Kumba Iron Ore awards R1.6bn contract to Black-owned community-based joint venture

Kumba Iron Ore CEO Themba Mkhwanazi

Said Kumba Iron Ore CEO Themba Mkhwanazi: “Awarding a R1.6bn 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.

“This is a major step in showing how South Africa can unlock its growth potential through mining. We’ve always seen mining as a catalyst for broad-based development. This contract goes far beyond philanthropy or corporate social responsibility. This is the business of mining, and it will help ensure host communities become direct participants in, and beneficiaries of, the mining operations that take place in their own backyards,” said Mkhwanazi.

The joint venture has an initial target of producing between 5-10 million tonnes of ore in the first year. As part of the contract, Kumba will provide ongoing upskilling and support to the joint venture to ensure quality and safety standards are met.

The joint venture comprises four 100% black community-owned companies:

• AND310 Mining Services is the majority shareholder at 60% and is 51% black female-owned based in Mothibistad. Its MD Kabelo Burks Andreas has extensive mining experience with De Beers and BHP Billiton.
  
• Postmasburg-based Andisa Holdings holds 15% shareholding and has been supplying loading and hauling services to the mining industry for more than 10 years. Its MD is Wayne Witbooi.
  
• Matshla (Pty) Ltd, which services the mining and agriculture industries, holds 10% shareholding. It is headed by Kennedy Botsheleng, who has nearly two decades of experience in the mining industry in both underground and opencast mines.
  
• Peontle Investment (Pty) Ltd also holds 15% shareholding and is based in Boichoko, Postmasburg, and is headed by Mangaliso Kies.

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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.