‘Kumba concludes R1.6 billion black-owned community mining contract’ 12 January 2022

Kumba Iron Ore has announced the awarding of an industry first R1.6 billion mining contract to a new black-owned and community-based joint venture to mine iron ore at its Kolomela Mine in South Africa. The joint venture represents another major advance towards Kumba’s goal of developing sustainable communities and businesses that help transform the South African mining industry. Kumba Iron Ore CEO Themba Mkhwanazi said, “Awarding a R1.6 billion contract to community-based miners is truly groundbreaking. It is the most tangible demonstration yet of Kumba’s commitment to the economic inclusion of local suppliers from our community.

…Joint venture spokesperson Kabelo Andreas, said the contract was a ‘massive step for transformation’ in the local mining industry, as the communities would for the first time operate and benefit directly from their local mining operations. “This is very exciting and big step up for us. We may be small businesses, but we are all steeped in mining and in our communities. Now we will have iron ore under our fingernails and on our balance sheets. “We want to be the proof that mining, through local models like this one, can deliver real value that can be shared by all stakeholders – from local businesses and our community. “We’ve been walking a road of transformation with Kumba for several years, and this contract demonstrates their commitment to getting local communities involved in the decisions that affect their lives,” said Andreas.

…The company now procures goods and services from 309 of community-based suppliers while providing training and mentorship to new companies wanting to join its supplier network. “This contract underscores our commitment to developing host community suppliers with an additional focus on increasing the number of black-, women-, and youth-owned businesses around our mining operations,” said Mkhwanazi. “We’re 100% committed to taking a long-term view of development and creating thriving communities in line with our Sustainable Mining vision. When our mines are gone, the communities will remain, and it’s critical that we do everything we can to ensure they are still thriving and sustainable beyond mining.”