Xstrata Copper And Xstrata Zinc Select SolveIT Software For Pit-To-Port Supply Chain Optimisation

SolveIT Software Pty Ltd., a leading provider of enterprise software for supply & demand optimisation and predictive modelling, announced recently that it has signed a contract with both Xstrata Copper and Xstrata Zinc for the deployment of SolveIT Software's Advanced Planning & Scheduling (APS) system and Supply Chain Network Optimiser (SCNO). The applications will be configured for optimising Xstrata's Copper and Zinc pit-to-port supply chain, and will incorporate advanced features invented by SolveIT Software, such as decision visibility, dynamic trade-off analysis, and global optimisation.

Once deployed, SolveIT Software's Advanced Planning & Scheduling (APS) system and Supply Chain Network Optimiser (SCNO) will enable a "one view" of Xstrata's Copper and Zinc pit-to-port supply chain, thereby eliminating the need for multiple systems, spreadsheets and reports. The applications will produce a consolidated dashboard view of relevant information, and enable "what-if" analysis across the end-to-end supply chain to understand the impact of decisions on upstream and downstream business units, customers, and stakeholders.

"We recognize the world-best optimisation science upon which SolveIT Software's planning & scheduling applications are based, along with the deep domain knowledge they bring to the table in a multitude of complex, vertically integrated, push/pull supply chains," said Mr. Peter Bates, CIO, Xstrata Copper. "For these reasons, Xstrata Copper and Xstrata Zinc have selected SolveIT Software for optimising the end-to-end copper, zinc, lead, and magnetite supply chains in Australia, from mine planning all the way through to ship loading.'"

The multi-million dollar project follows a review of the Xstrata Copper and Xstrata Zinc's supply chain, carried out by SolveIT Software, that focused on mapping the current "AS IS" and defining future "TO BE" state of the business and developing a phased roadmap for reaching the "TO BE" state. SolveIT Software's Advanced Planning & Scheduling (APS) system and Supply Chain Network Optimiser (SCNO) will interface with the existing Xstrata system used by Copper and Zinc, including Schneider Electric's AMPLA system, which is being deployed in parallel to the SolveIT Software project.

Business benefits sought from the project include increases in operational efficiency and supply chain throughput, and decreases in cost and the number of spreadsheets currently used to manage the supply chain. Additional benefits will come through better use of available capacity, reduction of scheduling errors, less product loss due to optimised sequencing, and less time spent by planning staff generating plans and more time spent analysing them and value-adding to the operation.

About Xstrata Copper
Xstrata Copper is the fourth largest global copper producer with attributable mined production in 2010 of 913,500 tonnes of copper in cathodes and concentrates. The company is also one of the world's largest producers of smelter and refined copper, including from third party materials.

Headquartered in Brisbane, Xstrata Copper is one of the commodity business units within the major global diversified mining group Xstrata plc. Its mining and metallurgical operations and development projects span eight countries: Argentina, Australia, Canada, Chile, Peru, the Philippines, Papua New Guinea and the USA. Its operations and projects are administered through a regional divisional management structure, which ensures that critical decisions are taken close to the related businesses. It also has a recycling business (Xstrata Recycling) with plants in the United States and offices in Canada and Asia.

About Xstrata Zinc
Headquartered in Madrid, Spain, Xstrata Zinc is one of the world's largest producers of zinc and one of the commodity business units within the major global diversified mining group Xstrata plc. Xstrata's zinc and lead operations and exploration projects are located in Australia, Canada, Germany, Peru, Spain and the United Kingdom. Xstrata Zinc's operations in Spain comprise the San Juan de Nieva zinc smelter and the Arnao zinc semis plant in Asturias, and the Hinojedo roasting plant in Cantabria.

In Australia, operations comprise: the Mount Isa, George Fisher underground, Handlebar Hill open cut and Black Star open cut zinc-lead mines, zinc-lead concentrator, lead smelter and Bowen Coke Works in north Queensland; the McArthur River open pit zinc-lead mine, processing and loading facility in the Northern Territory; and the Lady Loretta zinc lead deposit in north-west Queensland.

In Canada, operations and exploration projects include the Brunswick zinc-lead mine and lead smelter in New Brunswick; 25% of the CEZ zinc smelter near Montreal; and the Perseverance zinc deposit in Quebec.

Xstrata Zinc also operates the Nordenham zinc smelter in northern Germany; the Northfleet lead refinery in the United Kingdom; and owns 33.75% of the Antamina mine in Peru.

Around half of all zinc currently consumed is used for galvanizing steel, which is an environmentally friendly method of protecting steel against corrosion. Zinc also finds application in the manufacture of die-cast alloys, brass and the production of zinc oxides and chemicals.

About Xstrata Mount Isa Mines
Xstrata Mount Isa Mines is a world class mining operation and a significant asset within the Xstrata global portfolio. Xstrata Mount Isa Mines is operated jointly by the Xstrata Copper and Xstrata Zinc business units.

Xstrata Mount Isa Mines processes and mines copper and zinc ore from the Mount Isa, Ernest Henry, George Fisher, Black Star, Handlebar Hill, Enterprise, and X41 ore bodies. Mining is both underground and open-cut. Products marketed by the company for export are: Copper Cathode, Copper Concentrate, Zinc Concentrate, Crude Lead and Tankhouse Slimes (a co-product of copper refining with significant copper, gold and silver content).

With a workforce of over 4,000 employees and contractors, Xstrata Mount Isa Mines is a significant contributor to the local economy, contributing nearly $2 billion to the local economy in 2009. In 2009-10 Xstrata Mount Isa Mines exported more than $2.3 billion worth of product, up 22 per cent on last year, and accounting for more than three quarters of total sales.

The company's structure recognises a fully integrated marketing approach blending global marketing intelligence with local logistics, shipping, port and commercial expertise. Commercial and sales staff are located in Townsville and Brisbane.

About SolveIT Software Pty Ltd.
SolveIT Software Pty Ltd is an Australian company specialising in supply & demand optimisation and predictive modelling. Founded upon the leading research of several world-renowned computer scientists and research organisations, we offer enterprise software for advanced planning & scheduling, supply chain network optimisation, demand planning & forecasting, and predictive modelling. Our software applications are based on proprietary platforms for advanced optimisation, prediction, and what-if analysis, and can optimise production and supply chain activities on both a local (plant) and global (network) level. Customers include Rio Tinto, Viterra, Xstrata, BHP Billiton, Visy Industries, Pernod Ricard Pacific, Amcor, Incitec Pivot, ETSA Utilities, ElectraNet, Foster's Group, BMA Coal, PFD Food Services, Wilson Transformer Company, Liquor Marketing Group, Dentsu Corporation, and the Australian Defense Science and Technology Organisation (DSTO). For more information about SolveIT Software, please visit www.SolveITSoftware.com

SOURCE: SolveIT Software Pty Ltd