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Anglo American mining IT overhaul in £3.2bn De Beers takeover

Procurement, asset and knowledge management are key areas

Anglo American has said optimising its procurement, asset management, knowledge systems and shared services will be vital in making the most from its $5.1 billion (£3.2 billion) takeover of De Beers, announced on Friday.

The metal and precious stones mining firm is taking an 85 percent stake in diamond business De Beers, a move that Anglo American chief executive Cynthia Caroll said would give the company "highly attractive long term supply and demand fundamentals".

In a presentation to investors, Anglo American said simplifying systems and processes was a key part of making the takeover a success.

Both Anglo American and De Beers are extensive SAP users. Anglo American uses SAP enterprise resource planning and SAP Netweaver business intelligence. De Beers also uses SAP, as well as the vendor's Manufacturing Integration and Intelligence application.

Procurement was vital to the merger's success, Anglo American said, and the company will structure a global supply chain, and implement system improvements understood to be around the SAP systems. The company will also work to improve asset management processes, systems and best practice.

Knowledge sharing will also form a major part of efforts, with project review, mine planning and exploration knowledge leading the way.

Carroll said she believed "Anglo American's scale, technical, operational and exploration expertise, and financial resources" would help it expand De Beers' business.

Crucially, Anglo American is targeting centralised shared services, with all corporate functions playing a part. It is understood that human resources management will be an initial focus.

Photo: Steve Jurvetson

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