Tag Archives: AECI Mining

AECI aims for top three integrated mining explosives and chemicals solutions provider status by 2030

Automation, Explosives and blasting, Mining equipment, Mining services, Precious metals, , , , , ,

Ahead of AECI’s 100th anniversary, the South Africa-based company has announced that it aims to double the profitability of its core mining and chemicals business by 2026 and to become a global top three integrated mining explosives and chemicals solutions provider by 2030.

These ambitions were laid out at a recent Capital Market Day, where AECI Chief Executive, Holger Riemensperger, announced the company’s revised strategy, which aims to extract value from its underlying operations.

Riemensperger said: “AECI is more than a business. It is a South African institution. At our core, we enable safe mining operations. While some synergies exist across our diversified industrial group, other business units within the portfolio have no synergies. Those underperforming units will be better served under different ownership. The changes we are making take into consideration several factors, including the external environment. They are aimed at ensuring that as AECI reaches its centennial anniversary in 2024, it is better positioned to navigate the changing environment and positioned for strong growth in the future.”

AECI’s strategic update follows a comprehensive review of the business’ operations in which the board and management identified the business units that are central to the sustainable and profitable growth of AECI, the company said. The strategy is premised on building on the group’s solid foundation and ensuring that it is structured in a manner that enables it to unlock value in the near term.

A core driving force of the strategy is to deliver operational and executional excellence through focusing on AECI’s core businesses and existing strengths while ensuring a disciplined approach to capital allocation and execution.

The AECI of the future, the company says, will see the group focus on its core mining and chemicals capability and divest out of non-core businesses.

AECI Mining will remain the group’s main growth focus. The business will look towards growth in Asia-Pacific, South America and North America as it drives its ambition to be top three on a global scale by 2030. AECI Chemicals will be re-organised and repositioned to enhance its cash generation capabilities through prioritising high-margin products and services and ultimately support the growth of AECI’s Mining division. The remaining businesses – Much Asphalt, Animal Health, Schrim, Sans Fibers and Beverage – which are not core to the identified growth levers will be exited out of in an orderly manner and over a period of time, the company said.

The group management structure has also been adjusted to reflect the changes in the business and to drive empowerment, accountability and quick decision making.

Riemensperger concluded: “At AECI, we stand together with a shared vision of a better world. We recognise that to secure our place for the next 100 years, we must embrace change, progress our strategy to seize new opportunities, and navigate market shifts with agility and profitability. I believe that the changes that we are making will be net positive for the business and the unwavering focus on operational and functional excellence will act as a catalyst for further innovation and profitable growth, and will unlock value for all of AECI’s stakeholders.”

AECI Mining expands Latin America explosives reach with Dinaser acquisition

Explosives and blasting, Mining mergers and acquisitions, Mining services, , , , , ,

AECI Mining says it has concluded the ZAR45 million ($2.4 million) acquisition of Dinaser Industria, an explosives business in Brazil.

The acquisition, executed through local entity AECI Mining Produtos Quimicos Ltda, includes 100% ownership of Dinaser’s explosives distribution and storage facilities as well as operating licences in the mining states of Minas Gerais and Bahia.

Holger Riemensperger, AECI Group Chief Executive, said: “This acquisition is in line with AECI’s strategy to continue expanding its already extensive footprint in the global mining sector. It builds on our existing reach in Brazil where we already own and operate a bulk emulsion and packaged explosives manufacturing plant, in the state of São Paulo, and have also seen good growth in the South American metallurgical extraction chemicals market.”

Mark Kathan, AECI Mining CEO, added: “Dinaser currently serves mainly the Brazilian construction and civil blasting industry. With our world-class products and know-how in both underground and surface mining, as well as our longstanding relationships with global customers, the opportunities to grow the business are significant.”

PT Kaltim Prima Coal feels the effects of AECI IntelliShot electronic blasting initiation system

Explosives and blasting, Mine operation news, Mineral project development, Mining equipment, Mining services, , , , , , , , , , , , ,

Having previously relied on conventional non-electric initiation systems, Indonesia-based PT Kaltim Prima Coal (KPC) has turned to AECI Mining Explosives’ IntelliShot® electronic blasting initiation system to improve the safety and efficiency of its operations.

Located close to Sangatta and Bengalon, East Kalimantan, Indonesia, KPC operates one of the largest open-pit mines in the world with coal resources of 9,275 Mt. The mine employs load and haul operations within its numerous pits, which are managed by two mining divisions: Mining Operation Division (MOD) and Contract Mining Division (CMD).

KPC commenced with coal production in 1992 and today moves approximately 500 million bank cubic metres of overburden per year, which allows the production of 60 Mt of coal. About 80% of the overburden requires drilling and blasting to enable efficient excavation, AECI says.

The mine has traditionally used conventional non-electric initiation within its CMD area, where AECI Mining Explosives Indonesia (AECI Indonesia) is contracted as the blasting services provider. This method required a lead-in-line to be run from the blast location to the firing position. In 2017, this method of initiation consumed approximately 650 m of lead-in-line per blast location, according to AECI.

High daily production targets set by KPC require multiple locations from where blasts could be initiated safely.

“Whilst this is possible within the strict safety parameters set by the mine, it sometimes requires some clever footwork, especially related to moving expensive capital equipment out of harm’s way,” AECI says. “This cumbersome method isn’t always the most efficient and often result in a loss of production time.”

AECI Indonesia, as the incumbent blasting services provider for KPC CMD since 2009, suggested IntelliShot, the company’s advanced electronic blasting initiation system.

IntelliShot has the capability to initiate one or more initiating systems wirelessly, known as remote firing. This application has the ability to generate much needed efficiencies by only using a short length of harness wire as opposed to the cost of a full lead-in-line when non-electric blast initiation is applied in the same application, the company says.

“Any new application of technology at the mine requires careful planning and demonstration of the ability to safely maintain improvement of these parameters,” it says. “The AECI Indonesia team embarked on a carefully controlled trial to test the applicability of the system and to ensure that KPC gets the full benefits.”

In addition to saving on costly lead-in lines, remote firing through the IntelliShot system offers additional safety benefits such as an advanced security system, the possibility to easily initiate the blast at larger and safer distances, allowance for the blaster to fire from locations that give greater visual security of the blast area during firing, and eliminating potential slap, snap and shoot that is possible with shock tube.

The introduction of remote firing at KPC was performed as a project and carried out in stages in the CMD area of KPC. Focused key performance indicator (KPI) targets agreed by the project team were carefully monitored on a daily basis to ensure the best possible outcome.

The project was conducted in the three CMD contractor pit areas at Sangatta and Bengalon under the management of KPC drill and blast department. AECI Indonesia successfully delivered multiple events of remote firing blasting in all areas. The team also complied with all safety and efficiency KPIs, AECI says.

The average usage of harness wire per remote firing event was around 100 m, compared with 650 m per blast of lead-in-line used in conventional blast initiation and has reduced the cost of blast initiation in KPC CMD by over 50%, AECI claims.

Yuli Prihartono, KPC Drill & Blast Manager, says: “Throughout the trial project of remote firing at CMD pits, AECI Mining Explosives has demonstrated its capability to deliver safe and efficient project to world class operations. Remote firing has successfully delivered quantifiable cost benefits for KPC. We expect AECI Mining Explosives to expand this initiative by introducing remote firing to all blast locations at CMD KPC.”