Fourteen of the world’s leading mining companies have joined forces to form an independent, global Internet-based marketplace for the procurement of materials and supplies.
The venture is designed to bring together producers and suppliers in more than 1,000 countries. Users will have unrivaled access to equipment and supplies, which will benefit both suppliers and buyers by streamlining transactions and improving inventory management. In 1999, procurement spending alone was estimated at US$200 billion.
Shareholders in the venture include Alcan Aluminum, Alcoa, Anglo American, Barrick Gold, Broken Hill Proprietary, Compania Nacional del cobre de Chile (Codelco), Companhia Vale do Rio Doce (CVRD), De Beers Consolidated Mines, Inco, Newmont Mining, Noranda, Phelps Dodge, Rio Tinto and WMC.
The companies represent 60% of market capitalization of the global mining and metals industry and are among the world’s largest producers of aluminum, coal, copper, gold, manganese, nickel, silver, industrial minerals and platinum group metals. Additional mining companies are expected to join.
The “virtual marketplace” will use a catalogue of products in multiple languages and allow users, regardless of size and location, to trade with a large pool of suppliers and buyers, both locally and worldwide.
A high level of security will be used to ensure the confidentiality of clients and companies on the web.
The 16 member companies have agreed to structure an interim management team in order to get the venture up and running. A chief executive officer will be appointed shortly, as will a technology partner.
No web site address has been announced for the online marketplace.
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