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Mining Shared services

Deloitte Mining Shared Services

Challenges mining companies face
The mining sector is no stranger to boom and bust cycles. The global financial crisis has hit harder than most mining companies anticipated. Many companies now find themselves in a position of increasing production costs and high capital commitments, with lower commodity prices. As a result, cost management has been set as a top priority – not only as a way to offset softening commodity prices, but also in response to the ongoing high costs for development, materials and labour.

How does the Deloitte solution address the business issue?
The concept of Deloitte Mining Shared Services is to move all back office services to an integrated Deloitte environment. This will include:

  • A pre-built ERP mining solution configured in either SAP or Sage X3
  • Maintenance contract to continually enhance and maintain this solution and manage cost of ownership
  • Financial transactional out/co-sourcing for finance, payroll, HR and supply chain related processes
  • Information technology outsourcing
  • Tax, grant and incentive optimization services

In most mining companies the said activities are carried out from a number of different locations, performing the work in a variety of ways and using a range of systems.
This unique service offering allows companies to focus on their core business while the non-core processes can be managed under a single service level agreement with Deloitte.

Benefits to your organisation
There are multiple benefits for mining companies and their back office staff in partnering with Deloitte:

  • Take advantage of economies of scale and thereby reduce and control operating costs
  • Finance options are available for the capital investment component of this service offering
  • Reduce time spent on non-core functions
  • Improve process efficiencies
  • Improve business focus.
  • Free valuable management resources for other purposes
  • Provide increased opportunities for existing staff
  • Gain access to best-in-class global practices

Contact
Johan Theron
Tel: +27 (0)12 482 0000
Email: jtheron@deloitte.co.za

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