Anglo American has signed a landmark 10-year, $100 million loan agreement with the International Finance Corporation (IFC) which will focus on supporting community development near its operations in South Africa.
According to Anglo American, the loan is not only IFC’s first for the mining industry, but also the first-ever mining-focused loan exclusively focused on social development.
The leading miner said the loan underpins its sustainable mining plan and will support job creation and improve the quality of education for more than 73,000 students in rural communities near its southeastern operations. African. Anglo American has diamond, platinum group element (PGE) and iron ore assets in South Africa.
“Our Sustainable Mining Plan has an ambitious set of global goals related to creating a healthy environment, building thriving communities and being recognized as a trusted business leader,” said Stephen. Pearce, chief financial officer of Anglo American.
“We designed our goals to challenge ourselves to lead and innovate in the best way to deliver meaningful and lasting value to society, and especially to the people closest to where we operate.”
Through its Sustainable Mining Plan, Anglo American has set itself the goal of helping schools in its host communities rank among the top 30% of public schools nationally. The company is also striving to create or support three offsite jobs for every onsite job in its operations by 2025.
IFC Director for Southern Africa and Nigeria, Kevin Njiraini, said this type of financing is the way of the future.
“Sustainability-related finance is a powerful tool to raise capital and incentivize companies looking to contribute to a more sustainable future,” he said.
“(IFC’s) partnership with Anglo American will support quality education for young learners, strengthen human capital development and boost small businesses in South Africa.”
The loan is part of Anglo American’s broader engagement with IFC on local social development.