Diversified miner Anglo American has signed a $100-million ten-year loan agreement with the International Finance Corporation (IFC) linked to the delivery of sustainability goals that are integral to the mining group’s Sustainable Mining Plan.
The specific goals tied to the loan agreement are aimed at supporting community development in rural communities close to Anglo’s mining operations across South Africa, including by promoting the creation of jobs, as well as improving the quality of education for more than 73 000 students.
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This sustainability-linked loan is the IFC’s first in the mining sector and is understood to be the first in the mining sector globally that focuses exclusively on social development indicators.
“Sustainability-linked financing is a powerful tool for mobilising capital and to incentivise companies that seek to contribute to a more sustainable future.
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“The IFC’s partnership with Anglo will support quality education for early learners, strengthen human capital development and boost small businesses in South Africa,” says IFC Southern Africa and Nigeria director Kevin Njiraini.
This loan is part of a broader IFC engagement with Anglo on local social development, including in Peru where the IFC, Anglo and other partners are supporting regional development initiatives.
“Our Sustainable Mining Plan has a set of ambitious global goals relating to delivering a healthy environment, creating thriving communities and being recognised as a trusted corporate leader.
“We designed our goals to challenge us to lead and innovate in how we can best deliver meaningful and enduring value to society and particularly to those nearest to where we operate.
We are delighted to now link some of our education and job creation targets to this loan as an additional demonstration of our commitment to deliver real and tangible benefits for our host communities,” comments Anglo FD Stephen Pearce.
The group’s Sustainable Mining Plan includes targets to support schools in host communities to perform within the top 30% of State schools nationally and to create or support three off-site jobs for every on-site job at its operations by 2025.
“To achieve our education target, we will aim to strengthen the public education system by training educators, practitioners and school management teams, and upgrade basic school infrastructure and equipment including providing WiFi and computers at over 100 primary and secondary public schools in South Africa.
“We are already supporting more than 73 000 students from early childhood development centres, primary schools and secondary schools, with more children to benefit in Phase 2 of the programme.
“To achieve our livelihood target, we plan to provide mentorship, capacity building, skills development and access to finance to small businesses in the mining value chain and in other sectors, with a focus on women and young people. Since 2018, we have supported over 13 500 jobs and facilitated R430-million of loans to small businesses in South Africa through Anglo’s Zimele Loan Fund,” says Anglo responsible business partnerships head Jonathan Samuel.
Anglo has committed to contributing additional funds to agreed social causes if it falls short of fully achieving its education and livelihood targets under the terms of the IFC loan.