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Kumba has set ambitious preferential procurement targets that are in excess of the requirements of the Mining Charter.
Kumba is working together with its suppliers to meet these targets and transform the economy.
Kumba’s enterprise development activities support a variety of businesses in key sectors of its communities.
Of the R13.7 billion Kumba spent during 2010, R9.4 billion was discretionary of which R3.6 billion or 39.10% was spent with BEE suppliers. This is an increase from the previous two years both in absolute and proportional terms. This increase is in line with our policy which recognises local procurement as of strategic importance to the company. It plays a key role in securing and maintaining the right to mine, developing thriving communities, creating efficiencies in the supply chain and ensuring reliable access to supplies.
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Total payments |
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Total discretionary payments |
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BEE payments |
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% BEE of discretionary |
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2008 |
9 011 364 572 |
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5 980 401 982 |
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2 154 532 983 |
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36.03 |
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2009 |
12 535 484 593 |
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8 577 336 577 |
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3 160 601 934 |
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36.85 |
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2010 |
13 765 397 014 |
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9 401 107 477 |
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3 675 679 142 |
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39.10 |
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In order to strengthen its preferential procurement drive and exceed its mandatory obligations, Kumba has a number of initiatives in operation. These include the implementation of a local supplier development strategy and a concerted effort to verify the BEE status of existing suppliers. By 2014, Kumba aims to procure 40% of its capital requirements, 50% for consumables and 70% of its services from BEE suppliers. Furthermore, Kumba is establishing a preferential procurement transformation committee which will monitor progress in terms of meeting the targets. Kumba will be advertising some of its tenders on the DMR website. These will be ringfenced and only open to HDSA suppliers.
Coordinated by Kumba’s Social and Community Development Department, in collaboration with Anglo American Zimele (the small business development arm of Anglo American www. anglozimele.co.za), enterprise development is an important component of creating viable local economies, increasing employment, and helping people to achieve their goals by providing funding for the establishment of small and medium businesses, advice on business planning and ongoing mentoring.
Since the beginning of 2008, 37 new businesses were established which created 360 permanent jobs, and generated R29 million in turnover during 2010. Through Kumba’s mentorship programme, 340 small and medium enterprises were assisted and advised.
Much of Kumba’s enterprise development activities are driven out of the small business hub at Kathu but increasing activity is expected from Postmasburg, where Kolomela Mine is located, once the mine ramps up to full production.
Kumba’s enterprise development programme fits well with its vision for the post-mining landscape. It anticipates that the efforts expended in enabling the creation of these businesses will last beyond the life of its mines.
Some of the new businesses established include the following:
- Butterland Bakery in Thabazimbi.
- Hydroponics farming supported by Kolomela – the project received a recognition award in the district for best agricultural project in its category.
- Commercial Poultry Farming
- Upgrade at Boichoko Bakery
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37 No. of businesses established 2008-10 |
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11 no. of businesses est. 2010 |
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316 Jobs created |
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R10.7 million loans provided 2008-09 |
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R4.8 million loans provided in 2010 |
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R54 million small business turnover 2008-09 |
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R28.6 million small business turnover in 2010 |
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R5.8 million loans repaid |
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