On-line procurer aims for 1 billion

Quadrem, the mining industry’s largest on-line procurement service, expects to rack up US$1 billion in transactions this year.

Moreover, the company expects the value of transactions to escalate to US$15 billion within three years.

Quadrem was formed in October of last year to facilitate mining procurement. The total procurement market is thought to be worth about US$200 billion annually. Quadrem says its forecast represents about 0.5% of the world market.

Transactions on Quadrem started with South African mining companies Anglo Platinum, AngloGold and De Beers Consolidated Mines. The company expects mining companies in Australia and South America to follow suit.

Quadrem’s slow startup was due largely to the fact that three months were required to modify the computer systems of companies.

Quadrem has 40 suppliers in Australia and more than 250 worldwide.