Procurement and supply chain

Xstrata does not have a central procurement policy, preferring to allow sites to source products and services locally, or at a regional or commodity business level. This approach emphasises local procurement and we give preference to site area suppliers wherever possible. It also provides greater flexibility to our operations in planning and securing procurement.

Matthews Ramerula, Joel Chauke, Abihaar Magodielo and Alfred Makgetle at Boshoek ferrochrome smelter

We engage with our suppliers to assess HSEC performance and policies according to our HSEC Management Standard: Suppliers, Contractors and Partners. All suppliers and contractors are provided with a copy of our corporate policies including our Business Principles and we encourage suppliers to adhere to these principles. We pay suppliers promptly and ensure that all transactions are properly authorised and accurately recorded.

We pay and we ensure that our contractors pay the salaries and benefits to their employees at least in accordance with the legal requirements and benchmarked to industry norms in the relevant geographic regions.

Enterprise development

We seek to nurture sustainable communities by supporting local business ventures and enterprise development, as well as employment, training and education programmes that improve the skills and capacities of local people. Enterprise support and development is a significant area of support for Xstrata's community relations and corporate social involvement programmes, particularly in South Africa, Peru and Argentina. Typically our support takes the form of interest-free or 'soft' loans, donations, equipment purchase or hire, management and other expertise.