Creating Value with the Future in Mind - Anglo American South Africa

creating value for society creating value for host countries
Local
procurement
is a particular
priority in our
South African
operations,
forming an
important
part of our
contribution to
the country’s
drive to
promote black
economic
empowerment.
Suppliers
Share of economic benefits: $ million
Africa 7,279
Europe 334
North America –
South America 4,829
Asia/Australia 2,419
Total 14,861
Spend with suppliers
in South Africa
$ million
We also encourage governments to
recognise and balance the impact of
the commodity price cycle with the
need to make long-term, substantial
capital investments in determining
their fiscal policy.
Payments to suppliers
In 2012 we spent nearly $14.9 billion
with suppliers, which accounted for
about half our total economic value
distribution. Suppliers are thus a
significant opportunity to promote a
responsible and sustainable value
chain which, in turn, has a beneficial
impact on broader society.
We are committed to procuring from
within the countries we operate and
from our host communities; our
procurement practices support this.
(See pages 31 and 33 for more
information on localised spend.) In
addition, China is a key customer and
strategic business partner and we have
a sourcing strategy to build long-term,
valuable relationships with Chinese
suppliers. This includes identifying
Chinese suppliers from which local
businesses can source and establish
relationships with directly.
black economic
empowerment procurement
Local procurement is a particular
priority in our South African
operations, forming an important part
of our contribution to the country’s
drive to promote black economic
empowerment (BEE). In line with the
South African Mining Charter, by 2014
companies are required to source a
percentage of capital goods (40%),
consumables (50%) and services
(70%) from companies owned
by ‘historically disadvantaged
South Africans’ (HDSAs). In 2012,
Anglo American-managed businesses
spent $3.1billion (2011: $3.0 billion)
with HDSA businesses (excluding
goods and services procured from the
public sector and public enterprises).
With the exception of Thermal Coal,
which missed its services target by
1%, each of our South African
business units met or exceeded
the procurement requirements of
the Mining Charter for 2012. Good
progress was made in the areas
of capital goods and consumables,
although the target for services
remains a challenge that is being
addressed. Thermal Coal, Kumba and
Platinum are focusing on suppliers that
provide services, and specific actions
and timelines have been set to guide us
towards meeting the services targets.
We have been actively involved in
commenting on the Broad-Based
Black Economic Empowerment
(BBBEE) Amendment Bill and also
provided detailed submissions to the
South African Department of Trade
and Industry on the draft revised set of
BBBEE Codes of Good Practice. The
revised codes, among other provisions,
provide for enterprise and supplier
development, which has been a
longstanding focus for us.
Spend with HDSA businesses 3,138
Spend with non-HDSA/public
businesses 2,714
Spend with the public sector
and public enterprises 1,241
30 Anglo American plc Sustainable Development Report 2012