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Black economic empowerment procurement

It is important for us to support the local communities where we operate and, in South Africa, ensure that Black Economic Empowerment (BEE) continues to be part of our procurement approach.

An operator from Hi-Quip Hydraulics, an Anglo American supplierHi-Quip Hydraulics, which supplies and maintains hydraulic hoses and fittings, was supported by Anglo American Zimele

South Africa’s Mining Charter requires that companies source a percentage of the goods, services and capital equipment they procure from companies owned or managed by ‘historically disadvantaged South Africans’ (HDSAs). This is a legislative requirement aimed at redressing the economic legacies of apartheid.

In 2009, total BEE procurement spend by managed and independently managed businesses and enterprise development was R23.5 billion (US$3.1 billion). Anglo American-managed businesses spent a total of R18.6 billion (US$2.4 billion) with HDSA businesses, (not including goods and services procedures from parastatal companies and municipalities), exceeding our target of R14.5 billion (US$1.9 billion). This is 39.7% of our total available procurement spend.

Our South African operations’ social and labour plans (required by mining legislation) will further boost our efforts to contribute positively to transformation and local development through local procurement.  

Projects and initiatives

We have initiated a project to investigate ways to support and encourage local and BEE procurement in a streamlined way. The project aims to put in place consistent local procurement strategies, processes and scoring mechanisms to ensure we achieve common preferential procurement goals for the benefit of our stakeholders at national, regional and local levels.

We have identified areas of excellence, such as the supplier development programme in Chile and local BBE procurement in South Africa, and our priority for 2010 is to continue build on these successes and promote local procurement.

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