Nordgold completes deployment of SAP-based ERP solution through a joint project with BearingPoint

Leading gold mining company implements solution to harmonise core business and management processes globally.

Amsterdam, Netherlands, February 19, 2016 - Nordgold, an internationally diversified low-cost gold producer (“the Company”), has successfully completed the roll-out of a SAP-based enterprise resource planning (ERP) system with support from Severstal’s IT Department and management and technology consultancy, BearingPoint. The solution has been deployed across the Company’s ventures in Russia, Kazakhstan and West Africa.

Nordgold has a proven track record of delivering profitable growth through efficiency gains across production and management processes alongside the launching of low-cost and world-class mines. In 2012, the Company began roll out of Business System of Nordgold (“BSN”) with aim to establish best-in-class sustainable processes at its operating assets, ensuring they are as efficient, low cost, sustainable and, above all, as safe as possible. This new approach required introduction of a single corporate ERP system.

The Company selected SAP solutions to develop a platform to automate its management processes. The project team, comprised of Nordgold’s experts, members of Severstal’s IT Department and BearingPoint’s consultants, was tasked with designing a system based on Severstal’s standard solution and best practices tailored to the specific processes of Nordgold's international operations.

As a result of the Company’s global presence, with gold mining ventures involved in the project located in Russia, Kazakhstan, Burkina Faso and Guinea, standard solution were revised significantly. In addition to SAP ERP’s standard modules (i.e., CO, FI, MM, PP), the project included an SAP ERP Human Capital Management (HCM) solution, which has also been rolled out to locations in West Africa. SAP BW solution has been implemented for data consolidation and corporate reporting purposes and SAP MII system has been deployed to enable the integration with production accounting systems.

The project was successfully completed in June 2015 and the team has handed over the system to Severstal Excellency Center’s team for support and maintenance.

“Harmonizing business processes across Nordgold’s nine gold mines located in different countries around the world, and their automation and integration through SAP-based solutions required a significant effort and commitment by the Nordgold team of several thousand people. The successful implementation of a project of this size has enabled us to speed up the provision of reliable information on the status of business processes, required for timely management decision-making, and to improve the quality and speed of consolidated financial reporting at Nordgold. Cost accounting harmonization and enhanced capabilities to identify and assess the more efficient processes within the company to customize and implement them across other production sites will drive our cost optimization and cost-cutting efforts,” said Dmitry Guzeev, Nordgold’s Chief Financial Officer.

“This standardization effort has helped harmonize management and procurement processes across Nordgold’s locations. The use of corporate standards will enable future consolidation of service processes into shared service centers, which will help to improve their quality and achieve additional savings,” noted Sergey Tkachenko, Partner at BearingPoint.

“Nordgold was provided with a modern, SAP ERP-based resource management tool enabling performance monitoring and optimization, as well as control, giving us a significant competitive advantage in the gold mining sector. Greater process transparency and control has improved quality of equipment and procurement performance, reduced inventories and enhanced business continuity through effective management of emergency reserves and buffer inventories,” said Oleg Maksimov, Nordgold’s Deputy COO and Project Office Director.


About Nordgold

Nordgold is an internationally diversified low-cost gold producer established in 2007 and listed on LSE. The company has expanded rapidly through carefully targeted acquisitions and organic growth, achieving a rate of growth unmatched in the industry during that period. Nordgold’s gold production increased to 950 thousand ounces from 21 thousand ounces in 2007.

The company operates nine mines and a number of development projects in Russia, Kazakhstan, Burkina Faso, Guinea, French Guiana and Canada. Nordgold employs over 8000 workers.

www.nordgold.com

About Severstal

Severstal is one of the world’s leading vertically integrated steel and steel related mining companies. The company has assets in Russia, Belarus, Ukraine, Latvia, Poland, Italy, and Liberia.

Severstal’s IT Department implements projects based on SAP solutions.

www.severstal.com

About BearingPoint

BearingPoint consultants understand that the world of business changes constantly and that the resulting complexities demand intelligent and adaptive solutions. Our clients, whether in commercial or financial industries or in government, experience real results when they work with us. We combine industry, operational and technology skills with relevant proprietary and other assets in order to tailor solutions for each client’s individual challenges. This adaptive approach is at the heart of our culture and has led to long-standing relationships with many of the world’s leading companies and organizations. Our global consulting network of 9,700 people serves clients in more than 70 countries and engages with them for measurable results and long-lasting success.

www.bearingpoint.com

For further information, please contact:

BearingPoint
Alexander Bock
Manager Communications
Tel: +49 89 540338029
Twitter: @BearingPoint
alexander.bock@bearingpoint.com
Nordgold
Olga Ulyeva
Head of Media Relations
Tel: +7 495 644 4473
olga.ulyeva@nordgold.com
Severstal
Dmitrii Mazhorov
Senior manager, PR department Communications & IR
Tel: +7 495 926 77 66
dmitrii.mazhorov@severstal.com
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