M AY 2 0 0 7
The building blocks for solid
Anglo American boosts business development and procurement to local
SME suppliers with R12,3 billion spend
Through focused procurement efforts and
supply chain management, Anglo American
is making an indelible mark when it comes to
the purchasing of goods and outsourcing of
services with black-owned small and medium-
Anglo American’s South African divisions, operations and
subsidiaries collectively injected a record R12,3 billion
into the country’s economy during 2006, representing
a 37% increase on the previous year’s BEE procurement
With broad-based black economic empowerment on the
agenda, more companies are realising the benefits of
procuring from local community-based suppliers.
“Anglo American is certainly leading the way,” says Nick
van Rensburg, managing director of Anglo Zimele. “Our
BEE procurement spend has maintained an impressive
growth curve with the divisions and operations giving
supply chain transformation the attention it deserves.”
While the numbers are impressive, it is the socio-economic
impact of transformation that presents us with numerous
success stories. Procuring goods and services from local
suppliers is an ideal way for companies to give something
back to the communities in which they operate, and to
stimulate those same economies in the process.
Clocking up a total BEE procurement spend of R4,8 billion Top, from left to right: Queen Mother Semane Molotlegi, Reverend
in 2006, Anglo Platinum sits proudly at the top of the list. Kgomotso Rammutla, Abner Monau (representative from the Depart-
Considering the division’s stellar financial performance last ment of Education) and Kagiso Kgaboesele (educator at Mafenya
year, one could deduce that socio-economic development Middle School) watch as Glenn Harris (BRPM mine manager) cuts
the ribbon during the hand-over of the new classrooms at Mafenya
(SED) pays its own dividends.
MAY 2 0 0 7
Anglo Platinum has an active and wide-ranging SED “And the positive and proactive response from the mining
programme that specifically targets emerging small businesses sector through the implementation of BEE will further unlock
owned by historically disadvantaged South Africans (HDSAs) the sector’s potential, promote its global competitiveness and
in areas where it operates. Often, such interventions are enhance its world-class status,” he adds.
made in association with local stakeholders and outside
development and training agencies. Johannesburg Corporate Centre
A good example of community goodwill working hand in hand A visible and
with empowerment is that of entrepreneur Bernard Moatshe, of prominent
Leruo Steelworks in South Africa’s North-West province, who example of
was capacitated and linked to the Anglo Platinum supply chain empowerment
by the Bafokeng-Rasimone Platinum Mine (BRPM). spend in
action is Anglo
He was contracted by Anglo Platinum to build three
classrooms at Mafenya Middle School in Rustenburg, which
Africa’s new multi-
had been beset by severe overcrowding due to the escalating
storey parkade at
economic growth of the town. The new classrooms at this
42 Marshall Street
township school were built in partnership with the province’s
in Jo’burg’s CBD.
education department, and it is hoped that they will contribute
to a more conducive environment for teaching and learning. The construction
of this important
Anglo Coal addition to the
cost R49 million
and largely used
the services of
manager of Anglo
Coal – Zimele,
says that increasing The 42 Marshall Parkade in the Jo’burg City
purchases from the The Corporate Centre constructed by Fikile-Stocks JV6
local supply chain Centre’s spend
should be a matter with BEE suppliers amounted to R160 million in 2006. This
of conscience for allocation benefited more than 100 historically disadvantaged
companies and ‘the companies, largely providing consulting, travel, office
right thing to do’. accommodation and ancillary services.
However, he points
out that there are
intangible benefits In 2006, Vergelegen wine estate spent R6,4 million on
to be gleaned from procuring casual/seasonal labour, catering and restaurant
this practice – such supplies, security costs and the removal of alien vegetation
as stimulating the from 33 black-owned and managed vendors.
Hi-Quip Hydraulics is just one of the local economy and
Financial manager Pieter de Necker explains that one
many Mpumalanga-based BEE companies developing the
of Vergelegen’s main initiatives is an ongoing project to
services the needs of Anglo Coal community, which
remove alien vegetation on the estate. “This project led
could in turn lead to
to the establishment of a business owned by a historically
the tangible benefit of reducing a company’s downtime, as
disadvantaged woman, Zille Roos, who for many years had
suppliers are right on its doorstep.
cut black wattle wood on the farm to sell as firewood for her
Anglo Coal spent R1,7 billion on procuring services from own account.
418 BEE suppliers in 2006. The needs of the supply chain
“During the initial set-up of her business – Roos Braaiwood
were such that this money was spent on goods and services such
– Vergelegen assisted Zille with bridging finance and cash
as petroleum, explosives, nuts and bolts, hydraulic pipes and
flow management. She currently has 40 people in her employ
fittings, electrical components, cleaning services and labour hire.
and works full-time on the Veld Management Plan, which is
now in year four of 10.”
Kumba Iron Ore
In addition, most of the construction work on the farm’s
Kumba Resources (which in November 2006 was unbundled
infrastructural upgrade was undertaken by a BEE company,
into black-owned mining company Exxaro and Kumba Iron
BL Williams Construction, and includes the building of a head
Ore) reported an outlay of R1,308 million on procuring
office, public toilets, perimeter wall and fences, with the most
services from some 308 black-empowered vendors last year.
recent being a new entrance gate.
According to Kumba Iron Ore’s Tim Lotz, “Engaging with
Pieter says that empowering local suppliers is a visible
local suppliers contributes towards sustained economic
demonstration of Anglo American’s approach to community
growth, development and social transformation.
development and engagement, and recommends that other
business units undertake similar grassroots initiatives.
Mondi Zimele is born
Continued from page 2
Mondi Zimele, a 100% funded and owned subsidiary of
Mondi South Africa Limited which started operating in
January 2007, is aimed at accelerating and facilitating
sustainable black economic empowerment in the value
chains of all companies in the Mondi South Africa
Group, with particular emphasis on small and medium-
sized business sector.
The concept, which is modelled on Anglo Zimele’s approach and
successes over the last 17 years, was approved by Mondi South
Africa in July 2006. Mondi Zimele will identify opportunities to
develop black-owned businesses in Mondi’s value chain, with the
initial focus in the forestry sector to assist in ensuring successful land
A view of Black Mountain’s operation in the Northern Cape. reform on Mondi’s forestry land.
Black Mountain procures goods and services from two of
Anglo Zimele’s more recent investments, Steinweld “Mondi Zimele will provide value through making available
Engineering and Barit Mining Supplies equity, interest-bearing funding, strategy development advice,
marketing development and expansion advice,” says Sipho
Black Mountain Phakathi, Mondi SA’s business development manager. “We
will also offer business development and planning support,
During 2006, Black Mountain spent R141,6 million with governance, legal, administration and financial skills, as well as
112 BEE suppliers. procurement benefits.”
“BEE procurement initiatives give companies the Investments will consist of a combination of equity and loans,
opportunity to put their money where their mouths with Mondi Zimele acquiring a minimum of 20% and a maximum
are,” says Gordon Fortuin, procurement manager. of 49% equity stake in various investee entities. Interest on
“Your local supply base is the one that will stand by loans is charged at competitive rates. Typically Mondi Zimele’s
you through thick and thin; they understand your contribution in individual investments will be in the range of
conditions and specific needs.” R100,000 and R5 million.
An example of this in action was when Anglo Zimele The Board of Mondi Zimele has established an Investment
and Geoffrey van Rooyen were approached to Committee to consider and approve investments. Bob Hunt, who
buy 10% equity in Steinweld Engineering and Barit has held various senior positions in Mondi, has been appointed
Mining Supplies, family businesses owned by Jan CEO, and his team comprises six professional support staff.
and Eugene Koegelenberg.
Congratulating Mondi South Africa on this move, chairman of Anglo
Mondi South Africa Zimele Godfrey Gomwe said, “Mondi has always been successful
with its local procurement and supply chain initiatives. Mondi
Through its paper and packaging division, last year Zimele is an extension of its success and a means of formalising its
Mondi SA spent R1,2 billion on procuring services commitment to the South African SME sector.”
from 1,067 BEE suppliers – R886 million by Mondi
Business Paper SA and R343 million by Mondi
Mondi Zimele’s Sipho Phakathi says that the
goods and services provided included packaging,
engineering, shipping agents, coal suppliers, labour
brokers, transport services, chemical suppliers, forestry
contractors and cleaning services.
For others wanting to increase their purchase volume
from the local supply chain, Sipho advises, “Target
certain goods and services for local and/or BEE
suppliers only. Define ‘local’ in that area.”
“Work with local business chambers and/or
associations to determine available capacity and
shortcomings, and facilitate partnerships with
established larger suppliers. For strategic areas,
invest – in partnership – in an incubator system,” The Mondi Zimele team comprises, from left, Martin Bothma (business
adds Phakathi. development manager), Wendy Pieterse (manager: legal affairs),
Bob Hunt (CEO), Monica Armuga (companies accountant), Nosisa
Nzuza (legal assistant), Heather Bird (administrator) and Sipho
Phakathi (business development manager)
Entrepreneurs enlist to fight the talent wars
A talent management workshop was held in late Commenting on the day, Sipho Mavolontiya of Tyre
January with the Anglo Zimele entrepreneurs. Corporation said, “I enjoyed the talent workshop, and found
Facilitated by futurist strategy consultancy, that it improved my interpersonal skills. It also exposed some
TomorrowToday, business owners and leaders of the of the weaknesses I have as an individual. Indeed it was a
Anglo Zimele investee companies discussed how to worthwhile exercise.”
win the ‘talent wars’ within their industries. Russell van der Haer of Damelin Emalahleni found that the
workshop opened his eyes to the dynamics of the ‘generation
Globally businesses are gap’. “At Damelin we only hire full-time employees if they
feeling the pain associated have studied with us on a full-time basis. Hence, the only staff
with attracting, retaining born before 1980 are ourselves. We are encountering fresh
and developing talent and approaches to dealing with change in the workplace from
skills in very competitive younger staff members.”
“Retaining talent is fast
becoming essential, not
only to the growth of our
businesses, but indeed to
their security and survival,”
said Nick van Rensburg at
the opening session.
A broad definition of talent
refers to the employees
who are the super-performers in the business, the people who
drive productivity and service levels.
The DNA of talent has changed of late, and the strategies
that once worked are now no longer effective. In this context,
the Anglo Zimele businesses were led through a process that
allowed them to get into the minds of their talent, explore
talent retention mechanisms and develop an action plan as
a step towards developing a comprehensive strategy for talent
The entrepreneurs gained valulable insight on how to attract,
retain, motivate and get the best out of their talented staff.
The objective of the workshop was to create a clearer
understanding of the concept of talent management and a clear
picture of what an attractive workplace culture, environment
and structure looks like, especially to younger talent.
Letsosa Matona of Kram Engineering and Sipho Mavolontiya
of Tyre Corporation listen attentively to the input of their fellow
Number crunching Legally
accountant, and is Elize Isenschmid, Anglo Zimele’s new legal
thrilled about the advisor, feels challenged and inspired to be able
vast learning and to play a part in South Africa’s growing small
self-improvement and medium enterprise (SME) development
her new position She joined the team on December 1 2006, and provides
presents. legal guidance on Anglo Zimele and Anglo Khula Mining
She is responsible Fund transactions.
for all accounting Elize obtained her BA Law degree at Rand Afrikaans
transactions University, and later graduated from the University of
conducted by Anglo South Africa with a LLB Honours Degree (cum laude).
Zimele and the Anglo
Khula Mining Fund, and will assist in public relations activities She was awarded the Senate Medal for best academic
as well as the day-to-day running of the department. achievement for the LLB degree as well as the Johannes
Voet Bar Medal, a special award given by the Advocates
Larisha was formerly employed in the banking sector and
Association of the Transvaal for outstanding performance
graduated from Unisa with a BCOMPT honours degree.
in post graduate legal studies.
“Moving into the corporate world has been a dynamic
“I have always been fascinated by the history of
experience, and I am excited about the diversity that exists
civilisation, starting with Aristotle and Socrates in Greece,
within Anglo Zimele.
and moving on to the mighty Roman Empire that brought
“Since being here I have already gained some valuable forth brilliant legal minds such as Justinianus and Cicero.
insight into various facets of the business world, and am These great figures were the originators of law as we
excited about learning from the vast experience of my know it today. “
colleagues,” she says.
Elize went on to complete her articles at Sandton-based
Larisha is particularly inspired by Anglo Zimele’s role in small Deneys Reitz Attorneys, and was then appointed legal
and medium enterprise development.
advisor and company secretary at JSE-listed company,
“It is remarkable to watch the growth and self-improvement of Zeltis Holdings Ltd.
entrepreneurs whose businesses have been assisted in various
ways by Anglo Zimele.”
When Larisha is not at work, she spends a great deal of time development
studying and is currently in pursuit of her qualifications as a started at her
chartered accountant. previous position
However, when she does get a break, she enjoys reading, at Khula Enterprise
working out in the gym and exploring different cultures with Finance Limited, a
her husband, Kuberan, on their annual travels abroad. partner with Anglo
Zimele in the Anglo
Khula Mining Fund.
And what is it she
Do you need advice on enjoys most about
her job today?
preparing a well-structured “Putting an
business plan? agreement together
that not only
Visit the Anglo Zimele website at secures against legal risks and possible future litigation,
www.anglozimele.co.za and click but ensures that all parties derive benefit in equal measure
on the Anglo Zimele HotSpot from a business initiative.”
button. Here you will find the typical To quote a popular Latin phrase, Elize says, ‘clara pacta,
structure of a business plan. boni amici’, meaning ‘clear agreements, good friends’!
Heaping the praise
Anglo Zimele acknowledged the efforts and
performance of its small and medium enterprises by
hosting a luncheon in January.
The event sought to round off a highly successful 2006
and celebrate its portfolio of investee companies which
represented strength in diversity, and a wide array of skills,
products and service offerings.
Welcoming the guests, Anglo Zimele chairman Godfrey Gomwe
noted, “We are here to recognise excellence and to honour
those individuals and companies who through dedication,
innovation and above all, passion, continue to drive the level of Representing 2006’s best performers are Kram Engineering’s
Letsosa Matona, Calulo Drilling’s Kit Manley, Bob Moloi of
growth in the small and medium enterprise sector.”
Itireleng Ore Reclamation and Tyre Corporation’s Sipho Mavolontiya
The investee companies are important links in the mining supply
chain and collectively Anglo Zimele and the Anglo Khula
Winning in the Small Business category (with turnover less
Mining Fund’s SMEs turned over some R1 billion during 2006.
than R5 million) was Itireleng Ore Reclamation, headed up by
This was up from the previous year’s figure of R777 million.
Nick van Rensburg, managing director of Anglo Zimele,
Taking the prize in the Medium Business category – for SMEs
highlighted some of the challenges facing business in today’s
turning over between R5 million and R30 million – was Kram
world, “We live and work in an ever changing environment.
In nature when a species fails to adapt to its environment, it
dies. Similarly, if business fails to adapt to the environment, it In the Large Business category, which caters for companies
will suffer.” with a turnover more than R30 million, the winner was Tyre
“The biggest single threat and balance shifter in our environment
today is that of HIV and AIDS. It is vital that we adopt and For an outstanding safety record and 2,320,216 lost-time injury-
maintain mindset strategies to reduce the rate of infection as free man hours between March 2005 and November 2006, the
well as to mentor and care for those already infected.” 2006 Anglo Zimele Safety Award went to Calulo Drilling.
In 2005, Anglo Zimele took a decision to acknowledge those
investee companies that have excelled in a particular year.
2006 was no exception. Given that Anglo Zimele is invested
in a diverse range of businesses of different sizes, it was
necessary to divide the awards into three categories.
Some of the entrepreneurs who attended the luncheon included
Erica Mokone (far left) from KHP Hydraulics and Pneumatics,
Jonathan Mthembu (left) from Maccauvlei Learning Academy,
and in the photograph above, Jan Breedt of Langa Lethu with
Gwen Mahuma, DSI-Mandirk Strata Support; Willy Leeuw,
Leeuw Mining and Exploration; and Aubrey Leeuw (Langa Lethu)
Tel: +27 11 638 4172 firstname.lastname@example.org
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MAY 2 0 0 7