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A Blog Post

Mining Supplier Registries in Chile

Written by Catalina Verdaguer

Mining supplier registries have become a useful tool for mining companies to ensure that suppliers meet their high standards in terms of quality, safety, and ability. It allows them to have all the supplier and vendor information in a single database, provides a framework for evaluating companies, and aids in strategic searches of services or products.

On the other side though, it does mean that suppliers need to jump through certain hoops in order to register. Through these registries, suppliers are expected to provide data such as financial and legal records, and other company information like quality, compliance with environmental regulation, occupational health, etc.

A key consideration for METS companies interested in doing business in Chile is the need to register to a Mining suppliers’ association.

In Chile, there are two mining supplier associations:

  • SICEP – “Sistema de Calificación y Evaluación de Proveedores”, or Supplier/Vendor Rating and Evaluation System, and
  • REGIC – “Registro Integral de Contratistas” or Integral Contractor Registry. 

For the vendors and providers, there are also benefits to being registered: 

  • Increases business opportunities by being included in a database where user companies can search for vendors and send tender information to suppliers.
  • Registries also organize meetings between user companies and suppliers.
  • Through the registries evaluation processes, vendor/supplier companies can know where they rank in terms of quality, service, etc., and can improve their competitiveness in the market.

REGIC

For REGIC, the most important company using their system is CODELCO.  It has more than 15 years of experience, is run by Achilles Group, and has over 800 registered vendor and supplier companies.

The main advantage of being registered on REGIC is that the vendors are evaluated and showcased mainly for CODELCO (and other mining companies), thus increasing exposure with the main mining company in the country.

SICEP

The advantages of SICEP is that it has an inexpensive registration fee. To register, there is a process for both Chilean and foreign supplier companies, having to provide legal and financial information and pay an inscription fee.   Once registered, vendor and supplier companies have to pay an annual renewal fee, and be reevaluated every two years.

User companies include Minera Escondida (BHP), Collahuasi, SQM, and AngloAmerican.

To register, there is a process for both Chilean and foreign supplier companies, having to provide legal and financial information, and pay an inscription fee.   Once registered, vendor and supplier companies have to pay annual update fees, and a fee for reevaluation of core competencies (every two years).

The Process:

One of the registries’ main functions is to qualify vendor/supplier companies.  This is done each year.  First, they make sure that the suppliers have their corporate records in order and updated.  They also verify their financials and accounting records. Lastly, they verify health, safety, and HR information to ensure they meet the minimum standards required by mining companies. The required documentation will depend on whether the company has a local branch or whether it is a foreign entity registering.

The process to register can take between 1-2 months depending on how long it takes companies to compile everything requested.

Conclusion:

From our experience, we often see foreign suppliers who have spent a considerable amount of time testing their technology on site and negotiating contracts but did not account for the process of registering with SICEP and REGIC. Mining companies in Chile will negotiate and award contracts to suppliers even if they are not registered, particularly if the product, service, or technology is unique to the market. With that being said, you will generally need to register before you are able to invoice the client so it is often the last hurdle for companies after a long sales process.

We strongly recommend companies that are starting to look at Chile to register since they will have more visibility of tenders and opportunities at the various mines anyways.

Harris Gomez Group is a Common Law firm, with offices in Santiago, Bogotá, and Sydney. Over the last 18 years, we have been supporting foreign companies with their growth in Latin America. Many of our clients are technology companies, service providers and engineering companies that focus on the mining, energy and infrastructure markets. 

To better understand how we can support your management team in the Region, please contact Cody Mcfarlane at cmm@hgomezgroup.com