Mining is big business, especially in South Africa. As one of the leading mining companies in the country, Anglo American significantly contributes to the national economy. Operating across four commodities, namely iron ore, diamonds, thermal coal and platinum, we spend more than R58 billion a year in South Africa procuring goods and services through our supply chain.
Anna-Maria de Jesus, supply chain strategy and performance lead at Anglo American says, “Approximately half of Anglo American’s expenditure was on procurement in 2012. Through our supply chain we have the opportunity to make a huge impact on the economic and social development in the communities in which we operate.”
Anna-Maria believes that local procurement is ultimately about being a development partner. “At Anglo American, we take a longer term view and see how we can uplift communities,” says de Jesus.
But Anna-Maria is adamant that local procurement is about more than simply creating jobs, it is about offering local entrepreneurs the support they need to grow into larger businesses – using the mines in the area as a springboard.
“This is about going beyond the financial, offering smaller suppliers mentoring and coaching in all facets of business. We are looking at partnering with our enterprise development arm, Zimele, to help facilitate this kind of support,” says Anna-Maria.
All of Anglo American’s business units are fully committed to the development of the communities around which they operate. One initiative at Thermal Coal identified 28 high-potential local suppliers with the intention of Thermal Coal to turn these small enterprises into medium to large ones. Whether it’s Anglo American Platinum, Kumba Iron Ore, De Beers or Thermal Coal, there is always a complete commitment to local suppliers.
There is a common misconception that mining moves into an area, mines the resources, and leaves without a thought to the broader community. Anglo American has disproven this myth through its procurement activities as it aims to uplift local entrepreneurs and support their communities in becoming sustainable and can continue to grow and thrive beyond the mine.