News
Australian incumbent buys assets from mine network specialist CBO Telecommunications.
Telstra on Thursday formed a new division tasked with addressing the mining sector, after acquiring assets from CBO Telecommunications, which specialises in deploying networks in challenging environments.
Aptly-titled Telstra Mining Services, it will be part of Telstra Global Enterprise and Services.
"Telstra is committed to becoming a new driving force for mining in Australia by helping the industry transition to a digital future," said Martijn Blanken, group managing director of Telstra Global Enterprise and Services, in a statement.
Mining is one of Australia’s biggest sectors, but it has been shaken by plunging commodity prices. According to the Australian Bureau of Statistics (ABS), mining’s contribution to the country’s GDP contracted by 7.4% in 2014-2015.
"The decline in global commodity prices is largely driving a downturn in the resources sector and, as a consequence, sharpening the industry’s focus on reducing costs and maximising production," said David Keenan, head of Telstra Global Industries.
"Telstra Mining Services will deliver the technology solutions that makes this possible, such as high bandwidth networks, mobility solutions and software capabilities, through our own developments, strategic partnerships and in bespoke collaboration with customers.
The deal with CBO will see Telstra acquire its network design and consulting services assets. The transaction is expected to close by 30 June; financial terms were not disclosed.
The Australian incumbent has hired Jeannette McGill to run the new mining unit. She was previously head of technology and innovation at mining company AngloAmerican Platinum. It has also appointed Eric Nettleton, formerly of Rio Tinto, to develop new mining technology products.
"This is only the beginning as we will continue to deepen our capabilities to deliver tailored technology innovation to our mining customers, both in Australia and internationally," Keenan said.
