Anglo Zimele - Anglo American
Transcription
Anglo Zimele - Anglo American
Anglo Zimele Showcase of companies ANGLO AMERICAN Contents Foreword by Philip Baum Message from Godfrey Gomwe About Anglo Zimele 2 3 4 Amitech Thushanang Asambeni Mining Bambanani Health and Safety Barcandyle Engineering Coalfields Panelbeaters and Spraypainters Damelin Emalahleni DSI-Mandirk Strata Support Emalahleni Oil Collections Galison Drilling Gillmich Go-Awaste Management Services HR Intellect Ikosis Project Itireleng Ore Reclamation Kram Engineering Langa Lethu Risk Management Leeuw Mining and Exploration Lesedi Tracks Maccauvlei Training and Conference Centre Mapungubwe Engineering Multiclens Naledi Computer Systems Nomakanjani Logistics NRB Piping Systems PH Projects Probe Witbank Semane Consulting Engineers ScanMin Africa Sinoville Fencing Specialised Rubber and Industrial Thabo Piping Systems Transcend Empowerment Advisors Tyre Corporation Holdings Urethane Moulded Products Worldwide Coal Cover: David Monyamane, managing director of Bushveld Crushers, a past Anglo Zimele investee company operating in the Limpopo Province 6 6 7 7 8 8 9 9 10 10 11 11 12 12 13 13 14 14 15 15 16 16 17 17 18 18 19 19 20 20 21 21 22 22 23 Foreword by Philip Baum Foreword by Philip Baum “ Our commitment to black economic empowerment and entrepreneurial development has for many years formed a strategic part of our business rationale Philip Baum, Acting CEO, Anglo American South Africa It is tremendously exciting for Anglo American and its 18-year-old enterprise development and empowerment initiative Anglo Zimele to be participating at the 2006 Electra Mining Show. Anglo American is taking this opportunity to showcase its current and past investment companies as well as a number of the enterprises with which it has an association or partnership. We are proud to have on board those companies which are ‘old friends’ along with new ones in the Anglo Zimele fold. Much of my own career at Anglo American has seen the facilitation of entry for emerging black business into South Africa’s economic mainstream; starting back in 1989 with the formation of our enterprise development unit now known as Anglo Zimele. This has entailed a dual approach: on the one hand we have put together the ” big deals that have led to black owned and managed companies of substance such as Johnnic, African Rainbow Minerals, Mvelaphanda, Eyesizwe and Exxaro. At the other end of the scale, we have Anglo Zimele creating SME opportunities in the BEE arena. Over the past 18 years, the Anglo American Group has been responsible for BEE deals worth around R35 billion. Procurement is an area in which the corporate centre and all operations have experienced considerable success. Since 1993, total Anglo American Group procurement from BEE companies has reached some R26 billion. For 2005 alone, the figure was R8.2 billion, an increase of 51% over the previous year. Today, almost 40% of the Group’s total BEE spend is with SME companies. Our commitment to black economic empowerment and entrepreneurial development has, for many years, formed a strategic part of our business rationale. It not only allows us to identify and achieve significant cost efficiencies in our supply chain, but sees us contributing to one of South Africa’s most thriving socio-economic sectors. It is only in this way that the challenges of black economic empowerment can be met and our procurement and business development initiatives bear fruit. Acting CEO, Anglo American South Africa Message from Godfrey Gomwe Message from Godfrey Gomwe “ ” Partnering with people who possess a passion for business Godfrey Gomwe, COO, Anglo American South Africa and Chairman, Anglo Zimele Anglo Zimele is extremely proud to once again be showcasing our investee companies and partners. Following the success of the Presidential Exhibition in July 2005, the Electra Mining Show presents an ideal opportunity to boost market awareness for our small and medium enterprises (SMEs), to meet new and prospective black empowerment partners, and for companies wishing to transform, to meet us. blueprint for many similar initiatives. It has also served as a guideline for the thought leaders that have developed the BEE codes of best practice. Various external organisations have visited our businesses and drawn from our experiences and expertise to implement their own BEE SME processes. Our experiences, successes and even failures have shown us that within South Africa entrepreneurs have immense potential. As Anglo American, we like to continuously tap into this potential, recognising the many opportunities for South African men and women, young and old, to share knowledge, experience and resources. There has been strong year-onyear growth in this area which could not have been achieved without the commitment of Anglo American’s business units. Anglo Zimele is currently invested in over 30 black empowered SMEs which collectively employ in excess of 2,200 people. Since 1989 we have been invested in some 150 enterprises for which we have provided financial support through equity and loans coupled with hands-on guidance and technical support. Anglo American was a pioneer in the early days, long before BEE and transformation were legislated, and created a Anglo American and Anglo Zimele have learned that, for enterprise development to work, a tactical combination of secure funding structures and business partner mentoring is necessary. We firmly believe that Anglo Zimele has made an impact on the South African business landscape, and thus continue to explore ways of growing the SME sector and partnering with people who possess a passion for business. COO, Anglo American South Africa and Chairman, Anglo Zimele ABOUT ANGLO ZIMELE Anglo Zimele is the enterprise development and empowerment initiative of Anglo American. For 18 years it has aspired to create sustainable, commercially viable businesses that are managed by people with passion and entrepreneurial spirit. Its focus lies in the investment in black empowered SMEs which demonstrate a commercially viable and sustainable business or business plan. Each investment is funded on a deal-by-deal basis. Anglo Zimele’s SME business development and empowerment model, applied by Anglo American, its divisions and operations to facilitate the development of the SME sector, comprises three primary investment pillars: procurement, business development and the Anglo Khula Mining Fund. The Anglo American Group has recorded a total BEE investment of R26 billion (in 2005 real terms) in BEE procurement from 1993 to December 2005. Including SME development, this amounts to R28 billion. BEE procurement jumped 51% from R5.4 billion in 2004 to R8.2 billion in 2005. SME development rose 121% from R352 million in 2004 to R777 million in 2005. PROCUREMENT Enterprise development in the supply chain The Anglo Zimele team interacts closely with Anglo American’s divisional procurement departments and assists with identifying BEE suppliers who can participate within their supply chains. Anglo Zimele also collates the procurement figures of each division and operation and produces a consolidated BEE procurement position each quarter. BUSINESS DEVELOPMENT Building businesses, creating employment and sustainable wealth The business development aspect of Anglo Zimele involves an investment fund which provides loan and equity finance to support start-up or expanding businesses. Anglo Zimele actively pursues investment opportunities at the operating divisions. All potential opportunities must exhibit commercial viability and growth prospects, and must seek to actively involve an entrepreneur in the daily operations of the business. Once a credible investment opportunity has been identified, the Anglo Zimele team seeks out a suitable black empowerment partner, conducts a due diligence exercise and assists in the compilation of a business plan. The business plan is submitted to the Anglo Zimele board for approval. Upon approval, Anglo Zimele acquires a minority equity stake in the business and an Anglo Zimele representative is appointed to the new company’s board of directors. At times it is necessary to dilute existing shareholdings in emerging businesses and to introduce a technical and/or strategic business partner for capacity building, growth and expansion. A hands-on approach, through strategic guidance and skills transfer, is fundamental to the initial growth and success of these businesses. Inputs include advice on business principles, corporate governance and strategy. At the outset this is significant, but with time the dependency lessens, thereby realising Anglo Zimele’s underlying philosophy of independence through enterprise. A clear exit strategy is also defined in the shareholding agreement. “ Anglo Zimele is currently invested in over 30 businesses employing over 2,200 people ” Peter Seepi, managing director of Go-Awaste Management Services ANGLO KHULA MINING FUND INVESTING WHERE IT COUNTS Shifting the mining landscape of South Africa Adding value to its investments The Anglo Khula Mining Fund, launched in March 2003, seeks to facilitate the entry of junior, but commercially viable, mining ventures into the mainstream mining sector. Anglo Zimele’s role in any merger or acquisition is to provide a suite of offerings and services, from financial assistance and mentoring to business plans and training programmes. It ensures that the highest standards of integrity regarding the principles of BEE, ethics and corporate governance are met, while seeking to foster long-term and sustainable relationships with the entrepreneurs and business partners. It provides a maximum of R7.5 million in seed capital to assist junior mining companies with the feasibility phases of mining projects which, in turn, enable these companies to raise finance from commercial financiers for the commissioning of mining operations. The Anglo Khula Mining Fund is invested in four mining ventures, with five approved investments in the implementation phase. “ Anglo Khula Mining Fund Investments collectively turned over R216 million in 2005 (R87 million in 2004) ” At the outset, Anglo Zimele’s involvement is intensive as it seeks to engage with the companies and their new empowerment partners. The fund’s minority stake in companies allows Anglo Zimele access to and influence in key decision-making processes. Anglo Zimele’s comprehensive value offering includes: • Development of business plans • Assistance with the selection of the BEE partner • Provision of finance for the acquisition of assets and working capital • Assistance with company formation and provision of ongoing company secretarial and administrative services • Assistance with the integration of the BEE partner into the business • The development of a training and development plan for the transfer of skills to the BEE partner • General mentoring and coaching of the BEE partner • Assistance with marketing the business to Anglo American’s business units, specifically for supply linkages, market development and expansion • Leveraging from Anglo Zimele’s identity and branding to obtain additional funding where necessary • Provision of ongoing strategic, operational, financial and business support through representation on the board in a nonexecutive capacity • Guidance on corporate governance issues, corporate ethics, safety, health and environment standards, and HIV and AIDS. This may require the services of Anglo American’s departments in disciplines such as technical, legal, employee relations, human resources, public affairs and media relations The word Zimele is derived from the African languages Zulu and Xhosa and is translated as ‘to be independent’ or ‘to stand on one’s own feet’. Letsosa Matona, the empowerment partner of Kram Engineering, one of Anglo Zimele’s most recent investments Amitech Thushanang Amitech Thushanang was established by Amitech Industrial, a company that has been designing, manufacturing and installing glass reinforced plastic (GRP) and related products and vessels for the metallurgical, chemical and mining industries since 1979. Ashin Tasdhary, managing director of Amitech Thushanang, with Herman Groenewald, operational manager BEE partner Amitech Piping Systems (APS) Umngane Gauteng holds a 40% stake in the business, while Anglo Zimele owns 20%. They joined forces with Amitech Industrial South Africa (formerly Speedmark Plastics SA) which holds 35%, while Waltzing Time Investments owns 5%. Ashin Tasdhary, who has a background in finance and sales, was appointed managing director. He is assisted by Herman Groenewald, a mechanical engineer who oversees operational activities. The company designs scrubbers, cooling towers, fume extraction systems, exhaust stacks and ducting. Through an alliance, it carries out the fabrication and installation of lead products and the recycling of raw materials collected from various sites. APS Umngane Gauteng is a BEE company offering PVC, HDPE and GRP pipes, and related products to the civil, industrial, mining, irrigation and building markets. These products will be added to Amitech Thushanang’s range to enhance its sales drive. Amitech Thushanang is registered with the South African Mining Preferential Procurement Forum, and employs 10 people. Thushanang means ‘help each other’ in Sotho. Asambeni Mining Asambeni Mining, an Anglo Khula Mining Fund investee company, is involved in the mining of the Gus seam for Leeuw Mining and Exploration’s Vaalkrantz anthracite colliery near Vryheid. Asambeni Mining specialises in ultra low seam mining in areas where the usual mechanised methods of mining are not viable. Scraper mining with double drum winches is employed in the areas where the coal seam height is below 800 mm. Asambeni Mining’s site at the Gus seam of Vaalkrantz anthracite colliery near Vryheid, KwaZulu-Natal Coal production commenced in April 2006 with the operation building up to full production by August 2006. The production of 6,000 tons per month is the contractual tonnage to be achieved from August 2006. Its labour force of 120 people has been recruited from the local area. Directors Lunga Ntshulana and Johan van der Colff, who collectively have 54 years of experience in the mining industry, are directly involved with the day-to-day operations of the company. The company has a comprehensive safety programme to ensure the safety and health of employees and to adhere to all aspects of the Mine Health and Safety Act. Anglo Khula Mining Fund holds 25%, Ntshulana 30% and Van der Colff 45%, in Asambeni. Bambanani Health and Safety Bambanani Health and Safety, established by Anglo Zimele in 2000, specialises in the marketing, distribution and support of premium quality personal protective equipment for the mining and hazardous industrial sectors. Anglo Zimele has since divested from Bambanani, making Solly Mogola, who started out as a fitter in the coal mining industry, the sole owner. From his offices in Edenvale, Johannesburg, and Middelburg, Mpumalanga, Mogola oversees the daily operations, sales and marketing functions. Bambanani is primarily a distribution agent for French company Bacou-Dalloz, a world leader and trusted brand of protective ear, eye and respiratory gear. Anglo American operations are Bambanani’s largest customers, while a number of companies outside the Anglo American group has procured protective equipment from the business. Solly Mogola, sole owner and managing director of Bambanani Health and Safety A selection of eye and hand protection gear sold by Bambanani Barcandyle Engineering Benoni-based Barcandyle Engineering, which joined the Anglo Zimele fold in July 2006, supplies a full range of new screening equipment, spares and refurbished screens to the mining industry. The company, established in June 2001, sought to effectively and competently serve the screening needs of the mining sector. Barcandyle’s services include the design, sale, marketing and manufacture of screening equipment, while also offering project management, site work, installation, on-site inspection and maintenance capabilities. hold 30% in Barcandyle, is Vusi Hlabane, a boilermaker formerly employed by Anglo Coal, who will also hold 30%. The remaining 10% is held by Anglo Zimele. With a team of people who have in excess of 50 years of experience in the mining and screening business, the company is well-positioned to address technical and mechanical requirements for all screening equipment on process plants. Mark Goatley, Clive Rabie and Vusi Hlabane of Barcandyle Engineering Owing to its recent expansion, Barcandyle Engineering’s capacity has greatly improved and it is now able to extend its services to a considerably larger client base. Joining Mark Goatley, a production and operations specialist, and Clive Rabie, an industrial engineer, who each A tubular three metre wide banana screen used for dewatering and sizing of gold and coal and sizing of diamonds Coalfields Panelbeaters and Spraypainters Coalfields Panelbeaters and Spraypainters is proud to be the first black empowered panel beating and spray painting company in the Anglo Zimele stable. Based in Witbank, it services the panel beating needs of Eskom, Telkom and Collision Management Services, insurance companies and public customers. It has also secured a contract to repair the vehicles of all Anglo Coal operations in the Mpumalanga area. Simon Ngubeni of Coalfields Panelbeaters and Spraypainters Repairs being carried out on a vehicle with accident damage using a chassis straightening machine Within its first year of operation, Coalfields attained approval from Santam and Mutual and Federal insurance companies, as well as the South African Motor Repairer Association. The company has also been appointed by Regent Insurance as one of only two repairers in the Witbank area while it has also been approved by a number of other major insurance companies. It has achieved its Advance Structure Motorbody Repairer status and certification as a Delta Authorised Panelbeater. Operations director Simon Ngubeni – who has 30 years of experience in the panel beating industry – and managing director Naas Wolmarans lead the business. Ngubeni, who manages the quality control and day-to-day aspects of the business, holds a 40% stake in the venture, while Wolmarans and Anglo Zimele hold 40% and 20%, respectively. Coalfields employs 10 people. Damelin Emalahleni The Damelin Emalahleni Campus was established in January 1996 to serve the education needs of the people of Witbank. Its primary aim is to provide a consistent, high quality and competitively priced education to school leavers, unemployed people who wish to re-enter the workplace and to corporate companies seeking to upgrade and acquire skills. The campus is equipped to address the many training Carina de Bruin takes Elizabeth Motau through some course outlines at Damelin Emalahleni campus requirements of companies and individuals in the area, and became an Anglo Zimele investment in July 2006. Damelin Emalahleni specialises in customising courses to meet corporate requirements, and provides training during the day, at night and on Saturdays to accommodate people who work shifts. It employs 12 people and expects to make a turnover of around R4 million in the coming year. DSI-Mandirk Strata Support DSI-Mandirk Strata Support, the empowerment arm and a marketing agent of DSI South Africa, was established in September 2003 to manufacture and sell a complete range of strata support products for the mining industry. DSI South Africa owns an 80% shareholding in the business, and is a division of the German multinational Dywidag Systems International. The remaining 20% is owned by managing director Gwen Mahuma, who acquired these shares from Anglo Zimele when it divested from the business as part of a defined exit strategy in February 2006. The former CEO of Murray & Roberts, Carlo Di Nicola, is the chairman of both DSI-Mandirk Strata Support and DSI South Africa. The business offers its customers complete solutions which combine extensive service packages and a diverse product line. These products are aimed at the gold, coal, diamond and platinum mining industries, and include resin roof bolts, shepherded crooks, grouting rods, forged head bolts, friction anchors, oslo straps, W-straps and pigtails. As a means of ploughing back into the community, DSI-Mandirk outsources some of its work to the Johannesburg Council for the Disabled. DSI-Mandirk’s managing director Gwen Mahuma The manufacturing of roofbolts at DSI-Mandirk’s Elandsfontein Operation Emalahleni Oil Collections Emalahleni Oil Collections, which was established earlier this year, is the oil collector of choice for a number of mines in the Witbank area and is run by managing director Thomas Mahlangu. Mahlangu gained valuable exposure and experience as a director and shareholder of Witbank Chemicals, where he developed extensive skills in management and logistics. His new venture collects used oil from Anglo Coal South Africa’s nine operating collieries and delivers it to a single site where it is processed for re-use. In this manner, Mahlangu and his small staff of two, play an important environmental role in the Witbank area. Anglo Zimele recently acquired a 20% shareholding in the business, which holds a logistics management contract with chemical manufacturing company Multiclens. Thomas Mahlangu dispenses old oil for recycling at Anglo Coal’s Kleinkopje Colliery Galison Drilling Galison Drilling, which is set to join the Anglo Zimele fold soon, is a manufacturer of drilling consumables for the mining industry and was established by the Thorburn family in 1994. Courtesy: AngloGold Ashanti The Welkom-based company supplies drill steel and drill bits for the hard rock mining sector in South Africa, Botswana, Zambia and Zimbabwe. Galison Drilling manufactures and supplies drill bits and drill steel for underground drilling operations such as those featured here at AngloGold Ashanti’s Tau Lekoa Gold Mine – Vaal River Operations The BEE partner who will acquire a 26% share in the proposed new venture is Ishmael Lesolang. The remaining shares will be held by Anglo Zimele (15%) and the Thorburn, Wilson and McComb family trusts (59%). Galison Drilling recently expanded its business activities with the manufacturing of hopper wheels, skip guide rollers and machined parts for both third parties and its sister companies, Galison Manufacturing and Galison Zambia. Its major clients include Pretoria Metal Pressing, Mopani Copper Mines, AngloGold Ashanti, Harmony Gold Mining, DRDGold and various mining contractors. The business employs 23 people, and expects to enjoy growth of around 20% in the coming year by penetrating the platinum and chrome mining industries, and boosting exports to southern African countries. Gillmich Gillmich is the third largest producer of computer stationery in South Africa, and targets the mining, banking and industrial sectors, in addition to paper distributors, parastatals, and central and local government structures. Ingwekazi Holdings, owned by Wiseman Madinane (80%) and Anglo Zimele (20%), acquired 100% equity in the Johannesburgbased company, which consumes, on average, 4,000 tonnes of uncoated wood free, carbonless, coated and uncoated paper per year. Wiseman Madinane, CEO of Gillmich, with his operation in the background 10 Madinane is the CEO of the enterprise which recently invested R9 million in new equipment and established a presence in Cape Town and Durban. This will give Gillmich the scope to broaden its product range, facilitate further exposure and to generate aggressive growth. In addition to offering general services, which include the printing of business cards, newsletters, books and magazines, it supplies custom printed forms, computer continuous stationery and has a web finishing and stock listing division. Through a common shareholding, the company also has a strategic partnership with Rotunda (Pty) Ltd, which converts thermal and uncoated wood free paper into ATM and cash register rolls. The business has a staff complement of 116 people, 80 of whom are historically disadvantaged. A turnover of R60 million is forecast for 2006. Go-Awaste Management Services Go-Awaste Management Services handle the treatment, transportation and disposal of waste, as well as industrial cleaning for various mining operations and the Rand Water Board. It also manages domestic, commercial, mining and metallurgical waste that contains heavy metal residue and contaminated liquid waste. Go-Awaste works closely with local community groups, such as the Phakgamang Recycling Project in Lebowa and Everest Kiwi Primary school near Everest Platinum Mine. It holds regular cleaning and environmental campaigns with the local community. The company employs more than 160 employees and subcontractors in and around four provinces, and expects to turn over R26 million within the next year. It hopes to obtain its IS0 14001 certification by the end of 2006. In 2003, Go-Awaste was a finalist in the African Small Medium and Micro Enterprise Awards, an initiative of the University of Stellenbosch Business School. The company is black owned (51%) and the balance of the shareholding is spread between Anglo Zimele (11%), Veolia Environment Services (20.5%) and Larox (17.5%), a Finnish company, as the consortium’s technology partner. Go-Awaste represents a perfect blend of sound BEE credentials with foreign capital and competence. A Go-Awaste team sorts scrap metal into different categories HR Intellect In today’s business world, it is a costly and time-consuming exercise for small, medium and micro enterprises (SMMEs) to employ a full complement of human resources specialists. HR Intellect offers a wide range of human resource services to assist such businesses. HR Intellect, a BEE venture, manages the dynamic HR environment and requirements concerning human resources, payroll, training and development, as well as labour/industrial relations and recruitment. HR Intellect focuses on tools and solutions to keep its clients’ businesses compliant in all aspects of labour, ensuring they have an effective workforce. The company, which is owned by Mandy Templeton and BEE partner Wiseman Madinane (a 26% shareholder), offers in-house consultation and a complete outsourced human resources and payroll solution at cost-effective and highly competitive rates. Collectively, HR Intellect has over 20 years’ experience in the HR and people management field. It also offers developmental tools for SMMEs, with a focus on growth for businesses as well as their employees. Darrel Esterhuizen and Mandy Templeton 11 Ikosis Project The Ikosis project involves the proposed mining of feldspar and mica in Steinkopf, which is situated in the Namaqualand region of the Northern Cape. Lower Quartile Solutions (LQS) has been appointed to manage the project’s feasibility study on the Anglo Khula Mining Fund’s behalf. LQS is assisting Ikosis with the development of a sustainable mine with geological studies, orebody development, marketing, mine design, health and safety, environmental controls and rehabilitation. Some of the significant milestones achieved and activities completed at the Ikosis project include drilling and geotechnical investigations, while market development, plant design and costing analysis are at an advanced stage. An independent geological review is scheduled to commence in September 2006. LQS works in collaboration with several other resource and engineering consultancies, allowing access to over 100 engineers and technical specialists all over the world. LQS also has an established track record in consulting, outsourcing and software development services for mine design and development; mineral resource, mine assessment and asset valuation; environmental management; and various engineering disciplines. A view of the Ikosis project in the Northern Cape Itireleng Ore Reclamation Itireleng Ore Reclamation has brought about meaningful empowerment and opportunities for job creation in the Mpumalanga area. Anglo Zimele and empowerment partner Bob Moloi joined hands to forge the black owned company which collects ore by hand at mining operations. Mechanical collection methods leave behind considerable amounts of ore and this created an ideal opportunity to form a new enterprise, and initial employment for 30 people. Bob Moloi, CEO of Itireleng Ore Reclamation 12 Iron ore collection by hand at Highveld Steel’s Mapochs Mine Itireleng has secured a contract with Highveld Steel’s Mapochs Mine. On average, an extra 2,600 tonnes of ore can be collected by hand each month and, of Mapochs Mine’s 890 hectares, 250 hectares require immediate collection. All employees, four of whom are women, reside in communities close to the mine. This concept could also be applied at coal operations by way of removing remnants of coal from the pits and cleaning spillages at tipping points. The fledgling company expects a turnover of more than R740,000 within the next year and is looking into taking over the screening processes at the mine. Moloi, managing director of the operation, acquired 51% of the new company, while Anglo Zimele acquired the remaining equity of 49%. Itireleng means to ‘do it for yourselves’ in Northern Sotho. Kram Engineering Kram Engineering, an established player in the non-ferrous wearresistant materials market, deals in the sale, installation, and maintenance sectors of the supply chain, lining pipes, chutes, silos, feeders, bins, launders, tanks and specialised high-wear applications such as hydro cyclones, disintegrators and screw conveyors. Established by managing director Ferdi Barnard in 1996, the business employs 41 people and is based in Sebenza, Johannesburg. It recently opened a branch in Trichardt, Mpumalanga. Serving clients such as Anglo Platinum, Columbus Stainless Steel, Kumba Coal, Highveld Steel and Vanadium Corporation, Kram Engineering’s expected turnover for the next year is R36 million. To facilitate the investment, Anglo Zimele and the black empowerment partner in the venture, Letsosa Matona, formed a new company known as Rephetse Investments which owns a 26% stake in the company. Barnard remains the majority shareholder together with sales director Chris de Bruin and financial director Elize Crous. Kram is looking into assisting five underprivileged young learners from the Abraham Kriel Children’s Home with their schooling and, where possible, with tertiary education. Alumina ceramic lining carried out by Abram Mokami (foreground) and Mlanduli Zwabo at Kram Engineering’s operation in Sebenza, Gauteng Langa Lethu Risk Management Langa Lethu Risk Management, established by Jan Breedt in 2000, represents Anglo Zimele’s first black empowerment deal in the security sector. The company is dedicated to the mining industry and specialises in providing security, cleaning, landscaping and hygiene services. Langa Lethu started out by providing security services to Anglo Coal’s Kleinkopje, Greenside, Isibonelo, Goedehoop and Mafube collieries, as well as to the division’s Witbankbased shared services precinct. Further to the involvement of Ejawe Holdings, the BEE component of Langa Lethu, and Anglo Zimele, it is currently negotiating a partnership with Bidvest under the Bidrisk Solutions structure. This will triple its annual turnover to R48 million and increase its employee complement to 700. Aubrey Leeuw, who is a shareholder and director of Ejawe Holdings, is chairman of Langa Lethu’s board of directors. Langa Lethu, which means ‘let the sun shine over us’ in Zulu, now not only provides security services to Anglo Coal, but to other major role players within the mining industry. The Langa Lethu team in action at Anglo Coal’s Goedehoop Colliery 13 Leeuw Mining and Exploration Leeuw Mining and Exploration (LME) acquired the rights to mine and explore Anglo Coal’s KwaZulu-Natal coal reserves of anthracite and bituminous coal. At LME’s Vaalkrantz operation are, clockwise from back, Charles Naidoo (general engineering supervisor), Danie Victor (mine overseer), Willy Leeuw (CEO) and Willy von Burick (mine manager) It is a joint venture between JPI Leeuw and Associates, a BEE consortium which holds a majority stake of 80%, Anglo Zimele (10%), and Kobus Rothmann and Ken Smith who hold the remaining shares. The company continues to enjoy a technical association with Anglo Coal, benefiting from extensive knowledge and skills transfer. 439 people, of whom 333 are historically disadvantaged, and boasts an expected turnover of R110 million over the next year. LME has secured an annual export allocation of 200,000 tonnes from the Richards Bay Coal Terminal allotment for the current year. The mine is producing between 480,000 and 540,000 tonnes of anthracite per year. LME is looking into expansion opportunities to develop additional anthracite reserves at Koudelager and steam coal reserves in the Newcastle area. LME’s Vaalkrantz Colliery, which was officially opened in September 2004, employs LME has donated clay mining rights from its Newcastle reserves to the local community. Lesedi Tracks, an underground rail track-laying and maintenance company, operates from Rustenburg and services Anglo Platinum’s mines and similar operations in the area. Lesedi Tracks currently employs 185 historically disadvantaged South Africans and has maintained not only steady growth since its inception but also an excellent safety record. Lesedi Tracks It was established by construction and engineering group Grinaker LTA and Anglo Zimele out of the need for considerable bottom line savings at mining operations. Rail track laying at Paardekraal Shaft in Rustenburg 14 Previously, Grinaker LTA Mining Products employed black artisans to install, build and maintain rail tracks using concrete sleepers. Their skilful installation of these sleepers created an obvious business opportunity for entrepreneurs in a BEE venture. Edgar Keforilwe, managing director of Lesedi, is responsible for tendering and liaising with mine management, and Phillip Sales, contracts manager, handles the technical management for underground construction. Keforilwe holds a 40% majority share in the business, while Grinaker LTA owns 30%. Nelson Mathombo holds 5% and Phillip Sales the remaining 25%. Maccauvlei Training and Conference Centre The Maccauvlei Training and Conference Centre offers a wide array of training and development courses and programmes, and boasts an extensive list of clients, including BMW, Mondi, AngloGold Ashanti, De Beers, Barloworld, Sun International and First National Bank, to name a few. It has gained almost half a century of experience in developing and delivering training solutions designed to achieve the required outcomes of its clientele. Maccauvlei is a 40-minute drive from Johannesburg and is easily accessible from Gauteng and the Free State. It is accredited with the Education Training and Development Practices’ Sector Education and Training Authority (Seta) and, where applicable, has memoranda of understanding with other Setas. The centre boasts a trainer development unit which has grown into one of the leading providers of this type of training in the country. It has a full suite of trainer development courses, from entry to strategic management level. Customised training has grown as a result of extensive international benchmarking, best practice application and research and development. A BEE transaction facilitated by Anglo Zimele is in progress. Maccauvlei Training and Conference Centre Mapungubwe Engineering Mapungubwe Engineering, founded by a group of black professionals in 2003 and certified by the South African Mining Preferential Procurement Forum, is 68% black owned, 60% black managed. It aims to provide innovative and environmentally sustainable solutions and services in the manufacturing, mining, petrochemical, projects and energy sectors in South Africa, Africa and worldwide. The company provides a diverse civils and construction service to Sasol Coal, Highveld Steel and Anglo Coal. Mapungubwe’s competitive edge is the company’s on time delivery, quality work and satisfactory safety record, as well as ongoing staff training. Its areas of expertise and specialisation include civils and the construction of commercial and residential buildings, the implementation of maintenance contracts in factories, sheeting and cladding for domestic, retail and industrial properties, the supply of selected engineering commodities and infrastructure development projects. Freddy Mugeri, executive chairman, holds 9.6% in Mapungubwe. Executive directors David Ras and Schalk Pretorius hold 9.6% and 2.2%, respectively, while non-executive directors Richard Mkhonta and Caleb Mabaso hold 9.6% and 0.4%, respectively. Anglo Zimele owns 19.97%. The balance of the equity is owned by a group of black professionals. Freddy Mugeri, chairman of Mapungubwe Engineering 15 Multiclens Established in 1994, Multiclens is a chemical manufacturing and distribution venture that supplies biodegradable, nonflammable safety degreasing fluids, as well as dust control chemicals for tailings dams, underground mines and roads. With clients such as Anglo Coal, Anglo Platinum, AngloGold Ashanti and BHP Billiton on board, the business places great emphasis on educating the end-user about making responsible choices in replacing solvent-based degreasers with modern and environmentally acceptable alternatives. Norman Siphei (factory assistant), Lifford Zwane (supervisor assistant), Bridget Hall (managing director), Robert Moshipya (technical and laboratory supervisor) and Steward Malinga (factory supervisor) with a selection of Multiclens’ range of degreasing fluids and dust suppressants Multiclens, owned and managed by Bridget Hall, has risen from the innovative development of environmentally acceptable products for a small sector of the market to being widely accepted within the major mining and steel sector as the leading manufacturer and supplier of these items. The growth of the company has ensured rapid and effective skills transfer to employees, with several having improved their skills base within a short period of time. Both technical and managerial skills have been shared at various levels, from skilled workers to senior management positions. Naledi Computer Systems Naledi Computer Systems provides its clients with software and hardware support, server and network consulting, as well as installations, configurations and integration strategies. Naledi has a team of qualified and specialised support engineers and has recently expanded its consulting service to include scanning and related services. These include bulk small format, large format and all types of film scanning, with conversion, draughting, retrieval and other value-added enhancements adding to its service offering. Joe Monakali does a routine check on a client’s computer server and network 16 The business is headed up by managing director and black empowerment partner Joe Monakali who has a 63% shareholding. He is supported by his technical partner Jaco du Toit who owns 12%. GijimaAST – an empowered JSE-listed information technology solutions and services company – holds a 25% shareholding, affording Naledi access to a large pool of resources, best practices, experience and expertise. Naledi also services clients that are too small for GijimaAST to consider. In 2005, Naledi was appointed as an approved State IT service provider and has contracted a consultancy to assist with sales and marketing to drive growth. It has also recently secured a contract at Maccauvlei Training and Conference Centre. The business, which employs 20 people, expects a turnover of R8.6 million over the next year and was voted by Impumelelo as a Top 300 BEE company in 2004. The word Naledi, derived from Tswana, means ‘Star of Africa’. Nomakanjani Logistics Anglo Zimele, Unitrans Freight and Bakgotsi Holdings united in 2004 to put Nomakanjani Logistics, a road haulage and transport enterprise, on the highway to prosperity. Nomakanjani secured a threeyear contract to load and haul approximately 3,6 million tonnes of coal from Mafube colliery, a joint venture between Anglo Coal and Eyesizwe Coal, to Eskom’s Arnot power station outside Middelburg. Within seven months of commencing business, Nomakanjani increased its staff complement by nearly 50% to 55 people, 54 of whom are historically disadvantaged South Africans. The thriving venture also increased its fleet by 42% in the same period. Serious about safety and quality, the company has ISO 9000, ISO 14001 and OHSAS 18001 accreditation. Ernest Ncube of Bakgotsi Holdings is the chairman of the company, while Petrus Hlengetwa serves as contract manager at Mafube colliery. Hlengetwa is a former Unitrans employee with more than 12 years of experience to ensure operational excellence at Nomakanjani. Nomakanjani expects to generate a turnover of R29 million in the next 12 months. The Mafube contract alone is expected to generate more than R40 million over the 36-month period. Unitrans Freight has a 44% share in the business with Anglo Zimele and Bakgotsi Holdings owning 26% and 30% respectively. Nomakanjani’s name was derived from the Zulu phrase ‘no matter what’. Nomakanjani Logistics currently services the load and haulage needs of Mafube colliery NRB Piping Systems NRB Piping Systems is involved in the sourcing, fabrication, installation and maintenance of various plastic piping systems, primarily to mining, industrial, civil engineering and agricultural companies in the Richards Bay and Zululand area. Anglo Zimele was party to a successful BEE transaction between empowerment partner Lindani Myeni and the van Tilburg family, creating NRB Piping Systems. Idada Holdings, a joint venture between Myeni and Anglo Zimele, holds a 26% stake in NRB Piping Systems, while the van Tilburg family holds 74% in the nine year old business. The company has its five star NOSA and NCA ratings and is currently working towards ISO accreditation. It was also a winner in the best small business category, as well as the premium category of the Zululand Chamber of Business Excellence Awards in 2005. NRB Piping Systems supports various community organisations and advises rural communities on the installation of pipes and maintenance of community water schemes. Lindani Myeni, NRB Piping Systems’ empowerment partner HDPE plastic pipe installation on site for the city of uMhlathuze in KwaZulu-Natal 17 PH Projects PH Projects, based in Elandsfontein, was established in 1989 as a structural steel erection contractor. Since then the company has grown gradually into a multi-disciplinary engineering and contracting firm. Installation of a conveyor belt system at the Sasol/Kriel South project PH Projects specialises in construction and bulk materials handling, and servicing the mining, petrochemical, agricultural and general industrial environments. Its services include the erection of structural steel, design and drafting work, fabrication, procurement, project management, turnkey management, heavy lifting, and supply and construction management. Typical applications of its solutions include various conveyor systems, crushing and screening plants, belt and vibrating feeders, stackers and reclaimers, transfer and weighting systems, storage facilities and buildings on mining and industrial sites. PH Projects is a strategic partnership between the Hennop family as majority shareholders, and empowerment partners Goodman Mthombeni and Engela Hennop. It is 26% owned by Fame and Fortune Trading, a BEE company owned by Mthombeni, while Engela Hennop holds 18.5% and the Hennop family 55.5%. In 2005, Bateman acknowledged PH Projects’ contribution to the achievement of 450,000 injury free man hours at the Sasol Kriel South Project – Material Handling Systems. Sasol also awarded PH Projects for its contribution towards achieving 669,100 hours without a lost time accident on the Sasol Kriel South Project. Probe Witbank Probe Witbank, which enjoys over 40 years of industry experience within the organisation, was established in 1996 out of the need to service the heavy-duty auto electrical needs of the mining and industrial sectors. Keith Concar, operations director and Brian Wilcox, sales manager The company is managed by shareholder and operations director Keith Concar, who holds 35%, while Fawick Probe Corporation, which itself has a BEE shareholding of 30%, holds 35%. Brian Wilcox, sales manager, holds 10%. The company is currently entering into a new BEE agreement for the remaining 20%. Probe Witbank employs 19 people and looks forward to expansion in the near future. The company caters for a wide range of service requirements, 18 from light delivery vehicles to haul trucks. Its products include starters, alternators and batteries; strobe lights, work lights and reverse alarms; gauges, on-board cameras and instrumentation; as well as a wide range of auto electrical consumables such as wiring, cable, switches and globes. Probe Witbank also offers a field service for auto electrical and airconditioning repairs. The Probe group is currently setting up a skills development training programme and supports the BEE scorecard development system with the intention of complying to the highest level. In community development, the company supports local schools and the Witbank Community Centre, and has recently agreed to sponsor the Witbank Spurs Football Club. Semane Consulting Engineers Semane Consulting Engineers, established in 1998 with 25 employees, is an independent and owner managed multidisciplinary engineering consulting company which is 41% owned by black management. The company is led by five executive directors and employs more than 60 engineers and technicians, 40% of whom are black South Africans. Semane’s proficiency is underpinned by the technical profile of its employees; each with an average of 18 years’ experience. Semane has extensive expertise in concepts, feasibility studies, design and detailing, capital estimating, risk assessments, structural protection and rehabilitation and construction supervision of large and small capital projects. It also has wide-ranging experience in geotechnical, civil, infrastructure, environmental, structural, materials handling, electrical, control and instrumentation engineering. Semane designed the Palabora Mining concrete headgear, as well as the underground crusher foundation, the largest of its kind in the southern hemisphere. Its key clients operate in the mining, industrial development, commercial and public environments in South Africa, Botswana, Mali, Namibia, Zimbabwe, Zambia, Tanzania and Mozambique. It is a member of the South African Association of Consulting Engineers, and has received the Impumelelo Top 300 BEE Company Award every year since 2003. Currently, Semane’s turnover is in excess of R30 million per year. From left Joe Araujo (managing director), Brian Slabbert (director), Bernhard de Klerk (director), Peter Sharland (director), Rui Couto (alternate director) and Joel Mokgohlwa (chairman) ScanMin Africa Anglo Zimele has ventured into the online analysis sector and, together with BEE entity Vika Investment Holdings, is taking ScanMin Africa to greater heights. ScanMin Africa specialises in the supply and support of online analysers which allow for the real-time analysis of ore in various mining and mineral beneficiation processes. Anglo Zimele and BEE partner Harvey Nkosi, formed Vika Investment Holdings in January 2005 and subsequently acquired a 26% equity stake in ScanMin Africa. Nkosi holds 51% equity in Vika while Anglo Zimele holds 49%. The company was founded in 2000 and has made significant inroads into the local mining and minerals industry with the support of its Australian principals. Its products include elemental analysers used in both the coal and minerals sectors, particle size analysers for slurries, particle size analysers for bulk ores and moisture monitors. Potential applications of analysers for process control solutions are numerous – for example, quality control, blending and stockpile building. The use of analysers in South Africa is a relatively new concept and market acceptance is growing. The latest enhanced technological developments coupled with Anglo Zimele’s involvement make for an exciting future. The installation of the Coalscan 9500X at Anglo Coal’s Kleinkopje Colliery 19 Sinoville Fencing Sinoville Fencing, founded over 30 years ago, specialises in the manufacture, construction, service and maintenance of fences. Its product range includes palisade, razor mesh, diamond mesh, stock proof, game, field, industrial and electrical fencing, intercom systems and custom made and automated gates. Fanie Niemann at Sinoville Fencing’s Witbank office Sinoville’s black empowerment partner, Lawrence Maroos, and operations manager Fanie Niemann each hold 40%. Anglo Zimele has a minority shareholding of 20%. Niemann has 20 years of experience in the industry and now heads up the venture, with Maroos overseeing marketing and new business development. The empowered venture employs 30 people, and is expected to generate a turnover of R4,3 million over the next 12 months. The company has received wide support and positive feedback from local companies and it has secured relationships with other mining companies. Sinoville is the only company in the Witbank and Middelburg areas that offers electric fencing solutions. Sinoville is currently operating in Steelpoort at the Two River Platinum project and plans to open a branch in the area. Specialised Rubber and Industrial Anglo Zimele joined forces with the Hira Heritage Trust to empower Specialised Rubber and Industrial in April 2005. Specialised Rubber and Industrial was created out of the merger of the company’s four separate business units: Specialised Belting and Hose, Specialised Rubber Products, Specialised Rubber Hoses and Flexible Metallic Hoses. Simon Mabena of Specialised Rubber and Industrial, taking stock of stainless steel exhaust tubing 20 This ISO 9001: 2000 certified company boasts a diverse range of rubber and industrial products, including hand-built rubber hoses and bends, stainless steel flexible metallic hoses and exhaust tubing, extrudates, calendared sheeting, steep-incline conveyor belting, press-cured sheeting, knee guards for the mining industry and ex-stock rubber conveyor belting and hose. Specialised Rubber and Industrial, which supplies to power stations, mining operations and construction companies, yields an annual turnover of approximately R90 million and employs 150 people, 116 of whom are historically disadvantaged South Africans, at its Alrode and Brakpan sites. Hira Heritage Trust, the BEE entity, holds 26% in Specialised Rubber and Industrial. The existing management and shareholders, through Specialised Holdings, retain a 64% stake. Harry Hira is the managing director and an existing shareholder. This brings the BEE shareholding to an effective 31%. Anglo Zimele holds 10%. Thabo Piping Systems Thabo Piping Systems – a pipeline construction and maintenance enterprise – fabricates, installs and maintains thermoplastic piping at various mining, industrial and power generation operations in the Witbank region. It is a joint venture between Ian Graham (40%), black empowerment partner Stephen Mnguni (30%), Petzetakis Africa (15%) and Anglo Zimele (15%). This partnership empowers the company with financial, managerial and technical expertise – essential elements in any business. As the principal technical partner in the venture, Petzetakis Africa provides the business with specialised expertise, while Anglo Zimele offers its support with administrative, legal and company secretarial services. Mnguni, formerly a welder foreman at Zaragon Plastics, supervises maintenance teams and oversees the fabrication and installation of piping systems. Thabo Piping turned over R20 million in 2005, and had its first taste of the construction industry with a 2,6 km pipe installation project under way in Garankuwa. The company, which employs 32 people, boasts an exceptional safety record which it believes has been achieved through commitment from all employees. The Thabo Piping team works on a HDPE pipe at Anglo Coal’s Kleinkopje Colliery Transcend Empowerment Advisors Transcend is a broad based BEE consultancy, focusing on all aspects of the service value chain. Its service offering to all industry sectors includes strategy consulting, end-toend transformation change management, transformation feasibility studies and models, BEE strategy development, BEE partner sourcing and BEE capacity building and training. The company, which joined the Anglo Zimele fold in September 2006, employs four people and looks to its broad network of experts and consultants for specific projects. The three partners are Lisa Tait, Kevin Lester and Andrea Brown. The major shareholders include the Lester family trust, Tait, Brown and Mohlaleng Strategy Advisors. Transcend is currently seeking to expand its BEE shareholder base. The Transcend team is Kevin Lester, Andrea Brown, Lisa Tait and Cheslin Mostert, representing Mohlaleng Strategy Advisors 21 Tyre Corporation Holdings Tyre Corporation Holdings (TCH), based in Midrand, Gauteng, specialises in the supply, service, construction and maintenance of all tyre requirements for the mining sector and selected transport operators. Bruce O’Ehley and Colin Brown, identified a viable business opportunity within the local tyre replacement market. Clockwise from back are Sipho Mavolontiya, Daan Badenhorst, Colin Brown and Bruce O’Ehley With special emphasis on a strong BEE partnership, TCH brought on board Sipho Mavolontiya, who holds a 13% share in the venture. An employee trust, an initiative of O’Ehley and Brown, holds a 13% equity stake in the business, while the remaining shareholding is owned by Anglo Zimele (13%) and management (61%). Mavolontiya has been commercially active in the industry and tyre recycling technology since 1997. His knowledge of the sector and his network built up over time are of great benefit to the company. TCH employs a collective 355 people at its 15 branches and recorded a turnover of more than R250 million in 2005. Urethane Moulded Products Anglo Zimele, together with Veli Thwala and Trevor Carolin, is moulding a world-class future for Urethane Moulded Products (UMP), an Edenvale based company that manufactures a wide range of urethane based components and is one of the largest players in its market. UMP’s products offer outstanding abrasion resistance, impact absorption and resilience properties, making them ideal for the mining, industrial, chemical and processing markets. A 110 mm lateral pipe fitting from UMP’s new Inyati piping range used for pipe launders in a mineral sands plant UMP’s latest range of Armadillo sheeting used as a lining in a mill feed spout for a platinum mine. Thwala and Anglo Zimele created Umshiva Investments, which acquired a 30% stake in the 30 year old company. Carolin Investments, which purchased the business from its founder in 2001, now owns 70%. The company boasts an annual turnover of around R10 million and 22 currently has agents in Richards Bay, Rustenburg, Kimberley, Witbank, the Cape and Zambia. Among its clients are AngloGold Ashanti, Anglo Platinum, Anglo Coal, Ticor, Konkola Copper Mines and Impala Platinum. It also has strong links with international suppliers of raw materials and processing technology in France and Australia, and is listed on Quadrem, the Global eMarketplace™. UMP continues to invest in advanced technology, giving it the edge in more cost-effective, hard-wearing cast urethane products. It has recently proven itself in tests showing that UMP urethanes can outlast other formulations in tough slurry environments. Coupled with this cutting-edge technology, it views empowerment as of strategic importance to the sustainable growth of the business. Worldwide Coal Worldwide Coal is a thriving operation focused on developing, exploiting and beneficiating its coal reserves in Carolina, Mpumalanga. The company operates a coal washing plant and a mine near Carolina and holds prospecting rights to significant amounts of high-quality coal reserves concentrated in the area. These give the operation critical mass and a life of over 25 years. The company was formed by Briss Mathabathe and Joel Mokgohlwa and was formerly called Imbani Coal (Pty) Limited. In June 2006, Worldwide African Investment Holdings (Pty) Limited acquired a 51% controlling interest in the company. Other shareholders are Carolina Coal (15%), the Anglo Khula Mining Fund (15%), Imbani Coal Holdings (Pty) Limited (9,1%) and the management team (9,9%). The bulk of Worldwide Coal’s production is exported to Europe and Asia, and the company is in the process of developing a domestic market. Worldwide Coal has been granted export allocation via the Richards Bay Coal Terminal. The mining plan caters for an increase in production to one million tonnes per year by 2008, coinciding with the addition of a new rail siding and second wash plant capable of handling 70,000 tonnes per month. Worldwide Coal employs four permanent employees, and approximately 150 people through sub-contractors. The coal operation of Worldwide Coal, based in Carolina, Mpumalanga Its expected turnover for the next 12 months is R150 million. The company has reported an excellent health and safety record and strives for the highest possible standards in this area. 23 Anglo Zimele board of directors Godfrey Gomwe Nick van Rensburg Tebello Chabana David Fish Ben Magara Greg Maud Norman Mbazima Don Tooth Chairman Managing director Contact information Anglo Zimele Empowerment Initiative Limited Telephone + 27 11 638 4172 Fax + 27 11 638 5321 Anglo Zimele office bearers Nick van Rensburg Sandra Berry Louwrens de Jager Natalie Karod-Domingo Larisha Naidoo Joel Ntlhakana Verushca Pillay George Serobatse Lia Vangelatos Managing director Administrative assistant Business development manager Company secretary Companies accountant Business development manager Legal advisor Anglo Khula Mining fund manager Anglo Zimele fund manager Email zimele@angloamerican.co.za Website www.anglozimele.co.za Postal Address PO Box 61587 Marshalltown 2107 Johannesburg Produced by Anglo American Corporate Communication Department and Frog Communications This publication is printed on Condat matt, a paper supplied by Mondi 24 Anglo American South Africa Limited PO Box 61587 Marshalltown 2107 Tel +27 11 638 9111 Fax +27 11 638 2557 www.angloamerican.co.uk Issued September 2006