In the extractives industry, procurement economies of scale refer to the cost savings realised by mining corporations via extensive purchases of commodities, services, and machinery. These cost advantages result from things like buying in bulk, having negotiating leverage, and having fewer suppliers to deal with, which increases efficiency. Regions with numerous natural resources and concentrated mining activity have benefited from economies of scale. Such areas frequently draw a concentration of mining firms, which fosters the growth of a solid supply chain network. This gives these areas the opportunity to take advantage of their combined demand, stimulating supplier rivalry and lowering procurement costs. Regions with sporadic or smaller-scale mining activities, however, have difficulty reaching comparable economies of scale. Higher procurement costs and decreased competitiveness might be the results of low demand and disjointed supply networks. These areas could find it difficult to draw suppliers, which would raise costs and limit access to products and services, limiting their ability to industrialise and provide value to the extractives industry.