Johannesburg, South Africa, June 9, 2022— IFC and global mining company Anglo American today signed a sustainability-linked loan agreement which is to be used to support community development in rural communities close to Anglo American's mining operations across South Africa.
The financing will help improve the quality of education for more than 73,000 students and promote job creation. The $100 million sustainability-linked loan is 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.
IFC and Anglo American have worked closely to ensure that a robust set of metrics and targets are documented. In this case, Anglo American has set itself targets under its Sustainable Mining Plan to support schools in its host communities to perform within the top 30 percent of state schools nationally and to create or support three offsite jobs for every on-site job at its sites by 2025.
To achieve its education target, Anglo American 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, supporting over 73,000 students in early childhood development centres, primary schools and secondary schools.
Anglo American will aim to achieve its livelihood target by providing 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.
"Our Sustainable Mining Plan has a set of ambitious global goals relating to delivering a healthy environment, creating thriving communities, and being recognized 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," said Stephen Pearce, Finance Director of Anglo American.
"Sustainability-linked financing is a powerful tool for mobilizing capital and to incentivize companies that seek to contribute to a more sustainable future. IFC's partnership with Anglo American will support quality education for early learners, strengthen human capital development, and boost small businesses in South Africa," said Kevin Njiraini, IFC's Director for Southern Africa and Nigeria.
Anglo American 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 this new loan.
This loan is part of a broader IFC engagement with Anglo American on local social development, including in Peru where IFC, Anglo American, and other partners are supporting regional development initiatives.
IFC—a member of the World Bank Group—is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2021, IFC committed a record $31.5 billion to private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity as economies grapple with the impacts of the COVID-19 pandemic. For more information, visit www.ifc.org.
About Anglo American
Anglo American is a leading global mining company and our products are the essential ingredients in almost every aspect of modern life. Our portfolio of world-class competitive operations, with a broad range of future development options, provides many of the future-enabling metals and minerals for a cleaner, greener, more sustainable world and that meet the fast growing every day demands of billions of consumers. With our people at the heart of our business, we use innovative practices and the latest technologies to discover new resources and to mine, process, move and market our products to our customers – safely and sustainably.
As a responsible producer of diamonds (through De Beers), copper, platinum group metals, premium quality iron ore and metallurgical coal for steelmaking, and nickel – with crop nutrients in development – we are committed to being carbon neutral across our operations by 2040. More broadly, our Sustainable Mining Plan commits us to a series of stretching goals to ensure we work towards a healthy environment, creating thriving communities and building trust as a corporate leader. We work together with our business partners and diverse stakeholders to unlock enduring value from precious natural resources for the benefit of the communities and countries in which we operate, for society as a whole, and for our shareholders. Anglo American is re-imagining mining to improve people's lives.