Anglo American has signed a landmark 10-year, $100-million loan agreement with the International Finance Corporation (IFC) that will be focused on supporting community development near its operations in South Africa.
According to Anglo American, the loan is not only the IFC’s first for the mining industry, but also the first ever mining-focused loan exclusively centred on social development.
The major miner said the loan underpinned its Sustainable Mining Plan and would promote the creation of jobs and improve the quality of education for more than 73,000 students in rural communities near its South African operations. Anglo American has diamond, platinum group elements (PGEs) and iron ore assets in South Africa.
“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,” Anglo American finance director Stephen Pearce said.
“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.”
Through its Sustainable Mining Plan, Anglo American has targets to assist schools in its host communities to perform within the top 30 per cent of state schools nationally. The company also strives to create or support three off-site jobs for every on-site job at its operations by 2025.
IFC director for southern Africa and Nigeria Kevin Njiraini said this kind of financing is the way of the future.
“Sustainability-linked financing is a powerful tool for mobilising capital and to incentivise companies that seek to contribute to a more sustainable future,” he said.
“(The) IFC’s partnership with Anglo American will support quality education for early learners, strengthen human capital development, and boost small businesses in South Africa.”
The loan comes as part of Anglo American’s broader engagement with the IFC on local social development.