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Anglo American increases BEE spend by 42% in 2008

09 February, 2009

Anglo American South Africa and its independently managed subsidiaries report a procurement and enterprise development spend of R24,6 billion for consumables, services and capital with black-owned and managed small and medium businesses (SMEs) for 2008.

Anglo American’s small and medium enterprise development and empowerment initiative, known as Anglo Zimele, aims to empower black entrepreneurs through the creation and transformation of SMEs.
 
Key facts and highlights 

  • Total BEE procurement spend and enterprise development up 42% to R24,6 billion for 2008 (2007: R17,3 billion).
  • Highest amount spent is Anglo Platinum (R9,9 billion), followed by Anglo Coal (R4,8 billion) and Kumba Iron Ore (R2,2 billion).
  • The procurement spend equates to 37% of total available spend (excluding goods and services from parastatals and municipalities).
  • During 2008, Anglo Zimele, Anglo American’s enterprise development unit, invested in nine new companies through its Supply Chain Fund, while its junior mining investment arm Anglo Khula Mining Fund invested in two new mining ventures. 
  • Anglo American’s most recently established fund, the Small Business Start-Up Fund, approved 179 loan transactions for small businesses to the value of R51,9 million as at end December 2008. This funding provided seed and working capital for rural-based SMEs to play a sustainable role in their respective communities in the proximity of Anglo American’s operations. The enterprises collectively employ 1,647 people. 
  • On the enterprise development front, the collective turnover by the 228 companies in the Anglo Zimele Supply Chain Fund, Small Business Start-Up Fund and Anglo Khula Mining Fund portfolios amounted to R1,3 billion which, added to the procurement spend of R23,3 billion, totals R24,6 billion. 
  • Anglo American’s cumulative BEE procurement spend since 1993 has reached some R79,1 billion. The BEE procurement spend of R24,6 billion also includes R2,5 billion by De Beers (excluded in 2007 figures); R2,8 billion for Tongaat-Hulett and Hulamin accounted for under the BEE Codes of Good Practice.

Commenting on the Group’s performance in the SME sector, Anglo American South Africa Head, Kuseni Dlamini, said: "It is through supporting  deserving and passionate entrepreneurs that Anglo makes a wider, meaningful and lasting contribution to the efforts to erase poverty and unemployment and contributes to sustainable and inclusive economic growth and development in South Africa. Since 1999, we have made a significant contribution to BEE procurement and business development and I am immensely proud of the opportunity which Anglo American has afforded the deserving entrepreneurs through the Anglo Zimele funds. Our dedication to investing in local suppliers and focusing on local enterprise development is evident by our record BEE procurement and enterprise development spend for 2008."

For further information:

South Africa

Pranill Ramchander, Media Relations
Tel: +27 (0)11 638 2592

Notes to Editors:
 
Anglo American plc is one of the world’s largest mining groups. With its subsidiaries, joint ventures and associates, it is a global leader in platinum group metals and diamonds, with significant interests in coal, base and ferrous metals, as well as an industrial minerals business. The Group is geographically diverse, with operations in Africa, Europe, South and North America, Australia and Asia. (www.angloamerican.co.uk)
 
Anglo Zimele Supply Chain Fund has been a successful facilitator and mentor of emerging black business and the entrepreneurs that drive them for two decades. The word Zimele is derived from the African languages Zulu and Xhosa and is translated as “to be independent” or “to stand on one’s own feet”.
 
Small Business Start-up Fund was founded in October 2007 to aid local economic development, employment creation and poverty alleviation in the communities surrounding Anglo American’s operations. 
 
Anglo Khula Mining Fund, a R200 million joint initiative between Anglo American and Khula Enterprise Finance, a Department of Trade and Industry undertaking. The objective of this fund is to provide financial assistance to fledgling mining ventures during the pre-feasibility stage of a project. This includes exploratory drilling, the preparation of environmental reports as well as applications for permits and mining licences.

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