Customer Story

Exxaro Resources

Exxaro Resources, a JSE-listed diversified mining company, has adopted end-to-end IT Financial Management (ITFM) solutions from MagicOrange. This project aims to enhance cost transparency and operational efficiency across Exxaro’s extensive operations.
By: MagicOrange Customer Success
Published on July 11, 2024
Read time: 3 mins
Article


Exxaro Resources is a large South African-based diversified resources group with interests in the coal, titanium dioxide (TiO2), ferrous, and energy markets. The company operates facilities and offices across Africa, Asia, Europe, and Australia, making it a significant player in the global mining industry.

Why MagicOrange Was Chosen

MagicOrange was selected for this project for several reasons, such as their competitive pricing, excellent track record among large international clients, local presence, and the quality of support provided during the sales cycle. “We are delighted that Exxaro chose our platform to drive transparency and simplicity into its costing processes,” comments Greg Guye, CEO at MagicOrange. This project marks MagicOrange’s first foray into the mining sector, with a significant opportunity for effective cost management and profitability.

 

Challenges Faced by Exxaro

Exxaro faced several challenges with their previous cost allocation processes:

  • Complex Cost Allocation: Allocating shared IT costs to individual mines was tedious and labor-intensive, involving complex spreadsheets and manual journals.

 

 

  • Need for Comprehensive ITFM Solution: Exxaro required a solution to manage the Total Cost of Ownership (TCO) of IT services effectively and to demonstrate the value of IT within the organization.

“We have a clear need for an ITFM solution and look forward to realizing significant benefits on a number of fronts”

Desmond Govender
CIO, Exxaro Resources

 

 

 

The Solution: MagicOrange ITFM Implementation

MagicOrange provided a comprehensive ITFM solution tailored to Exxaro’s needs. This solution includes mechanisms for managing the TCO of IT services and supports improved budgeting, accounting, and charging disciplines within Exxaro’s Information Management Department. The solution is designed to streamline processes and provide greater transparency into cost allocations.

 

Benefits of the ITFM Solution

The implementation of MagicOrange’s ITFM solution has delivered numerous benefits to Exxaro:

  • Increased Visibility – Individual business units now have full visibility into the IT resources they use and the associated costs, enabling better cost control.

 

  • Automated Processes – The solution automates many previously manual tasks, speeding up processes and freeing resources from low-level invoice-splitting tasks.

 

  • Improved Financial Efficiency – The automated General Ledger and detailed cost tracking support better financial decision-making and operational efficiency.

 

  • Enhanced Decision-Making – The ability to run ‘what if’ scenarios helps Exxaro make strategic decisions and plan for the future.

 

Implementation Process

The solution will be implemented at Exxaro over three months, after which the organization will run its ITFM processes independently. MagicOrange’s team of experts will provide ongoing support as needed, ensuring the solution continues to deliver value.

The successful implementation of MagicOrange’s ITFM solution is set to transform Exxaro’s cost management processes, enhancing transparency, efficiency, and decision-making capabilities. This project underscores the potential for ITFM solutions in the mining sector and paves the way for future advancements.

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