Case Study: Anglo American
Quantifying the safety and sustainable development components of vendor due diligence to support the client’s multiple divestment processes
Anglo American is one of the world’s largest diversified mining companies. In October 2009, the company announced a focusing of its strategy onto its core mining businesses of platinum, diamonds, copper, nickel, coal (thermal and metallurgical) and iron ore. Businesses that did not fall within that portfolio were identified for divestment. A comprehensive account of the environmental, health, safety and social (EHSS) risks was undertaken at each of the operations identified for divestment and ERM was asked to undertake the safety and sustainable development components of Anglo American’s due diligence assessment.
ERM assisted Anglo American by quantifying their EHSS risks at sites in Africa, Europe, Australia, and Latin and North America. Coordinated through the offices in South Africa, our teams located around the world liaised with Anglo American’s lawyers, accountants and operational advisors, translating the assessment into actual costs, thereby ensuring an accurate fiscal assessment.
ERM’s technically vigorous, multidisciplinary approach focused on the variables that were unique to Anglo American, presenting the information in a concise, timely fashion.
Benefits and Value
ERM’s international expertise and our ability to execute technically complex projects allowed Anglo American to meet its legal and regulatory requirements expeditiously.
Our streamlined project management and cross-continental intra-office collaboration ensured clear communication, while our centralised status reports enabled Anglo American to maintain transparency throughout each phase of their negotiation cycle.
In addition, our experience with multinational corporations and our extensive global footprint facilitated Anglo American’s strategic alignment with its overall business objectives.