor may not have considered the other guidelines or sustainability initiatives that the hiring firm requires of its business partners. This risk makes a screening process helpful to both businesses and the contractors they hire.

By screening potential contractors in advance, a company can determine if its potential partners take into account issues that may not be addressed by local law. Working with contractors that do abide by a hiring business' code of conduct allows both companies to rest assured their reputations will remain strong.

By working with BROWZ, a company can ensure its potential contractors abide by both local regulations and its own individual guidelines. Ensuring contractor compliance can put both organizations at ease before they agree to a business arrangement.

Category: risk management