Assessing a mineral supplier: questions for the first review

The first supplier review should establish who would contract, how that party obtains the material and what information is available about the proposed lot. Follow up on inconsistencies before relying on the offer.

The questions below help organise a commercial review. They do not prove fraud or guarantee performance: a discrepancy may have an innocent explanation, but the buyer still needs enough information to resolve it.

The supplier can explain its role

Ask whether the company owns the material, trades it, represents a producer or coordinates access to several sources. There is no need for every participant to be a mine owner. There is a need for each participant to describe its authority accurately.

A credible explanation connects the contracting entity to the source or lot through reviewable agreements or permissions. Be cautious when the role changes each time the question is asked, or when access to information depends on making an unrelated payment first.

The documents describe the same transaction

Compare names, locations, lot identifiers, quantities and dates across the offer, source records and analytical information. Request explanations for material differences.

For Nigerian mineral-title matters, the Mining Cadastre Office is the official starting point for independent checks. A seller’s document should help you conduct that review, not be used to discourage it. ^[1]

Testing can be discussed in practical terms

Ask how samples were collected and whether an appropriate independent sampling and testing procedure can be agreed for the actual lot. Discuss access, timing, retained samples and the process for resolving differences.

SGS’s guidance on mineral and metal sampling underscores the relevance of representative samples. A supplier should not need to claim that a photograph or one selected rock proves the composition of a commercial cargo. ^[2]

The commercial terms are specific

An offer should identify the product, quantity basis, delivery point, inspection arrangements and payment conditions. It distinguishes what is available now from what is expected later.

Look for a willingness to specify responsibility. Ask who contracts, who inspects, who transports and which documents support settlement. Record each responsibility in the agreed terms.

Uncertainty is acknowledged early

A reliable process allows someone to say that a result is pending, a quantity is provisional or a delivery date needs confirmation. Record the basis of each confirmed date or quantity.

Ask what would happen if the assay differs, transport is delayed or the offered material becomes unavailable. A practical response identifies who communicates, what pauses and how the issue is investigated. Agree the relevant notice and response arrangements before ordering.

References can be used appropriately

Where references or transaction records are offered, seek permission to verify them and establish which transactions and activities they cover. One satisfied customer does not certify every source, product or future shipment.

Respect confidentiality. A supplier may need to redact commercial information or arrange controlled review. The relevant question is whether there is a credible way to establish the facts without treating confidentiality as an unlimited reason to provide no evidence.

Make a recorded decision

Create an issues list and decide what must be resolved before the next stage. Do not let time already spent in conversation become a reason to ignore a material gap.

Share the unresolved questions with the supplier and request the records or explanations needed to close them. Keep the responses with the original offer. The decision should state who reviewed the file, any conditions attached to approval and the point at which further checks are required.