Target Customer Due Diligence for a European Mining Machinery Producer

The client, a leading European mining machinery producer, was contemplating the expansion of a product line within the Chinese market. Yet, due to their stringent ESG (Environmental, Social, and Governance) and CSR (Corporate Social Responsibility) policies, they harbored concerns about possible policy violations. Consequently, they sought assistance in identifying an appropriate customer base to avert potential non-compliance issues.

The client partnered with ARC Consulting for an in-depth evaluation of the proposed mining sites and their compliance with international standards. The ARC Consulting team executed a comprehensive due diligence process for , while also investigating market trends and regulatory shifts that could influence the broader business environment and our client’s future operations.

Open cast mining

With the due diligence process of the target customers, the client would be able to strengthen their stakeholder relationship by improving their reputation, and thus their brand image. In addition, the client would also be able to understand more thoroughly the market conditions of the Chinese market, attaining the clarity necessary for successful expansion into the market.

Leveraging its significant experience in China, a proficient team of consultants, and a proven history of executing CSR due diligence, ARC Consulting was well equipped to extend the requisite expertise for performing the client’s customer pool due diligence.

The ARC Consulting team first prepared detailed questionnaires and created an assessment framework tailored to the client’s needs and requirements. After this, the team carried out on-site inspections and interviews with companies’ managers to determine corporate structures and conflict mineral compliance procedures. Additional interviews with local staff were conducted to further verify the information provided by the management teams. This measure also helped ARC Consulting to gain further insights into these companies’ daily operations.

The findings from these steps were subsequently analysed and translated into concrete recommendations, with a focus on identified EHS (Environment, Health, Safety) issues at the mining/manufacturing sites and mitigation strategies.

Moreover, ARC Consulting identified micro and macro trends in the industry, giving our client a comprehensive understanding of new developments in the mining sector, potential equipment suppliers, and emerging market opportunities.

ARC Consulting delivered to the client a thoroughly assessed list of potential customers/mining companies that could fulfil the client’s high requirements regarding ethical standards. This comprehensive study heightened our client’s awareness of both the risks and opportunities inherent in the Chinese market. Through ARC Consulting’s diligent work, the client gained a well-rounded understanding of the Chinese market’s potential. As a result, they successfully expanded their operations while safeguarding against the potential adverse effects of unethical mining practices.

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