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HOW WE CHOOSE

A closer look at what we expect from potential entrepreneurs and suppliers

Our Selection Process

We are looking for potential entrepreneurs and suppliers that can deliver results that meet our objectives and targets. Here’s what our supplier sustainability engagement selection process looks like for example: 

We start off the process with self-assessments, where suppliers are expected to share more information about themselves. The data they supply is then evaluated and compared to standards set out by our sustainability engagement code. 

 

Suppliers who meet these standards will receive recognition. Those who don’t however, will be required to provide documentation that outlines their plan of action to rectify their shortfalls.

Diagram of the Exxaro selection process

Preferential Procurement Interventions

  • Exxaro shall award contracts on fair and equitable basis, whilst also promoting affirmative procurement from small business in operation regions, women, or socially or economically disadvantaged individuals.
  • Existing suppliers are encouraged, where appropriate, to form partnerships with Black Owned (BO) and Black Women Owned (BWO) companies, which give the latter access to the latest skills and technologies.
  • The tender evaluation scoring system will include 15% weighting on B-BBEE.
  • Dedicated resources will be allocated in attaining BBEEE certification from suppliers and the proportions of participation will be monitored and improved.
  • All bids for new contracts shall companied by B-BBEE and Localisation Plan that will account for 10% scoring.
  • Expired BBEEE certificated will be followed-up with suppliers in an attempt to get renewed certificates. Exxaro will collaborate with other mining houses to develop a shared database of minority suppliers.
  • Sub-divide or set aside contract packages where appropriate, to maximize BO and BWO companies participation, subject to sound commercial principles and operational / project requirements.

Supplier Development Interventions

  • Information on purchasing procedures will be provided in special publications designed to assist in learning how to do business with the Exxaro
  • Small businesses will be supported financially in the form of grants, expansion and order bridging loans providing capital and collateral, providing infrastructure or supporting operations in Exxaro operating areas.
  • Exxaro will actively permit early payments to help beneficiary entities. Special internal arrangements are made with respect to payment of B-BBEE companies, particularly QSEs and EMEs, where payments shall be no later than15 days after date of invoice or delivery.
  • Formal and informal training and mentorship of small B-BBEE businesses by using internal resources, capabilities in larger established supplier or the services of a third party service provider.

Enterprise Development Interventions

  • Information on accessing information on enterprise development opportunities will be made available on the website to assist potential entrepreneurs on how to apply.
  • Potential entrepreneurs will be screened for possible financial support or training and development