Miner inks $20m outsourcing deal

Diversified mining group Xstrata Queensland has entered a $20 million deal to outsource its IT infrastructure, applications, LAN and e-mail, aiming to make the management of its IT services more efficient and cost-effective.

The London and New York stock exchange-listed metal ore miner has more than 9000 employees and is made up of the Queensland operations of former Australian mining company MIM, which it bought out in June last year.

Xstrata has contracted the outsourcing work to CSC Australia for three years during which the IT services company will manage the miner's IT infrastructure and applications, such as server management, application support including functional and technical support, desktops and laptops, and manage its WAN (wide area network) and e-mail system, company officals said. The contract also covers helpdesk management and tracking and managing other IT issues through CSC's Sydney-based global management centre.

Xstrata Copper general manager for administration and services, John Coldham, said the aim in outsourcing Xstrata's IT services and support is to generate ongoing value for the company while developing its current IT strategy and architecture.

The agreement covers Xstrata's worldwide head office in Brisbane and its copper mines and mineral processing plants at Mount Isa and Townsville. Xstrata has also contracted application support services for its coal division's Brisbane site, its Queensland coking and thermal coal operations in Oakey Creek, and the company's Newlands Collinsville Abbot Point project.

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