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Since its launch in 2017, Kumba Iron Ore’s Inclusive Procurement (IP) programme has made a wide-ranging contribution to local economic development.

Through empowering local suppliers, fostering sustainable community development and creating long-term economic opportunities, the programme aligns with Anglo American’s vision of mining as a force for positive social impact.

2017–2020: Laying the foundations

When the programme was introduced in 2017, it was guided by Anglo American’s commitment to transforming how mining can contribute to society.

Kumba allocated $27 million that year to procurement with host-community businesses – those suppliers who have their main place of business in the direct vicinity of the operation – marking a meaningful step towards creating shared value through local partnerships.

This early commitment continued to grow as Kumba integrated local suppliers into the supply chain, particularly in sectors such as transport, facilities management and construction.

Through fostering these relationships, Kumba’s operations became both stronger and more inclusive, creating opportunities in traditionally under-represented communities.

Since those early days, the IP programme has expanded further, contributing to job creation and skills development, helping to build local capacity and enabling these businesses to compete for contracts beyond those they had with Kumba.

When the Covid-19 pandemic struck in 2020, Kumba quickly adapted the programme, offering virtual training and accelerating payment processes to support local suppliers. The company also sourced essential personal protective equipment (PPE), medical equipment and supplies for its nutrition programme from host-community companies wherever possible.

These early years built a resilient foundation for the programme and demonstrated the role of local procurement in sustaining community well-being during times of crisis.

 Inclusive procurement has proven to be a cornerstone in our efforts to support local economies and advance our Purpose of reimagining mining to improve people’s lives. We are not only sourcing vital goods and services locally, but also building skills, supporting jobs and driving long-term economic empowerment. The programme is more than procurement; it is a pathway for communities to share in the benefits of mining, ensuring that the positive impacts of our operations extend beyond the mine gate and into the lives of those around us.”

Charles O'Donnell Group head of supply chain

2021–2024: Scaling impact and shaping the future 

By 2021, the IP programme had evolved into a catalyst for change within Kumba’s host communities, with the first community load and haul contract being awarded.

This commitment strengthened relationships with community leaders, business owners and regulators, reinforcing Kumba’s role as a responsible partner in economic development.

By 2022, following the success of the programme at Kumba, the IP programme was expanded across all of Anglo American’s global operations, demonstrating that sustainable mining can create lasting value in communities across the company’s operating footprint.

By the end of 2024, the programme had delivered a cumulative $1,497 million in expenditure with host community companies.

This spend is distributed across several categories – from support categories such as facilities management and security, right through to core categories such as contract mining, construction, and load and haul.

Today, Kumba has over 300 host community suppliers across 89 of its 106 procurement categories.

The programme now serves as a Group-wide model for inclusive procurement, supporting Anglo American‘s responsible mining practices in driving economic upliftment at the local level.

In 2024, Kumba continued its commitment to creating opportunities that extend beyond the mine, supporting the formation of a Multi-Business Forum Committee to enhance the voice of host-community businesses and identify new opportunities for local companies within the supply chain.

A commitment to communities, a licence to thrive

The IP programme has proved instrumental in building relationships with stakeholders critical to our long-term success.

In markets where economic opportunity for local communities is a key consideration for granting formal licences and maintaining social licences, the programme continues to demonstrate the tangible benefits that mining can bring.

By helping local businesses flourish and supporting local jobs, Anglo American is earning a reputation as a trusted and reliable partner in economic development, ensuring that our operations contribute to sustainable growth far beyond the life of the mine.

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