The Chronicle
Nqobile Bhebhe, Senior Business Reporter
PLATINUM Group Metals (PGM) producer, Zimplats, says it has accelerated its inclusive socio-economic growth through scaling up local enterprise development (LED) spending to US$552,5 million on local procurement.
This represents a 31 percent increase from last year’s spend of US$423 million.
The miner said this is part of its socio-economic growth agenda through progressing the implementation of its structured LED programme.
Zimplats, in its 2022 integrated annual report, said it was committed to creating a better future through developing economically self-sustaining and inclusive mine communities.
The LED programme was launched in 2013 to capacitate and grow local indigenous companies and the objective is to align the LEDs to the standards of Zimplats’ way of doing business and core values.
This is positively contributing to a resilient supply chain for Zimplats and the economic and social development of the communities in which the company operates, it said.
The major focus is on previously disadvantaged groups who include women and the youth.
“Total discretionary procurement spend amounted to US$552,5 million, a 31 percent increase from last year’s spend of US$423 million,” said the company.
“Local spend totalled US$321,4 million, which is 58 percent of the overall discretionary spend for FY2022 and above the target of 50 percent.”
The report said the increase in local spending was mainly attributable to the capacitation of local suppliers to participate competitively in Zimplats’ major projects, especially in service delivery and provision of locally available materials. Of the overall spending for the year, 42 percent (US$231 million) is attributable to imports.
This comes as the mining giant said it has projected an exciting future as it rolls out a staggering US$1, 8 billion in capital projects over 10 years creating opportunities for local employment.
On employment creation, the firm said as at 30 June this year, the 22 LEDs provided decent work to 3 038 people, a 20 percent increase in employment creation from 2 534 people in FY2021. It said employment creation rose by 504 jobs during the year mostly due to growth and expansion projects being undertaken by Zimplats.
Turning to revenue generation the LEDs supplied Zimplats with various products and services, which included engineering, medical, haulage, drilling, labour broking, underground support legal advisory services, catering and facilities management solutions, protective clothing, bricks and silica.
“As at 30 June 2022, LEDs spending amounted to US$54,9 million, a 37 percent increase from FY2021 spend of US$39,8 million, as shown below,” said the company.
“A total of US$341.3 million has been invested in the procurement of goods and services from the LEDs since the programmer’s inception in FY2013. Furthermore, additional business averaging US$18,2 million was extended by Zimplats to the LEDs’ sister companies in FY2022.”
