Newmont Taps SAP for Australian Operations
Newmont Mining, the second-largest gold producing mining firm in the world, will be installing a global SAP system in its Australian operations in the next two months.
The scheme is actually part of a two-year SAP rollout that the gold miner dubbed Project Pangaea which official started in October 2010. The mining firm said the project is almost at its tail-end.
Newmont started Project Pangaea to regulate its global operations on SAP ERP, noting this will create a foundation for a "global shared services strategy."
All of the miner's operations, except Indonesia, are included in this project with those at North America going live in April this year, and then its Peruvian operations in July, www.itnews.com.au said.
In a presentation made to SAP's Mining & Metals Forum in Germany, Newmont said the SAP rollout to the final three countries, including Australia, New Zealand and Ghana, has been scheduled this year at October and November.
However, there will be different schedules for a go-live in Australia and New Zealand. "It was scheduled close to quarter end," according to the presentation. The miner noted the timing revision was a result of the earlier lessons it learned from similar simultaneous go-live operations.
In September 2005, Newmont Mines migrated its Australia and New Zealand SAP applications to software from Brisbane-based Mincom following the merger of Newmont USA and Normandy Gold in Australia, which were Mincom and SAP user costumers, respectively.
Between shared services and Project Pangaea, Newmont hopes to save $35 to $40 million annually.
One of the project's benefits is that it will push consistent processes, data and reporting across Newmont's worldwide operations.