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

Spend with suppliers based in
host communities 2011 vs 2012
%
2011
9
Building strong towns
in mining regions
2012
2011
11
11
2012
19
2011
*
2012 6
2011
2012
8
2011
7
2012
2011 5
11
14
Creating value for society
2012
5
2011
12
2012
15
2011
11
2012
13
2011
*
2012 19
0 5 10
15 20
Anglo American total
Kumba Iron Ore
Iron Ore Brazil
Metallurgical Coal
Thermal Coal
Copper
Nickel
Platinum
Phosphates and Niobium
* Data not reported in 2011
Spend with suppliers based in
host communities
$ million
Kumba Iron Ore 349
Iron Ore Brazil 63
Metallurgical Coal 289
Thermal Coal 200
Copper 122
Nickel 84
Platinum 338
Phosphates and Niobium 91
A lack of municipal capacity in
our host communities can have
a negative effect on residents
and a detrimental impact on
Anglo American’s ability to operate.
Our new partnership approach
to capacity building in southern
Africa and Brazil aims to offer an
effective and sustainable solution
to this challenge.
In South Africa, we have teamed
up with the Development Bank of
South Africa (DBSA) to improve
capacity in host mining areas and
create the country’s first example
of a public-private partnership in
this field.
“Our aim is to enable municipalities
to supply basic services like water
and electricity effectively, rather than
supplying it ourselves,” says Jon
Samuel, head of social performance.
Meanwhile, Juliana Rehfeld,
sustainable development manager
for our Nickel business in Brazil,
recognised that limited municipal
capacity was likely to be an
increasing challenge, especially as
mining revenues started to flow into
the town from central government.
“We wanted to find a way to prepare
both the local government and local
citizens to live in a society that would
grow,” says Juliana. Anglo American
has been collaborating with Agenda
Pública on this project since 2008.
In both Brazil and South Africa, the
projects follow two broad strands:
empowerment of communities to
enable them to understand their
rights and hold the government to
account; and training and skills
development for public officials
to enable them to fulfil their roles
and respond to public demand.
Although we provide funding in
both cases, our knowledge of the
local area, our input into project
planning and evaluation, and our
local relationships have all proved
important elements of the work.
Signs of progress are already
apparent. In Barro Alto, the project
has strengthened the capacity of the
independent city council through the
training of councillors and providing
them with the skills to carry out their
jobs effectively. In South Africa –
where work is at an earlier stage
than in Brazil – the DBSA has
focused on enhancing revenue
collection capacity, which will
provide the opportunity to improve
services in other areas.
Image
Liomar Vidal, an Anglo American community
relations officer, at the Professora Maria Siqueira
Pinto school, which Anglo American helped to
build in Barro Alto.
Anglo American plc Sustainable Development Report 2012 31