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Strategies & Market Trends : Market Gems:Stocks w/Strong Earnings and High Tech. Rank -- Ignore unavailable to you. Want to Upgrade?

To: lee kramer who wrote (97513)	5/14/2000 9:44:00 AM
From: puborectalis	Read Replies (1) \| Respond to of 120523

Mining Giants Set Up Internet Procurement Exchange LONDON (Reuters) - Fourteen of the world's largest mining and metals firms said on Sunday they were creating a single procurement marketplace on the Internet in a move that could cut the industry's annual $200 billion spending bill. The partnership brings together rival companies from Australia, the Americas, Europe and Africa, and includes heavyweights such as Alcoa Inc., Anglo American Plc., Rio Tinto Plc. and The Broken Hill Proprietary Co. Ltd. Backers will inject up to $100 million into the project, which will be prepared for an eventual initial public offering (IPO). The exchange, which is expected to start Net-based transactions by the end of the year, is the latest example of business-to-business (B2B) marketplaces springing up in many industries to improve efficiencies in complex supply chains. One industry source involved in the project said cost savings from online procurement were likely to total five to seven percent. Last month 14 leading oil and gas companies joined forces in a similar project designed to focus some $125 billion a year of procurement spending on a common Internet site. Online ordering of everything from trucks to chemicals should cut transaction costs, increase price transparency and allow companies to operate with smaller inventories. The founders of the mining exchange represent more than 60 percent of the market capitalization of the global mining and metals industry, and include the world's largest producers of aluminum, copper, gold, platinum and iron ore. The site, which aims to be independent and neutral, will be open to all industry producers and suppliers, and additional mining and metals companies are expected to participate. In 1999, the industry industry's total procurement spending was an estimated $200 billion. A chief executive for the cyber market will be appointed shortly and the venture is to bring in a technology partner to help run the run. The 14 backers of the procurement hub are: -- Alcan Aluminum 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 Limited -- Newmont Mining Corporation -- Noranda Inc. -- Phelps Dodge Corporation -- Rio Tinto Plc./Limited -- WMC Limited