Release Time IMMEDIATE
Date 15 May 2000
Number 43/00
FOURTEEN LEADING MINING AND METALS COMPANIES FORM ONLINE GLOBAL PROCUREMENT
MARKETPLACE
* Independent, Neutral Market To Be Open To All Industry Producers & Suppliers
* Will Provide Unrivaled Access To Industry's approximately US$200 Billion
Global Procurement Market
* Significant Benefits To Suppliers and Buyers From More Transparent Supply
Chain
* Marketplace Efficiencies To Result In Lower Transaction Costs, Reduced
Inventories, Greater Standardization, Increased Automated Ordering
May 14, 2000 -- Fourteen of the world's leading mining and metals companies
today announced the creation of 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 will provide unrivaled access to procurement sources worldwide. It is
anticipated that the expansive, open and neutral platform will transform the
procurement practices of the mining and metals industry and bring significant
benefits to both suppliers and buyers through standardization, transparency,
streamlined transaction processes and improved inventory management.
The founding shareholders of the mining and metals procurement site include
Alcan Aluminium Limited, Alcoa Inc., Anglo American plc, Barrick Gold Corp,
The Broken Hill Proprietary Company Limited (BHP), Compania Nacional del
Cobre de Chile (CODELCO), Companhia Vale do Rio Doce (CVRD), De Beers
Consolidated Mines Ltd., Inco Ltd., Newmont Mining Corporation, Noranda Inc.,
Phelps Dodge Corporation, Rio Tinto, WMC Limited. The companies represent in
excess of 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. Additional mining and metals companies are expected
to participate in the market place. In 1999, the estimated procurement
spending of the industry was approximately US$200 billion.
The new virtual marketplace will utilize a common catalogue 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 both
locally and around the world.
The marketplace is intended to help companies satisfy their buying
requirements in a more efficient and streamlined way and bring benefits to the
wide range of industry suppliers worldwide in reaching an increased universe
of customers. At the same time the market place will preserve the
confidentiality of information and relationships between the trading partners.
Participants have agreed to the structure of an interim management team in
order to fast track marketplace implementation of the venture. A CEO will be
appointed shortly and a technology partner will be selected. The venture will
also develop a comprehensive supplier and buyer adoption program. It is
expected that internet-based transactions will commence by year-end.
Morgan Stanley Dean Witter has acted as sole advisors and facilitators to the
marketplace.
* * * *
Contact:
MEDIA RELATIONS: Mandy Frostick
Manager Media Relations
Ph: +61 3 9609 4157
Mob: +61 419 546 245
Michael Buzzard
Senior Media Relations Advisor
Ph: +61 3 9609 3709
Mob: + 61 417 914 103
INVESTOR RELATIONS: Robert Porter
Vice President Investor Relations
Ph: +61 3 9609 3540
Mob: +61 419 587 456
Pierre Hirsch
BHP Investor Relations - San Francisco
Tel: +1 415 774 2030
___________________________________________________________________________
The Broken Hill Proprietary Company Limited A C N 004 028 077
BHP Tower 600 Bourke Street Melbourne Vic 3000
(GPO Box 86A Melbourne VIC 3001 Australia)
Telephone 61 3 9609 3333 Facsimile 61 3 9609 3015
