Amplats benefits from increased host-community procurement
Following the award of a ground-breaking R1.2-billion contract to ten community-owned trucking companies in 2021, JSE-listed Anglo American Platinum (Amplats) says it remains committed to growing procurement from its communities.
The major transport contract involves moving concentrate from mines to processing plants, meaning that 100% of concentrate produced by Amplats’ Limpopo-based mines will be transported to its processing operations by community-owned companies.
Previously, host community suppliers only transported about 17% of concentrate volumes and were largely subcontracted to larger logistics companies.
The platinum-group metals miner increased its procurement from host and doorstep communities by more than 500% between 2016 and 2021, to a current level of R5.3-billion.
While the trucking companies are contracted directly to Amplats, their schedules, administration and technical support are being managed by JSE-listed Imperial Logistics.
This contract will allow the transporters to obtain financing to buy their own vehicles and, ultimately, provide services to more customers.
“Amplats has always seen mining as a catalyst for broad-based development, and community procurement goes far beyond philanthropy or corporate social responsibility to ensure that our host communities become direct beneficiaries of [our] mining operations,” remarks CEO Natascha Viljoen.
She adds that this agreement demonstrates Amplats’ commitment to building thriving communities and supporting the creation of off-mine jobs through inclusive procurement.
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