HIGH PROFILE
The signing of the landmark agreement between BME and MNK
mining explosives and blasting services company , with complete explosives business licenses . As an established ammonium nitrate manufacturer , it has an existing services base to leverage the complementary technology of BME . In its own right , BME is already a leading player in the African market for both surface and underground mines . Specifically for South Africa ’ s region , BME is the largest supplier of emulsion to the opencast mining sector .
BME ’ s bold move in Indonesia
South Africa-based blasting and explosive solutions specialist BME recently took another significant step in its globalisation strategy through the signing of a joint venture with a leading Indonesian player
The mining subsidiary of Omnia Holdings , BME , in March 2023 signed a Conditional Sale and Purchase of Shares Agreement with PT Multi Nitrotama Kimia ( MNK ), an Indonesian market leader in the provision of explosives and blasting services . The JV – called PT Kemitraan MNK BME – combines BME ’ s innovative technology , products , and solutions with MNK ’ s local networks , experience , and resources . The JV creates an integrated offering with an expanded suite of products and services for both surface and underground mines .
IM was able to catch up with BME to get some insight into this move and its experience to date in the Indonesian mining market .
Q BME recently made a major investment in Indonesia through a JV with MNK . Can you give some background to BME ' s involvement in the Indonesian blasting and explosives market to date ? A Indonesia has been an important success story in BME ’ s global expansion strategy . The company has been supplying explosive products and accessories into Indonesia for more than a decade . BME has partnered with MNK on a large mining project since 2019 .
Q Do you already have any manufacturing and strategic storage locations in the country , and are more planned in the future ? A The collaboration with MNK to date has led to BME commissioning its mobile manufacturing units ( MMUs ) and an emulsion plant in Indonesia . This was an exciting development , as these are the first to be commissioned by BME outside of Africa .
Q Why have you chosen to make this additional move now , and why have you opted for the JV route ? A BME has spent many years establishing its reputation in Indonesia , and this joint venture presents the optimal way to leverage BME ’ s innovative technology , products and solutions . Working with MNK ’ s local networks , experience , and resources , BME can contribute to the JV ’ s integrated offering – through BME ’ s expanded suite of products and services for both surface and underground mines . The JV gives BME faster access to market and greater diversification , while positioning the business well for the future as a major player in the growing Indonesian and Asian markets .
BME ’ s innovative AXXIS system is already in use at two mining sites in Indonesia
Q Indonesia is a huge market - with extensive open cast coal mining but also important copper
and gold mines both surface and underground . Do you see BME being able to serve all of these customers ? A An important aspect of the synergy in the JV is MNK ’ s position as Indonesia ’ s leading provider of
Q How does the market there have similarities to the African market for blasting and explosives plus what are the major differences ? A Among the market similarities is the drive towards world class standards and regulations which the respective governments in both regions are pursuing . Indonesia recognises this through hosting a good mining practices award , which BME won recently in the blasting services category .
Q Are the main customers their contractors , or owner operators or both ? A Actually it is both - out of 11 existing contracts , six are with mine owner operators and five are with mining contractors .
Q Is there an appetite in Indonesia for the latest technologies that you provide including electronic initiation and detonation - have these already been used and proven there ? A There is certainly an appetite for the latest blasting technologies , which BME has been satisfying through its sales of explosive products and accessories into Indonesia for over 10 years . Working with the customer base of the JV , BME expects to see even greater opportunity to introduce mines to its range of electronic detonation and digital technologies . BME has been supplying AXXIS to Indonesia since 2019 and we have two projects currently using the AXXIS system . The first one is supplying a top tier coal mine company and the second one is supplying the largest coal mining contractor . So , it is proven .
Q Aside from AXXIS what other technologies from BME do you think have the greatest potential there ? A In addition to the AXXIS electronic detonation system , there is considerable interest in the company ’ s Blast Alliance suite of digital solutions . This includes the BLASTMAP blast planning software for opencast and underground mines , the XPLOLOG blast hole and deck data logger and dashboard , and the Blasting Guide App for quick calculation of blast designs . Other aspects of BME ’ s technology include dual salt emulsion , mobile manufacturing units ( MMUs ) and emulsion plants for customer sites . IM
JUNE 2023 | International Mining 31