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ANGLO AMERICAN PLC
JSE Code: AGL
ISIN Code: GB0004901517
(The "Company")
24 FEBRUARY 2003
ANGLO AMERICAN CONTINUES TO PROMOTE SME DEVELOPMENT AND PROCUREMENT TO BEE
COMPANIES
Anglo American announced today (24 February) that its divisions and operations
recorded R2,4 billion in procurement transactions with BEE small and medium
enterprises (SMEs) and related business development initiatives during the 2002
financial year. This represents an impressive 63% increase on the previous
year`s figure of R1,5 billion.
"For over a decade, Anglo American has been supportive of the small business
sector and Black Economic Empowerment. The group`s efforts are still bearing
fruit with the creation of sustainable wealth-generating and job-creating
enterprises," says Philip Baum, chief operating officer of Anglo American and
chairman of Zimele, Anglo American`s empowerment and business development
initiative.
Tongaat-Hulett of the Anglo Industries division is, for the fourth consecutive
year, top of the log with R533 million, a significant improvement on the R394
million spend in 2001. Hulett Aluminium`s BEE procurement spend increased from
R86 million in 2001 to R135 million in 2002 while Tongaat-Hulett Sugar, which
continues to seek further BEE opportunities, commenced with Phase Two of the
medium-scale sugar farmers project.
Anglo Platinum has made a remarkable improvement on its 2001 figure of R153
million increasing to R502 million in 2002, up by 227%. Potgietersrust Platinums
Limited (PPL) increased their BEE procurement spend by 81% from R84 million in
2001 to R152 million in 2002. Rustenburg Platinum Mines (RPM) increased
procurement spend by 65% from R55 million in 2001 to R91 million in 2002. Some
of the new exciting BEE developments at Anglo Platinum include a crushing
facility (Bushveld Crushers) at PPL and an underground rail track maintenance
venture (Lesedi Rail Tracks).
Anglo Coal reports procurement and business development expenditure of R333
million, a 33% increase on its 2001 figure of R250 million. During 2002, the
division concluded transactions with 167 BEE ventures such as suppliers of
conveyor belts and conveyor structures, occupational health and safety equipment
as well as service providers in the fields of construction, railway maintenance,
catering and engineering.
Mondi South Africa has spent R317 million on procurement and SME development
representing an 83% rise on last year`s spend. Key contributors within the
division are Mondi Paper (R81 million) and Mondi Forests (R115 million). Special
projects include the Khulanathi growers scheme and BlackGold Forest Products
(Pty) Ltd. The growers scheme, which continues to make a meaningful contribution
to Mondi`s BEE performance, contributed over R47 million. BlackGold Forest
Products converts waste timber into Forestry Stewardship Council (FSC)
accredited charcoal for local markets. The first set of kilns commenced
production in December 2002.
AngloGold, an independently managed subsidiary of Anglo American, reports a
spend in 2002 of R251 million in BEE business development and procurement
transactions. This represents an increase of 29% on 2001.
Zimele continues to advance business development throughout the Group,
facilitating new ventures at divisional and operational level and investing in
black empowerment concerns. Zimele is currently invested in 21 BEE enterprises,
which collectively employ more than 1000 people and generated a turnover of R173
million during 2002, a 19% improvement on the previous year`s turnover of R145
million. New investment opportunities are actively sought and Zimele continues
to review its exit strategies from existing investments which have matured
sufficiently.
Highveld Steel and Vanadium recorded for 2002 a procurement and business
development expenditure of R127 million. Their small business activities
increased by 60% over the previous year. Eleven new ventures were established
and 54 BEE businesses in Mpumalanga are rendering services to the corporation.
One of the most improved performances came from the Anglo Base Metals division
at R87 million. Namakwa Sands purchased R50 million worth of consumables and R17
million worth of services from BEE vendors. Its biggest success story is the
development of a contract labour supplier, NB Services, which now provides a
range of engineering services to Namakwa Sands. This business also services
other operations in the Lutzville area on the Western Cape coast.
ENDS
This press release was distributed by Anglo American Corporate Communication
Department
Media queries:
Marion Dixon Tel: (011) 638 3001
Email: madixon@angloamerican.co.za
Samantha Hunt
Tel: (011) 849 7699
Email: sam@frogcomm.co.za
Background:
Facilitating entry for emerging black businesses into South Africa`s economic
mainstream has been a constant of Anglo American Group policy for many years. By
the end of 2002, Anglo American has been associated with R16,5 billion of BEE
deals, comprising more than R10 billion in larger empowerment transactions and
some R6,5 billion on procurement from BEE SMEs.
The most recent BEE deal was concluded in August last year when Anglo Coal sold
its KwaZulu-Natal coal assets - an estimated 104 million saleable tons - to
black empowerment venture Leeuw Mining and Exploration.
www.angloamerican.co.uk
www.zimele.co.za
Date: 24/02/2003 10:44:42 AM Supplied by www.sharenet.co.za
Produced by the JSE SENS Department
