Codelco El Teniente Division has reached, so far this year, 434 million dollars in the purchase of goods and services from local companies, distributed among 1,400 suppliers, which include large companies as well as small and medium-sized companies. Among the latter, 78 are active local suppliers, from whom purchases of goods and services for 94 million dollars were made.

In this way, the Division increased its purchases from local suppliers by 4.7% annually and exceeded the divisional goal established by 2.7%. This growth is related to the “Territorial Development Strategy with Social Value”, promoted for all Codelco operations and represents the divisional strategy of generating economic, social and environmental value in the communities where its operations are located and its commitment to strengthening the local economy through companies of various sizes, sectors and specialties.

The general manager of El Teniente, Andrés Music, recalled that “our purpose is clear and guiding: We give everything for Chile. And to fulfill it, in addition to the traditional economic value that we have always generated, we add the social and environmental variables. In this line, it is essential to support more strongly than ever the economic development of the territories and communities that surround us because positively influencing our communities, through the purchase and hiring of local labor, generates an environment conducive to the harmonious development of El Teniente and its areas of influence.”

Teodoro Schmidt, Codelco's Senior Territory Development Specialist, explained that "this year, we were very pleased to receive the local purchasing data in El Teniente because we observed a notable growth of local small and medium-sized companies. Some companies have changed category and have become large companies, which means that they have boosted their turnover and their development with better conditions."

Comprehensive support for suppliers

This success is the result of various actions implemented by Codelco to encourage the promotion of local suppliers. Among them, the implementation of the corporate program "Juntos Emprendemos de Local" stands out; an initiative executed in collaboration with the Simón de Cirene Corporation and Gestión Social. Thanks to a series of measures of the program, more than a thousand accompaniments were provided to 323 companies in 32 tenders.

The Director of Community Development, Cristián Sanhueza, stated that “it is an initiative that promotes small and medium-sized businesses in the O'Higgins region. This allows, through training and support, to generate opportunities for bidding, development and growth, strengthening a relationship of mutual growth. These initiatives reinforce El Teniente's commitment to sustainable development, the regional economy and the social value of the region.”

More competitive SMEs

In parallel, comprehensive support has been provided to local suppliers to strengthen their competitiveness in internal areas of the Division such as commercial management, updating of processes and corporate standards. In addition, work tables, specialized workshops, committees and learning capsules have been organized, which contributes to the development and sustainability of these suppliers.

Nancy Coronado, Supply Engineer of the Division's Administration Management, explained that "local suppliers have been invited to the bidding processes, both those that are only for locals and those for open processes. They are evaluated technically and economically, complying with corporate procedures. In many cases, they have been awarded contracts, allowing the Division to count on their services, which, moreover, are of excellent quality."

This initiative is part of Codelco's commitments for 2030, which include the development of the territories. The goal is to increase goods and services from local suppliers by 60%.

“A virtuous circle”

Patricio León, global manager of Frantom Ltda, a company dedicated to high-tonnage crane services, from 30 to 450 tons in different areas of the Division, commented that “being a local supplier is key for us because it allows income to remain in our area, strengthening the regional economy. This creates a virtuous circle where capital remains in the region, driving the growth of local companies, which is key to economic development.”

In the case of FYV de Servicios Integrales Limitadas, a company that provides minor civil works services and has nine Coya workers, its representative Viviana Núñez, highlighted that “local purchasing is important, both for the company and for the workers. Currently, we benefit nine families through these jobs. In addition, wherever we work, we try to purchase products from local suppliers, thus promoting a circular economy in the territory.” Viviana Núñez.