SYDNEY, June 23 (Reuters) - Australia's No. 1 telecommunications firm Telstra Corp Ltd TLS.AX has bought a mining technology company for an undisclosed sum, looking to tap the resource sector's appetite for cost-cutting in the face of slumping commodity prices.
Markets for everything from oil to iron ore have collapsed from record highs a few years ago due to swelling supply and a slowing economy in major consumer China, prompting mining companies to adopt new technologies which automate processes and boost production. decision by Australia's seventh-largest company to invest in resources automation will likely spur new interest in the sector, while offering miners new ways to save money.
Telstra in a statement on Thursday said it had bought resources-focused wireless technology company CBO Telecommunications Pty Ltd and hired the former chief automation researcher at mining giant Rio Tinto (LON:RIO) Ltd RIO.AX , Eric Nettleton, as the basis of a new mining technology unit.
A Telstra spokesman declined to give the value of the purchase.
"This downturn has created a once in a lifetime shift, where miners are looking to technology innovation," Telstra's head of global industries David Keenan said in the statement.
The company also hired a former head of technology and innovation at South Africa-listed Anglo American (LON:AAL) Platinum Ltd AMSJ.J , Jeannette McGill.