Fourteen mining and metals companies have created an independent, global Internet-based procurement marketplace.
The venture will create a platform to bring together mining and metals producers and suppliers in more than 100 countries and intends to provide unrivaled access to procurement sources worldwide.
The founding shareholders are Alcan Aluminium Ltd., Alcoa Inc., Anglo American Plc., Barrick Gold Corp., Broken Hill Proprietary Co. Ltd., Compania Nacional del Cobre de Chile (Codelco), Companhia Vale do Rio Doce (CVRD), De Beers Consolidated Mines Ltd., Inco Ltd., Newmont Mining Corp., Noranda Inc., Phelps Dodge Corp., Rio Tinto and WWIC Ltd.
These companies represent more than 60 percent of the market capitalization of the global mining and metals industry and are among the world's largest producers of aluminum, coal, copper, gold, iron ore, manganese, nickel, silver, zinc, industrial minerals and platinum group metals.
Other mining and metals companies are expected to participate in the online marketplace. The estimated procurement spending of the industry last year was approximately $200 billion.
The founders expect that the open and neutral platform will transform the procurement practices of the mining and metals industry and bring benefits to both suppliers and buyers through standardization, transparency, streamlined transaction processes and improved inventory management.
The new virtual marketplace will use a common catalog of products in multiple languages and will allow participants, regardless of size and location, to access and trade with a large pool of suppliers and buyers locally and abroad. The exchange will preserve the confidentiality of information and relationships between the trading partners.
Participants have agreed to structure an interim management team in order to fast-track marketplace implementation of the venture. A CEO and a technology partner have yet to be chosen.
The venture will also develop a comprehensive supplier and buyer adoption program. It is expected that Internet-based transactions will commence by year's end.
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