Tag Archives: Explosives

Omnia Holdings’ mining business underpins improved financial results

Omnia Holdings boosted both revenue and profit in its six-month reporting period ending September 30, 2024, with sustained robust growth in its mining segment being a key driver of this positive momentum.

The group reported a 5% year-on-year boost in revenue to R10.9 billion ($614 million) in the six-month period, alongside a 17% improvement in operating profit to R802 million.

On mining specifically – which, for Omnia, entails its BME business and the explosives, related accessories and blasting services offering – the company said: “The mining segment continued to demonstrate strong growth and robust performance. This growth was achieved through a combination of new and extended contracts, increased ammonia derivative sales, and new contract wins. Revenue increased by 15% to R4.7 billion while operating profit grew by 18% to R535 million. The segment effectively navigated global macroeconomic challenges and supply chain constraints to ensure uninterrupted supply to customers.”

The growth outlook for the group remains positive with solid traction gained in the reporting period, it noted.

The construction of an additional ammonium nitrate storage in Sasolburg will double storage capacity, further increasing supply chain flexibility and enabling consistent supply to customers.

The mining segment increased its momentum in its expansion efforts. Contract extensions and organic growth in the Southern African Development Community (SADC) region, as well as new contracts in Namibia, enhanced volumes in this core market.

In Indonesia three new contracts were successfully secured, signalling further growth in the region. While, in Canada, BME commissioned its non-electronic detonator manufacturing facility and the electric detonator manufacturing production line is due to be commissioned in the September quarter of 2025.

In the company’s 2026 financial year to September 30, 2026, BME in partnership with Hypex Bio, is set to launch a first of its kind nitrate free explosives to the Canadian market.

In 2023, Omnia announced a strategic partnership with Sweden-based Hypex Bio Explosives Technology and the acquisition of a minority equity stake in the company, looking to bring Hypex Bio’s ground-breaking emulsion, using hydrogen peroxide, offering to its customers.

In Australia, BME has commenced the building of its largest Mobile Manufacturing Units (MMU) with the first of these units expected to arrive towards the end of the 2025 financial year. Additionally, cold commissioning of Western Australia’s first electronic detonator plant has begun with production anticipated in the September quarter of 2025.

Orica setting digital groundwork to open up new mining frontiers

The integration of a digital backbone into the explosives, blasting and related processes will continue to result in miners accessing new deposits and potentially developing new mining methods, Orica’s Angus Melbourne and Rajkumar Mathiravedu told IM at last month’s MINExpo 2024 in Las Vegas.

Reflecting on a digitalisation journey that started eight years ago, Melbourne – Orica’s Chief Technology Officer – said the original ambition was about taking a very manual process like blasting and digitising the workflows.

“Essentially what we wanted to do was anchor into the design and connect the on-bench activities for a verification process as to where the drill pattern was and how this reconciled with the actual outcome,” he said. “The key was always to link this back to the hub of the machine.”

Bringing data and insights into this equation resulted in better placement of energy (ie explosives), which has since become part and parcel of Orica’s aim of “mobilising the Earth’s resources in a sustainable way”.

The second element underlying this digitised push was the acceleration of automation.

“You cannot automate unless you have a digital foundation,” Melbourne said.

This led to the company – both organically and through M&A – building up a suite of software, sensors and data science applications to enable processes within the explosives and blasting process to be automated.

Just what processes to automate has always been dictated by safety and productivity.

“Getting people off the bench, face, voids, high walls, etc becomes a clear motivator for automating certain processes,” Melbourne said. “It is a bit more difficult on the productivity side of things; you have to be generating value, not just automating for the sake of it.”

From Orica’s initial point eight years ago, the company has progressively moved into adjacencies such as post-blast outcomes, geology and more, bringing the same mindset to each part of this distinct process, while integrating it into the wider work patterns.

Mathiravedu (Orica Digital Solutions Senior Vice President) explained: “What we are seeing in the digital space is the fact that, with blasting, you can either create or destroy value. With all the tools and expertise we have, plus the ability to connect the physical and digital components, we are making the whole process more productive, as well as optimising the use of consumables like water and energy.”

Rajkumar Mathiravedu presenting Next Gen SHOTPlus at MINExpo 2024

And as Orica has opened further to the wider mining ecosystem – think of recent tie ups with Epiroc on the Avatel™ semi-autonomous explosives loading solution showcased at MINExpo or Caterpillar on a potential integration between Rhino™, BlastIQ™ and FRAGTrack™ technologies with Cat® MineStar™ Terrain – its influence across the whole flowsheet continues to expand.

Melbourne said: “If I go back a decade, Orica would have been doing a lot of these things itself…but both Raj and I have worked in other industries that, for various reasons, were collaborative. As a result, we were far more open to working with others.”

This openness is seen with one of Orica Digital Solutions’ latest launch, Next Gen SHOTPlus™, which unlocks the power of the Model Through Time; a cloud hosted, spatiotemporal, digital replica, Orica says. Incorporating the proprietary physics engine, Helfire Damage Model and Advanced Vibration Management solution, Next Gen SHOTPlus enables drill and blast engineers to model and predict blast movement, damage and vibration.

Predictive blast movement modelling is enabled by Predict Physics Engine, allowing engineers to understand the impact of decisions on the post-blast muck pile. The Blast Damage, meanwhile, feature provides 3D damage modelling, allowing engineers to evaluate the predicted damage generated on both blasted and in-situ rock masses.

As the Avatel system loomed over the Orica booth at MINExpo (it was on the adjacent Epiroc stand, see below), it seemed only right to ask about the potential to fully automate the explosives loading process based on the safety and productivity drivers Melbourne outlined.

“The goal is to go fully autonomous,” he replied. “If you look at the safety and productivity drivers, semi-automation advances both of those, but there are opportunities to improve upon both – we are clearly still underground at the moment, which comes with risk, and there are other elements of cleaning, priming and loading that could be accelerated in the development headings through full automation.”

One of the underlying technologies of the Avatel platform is the WebGen™ wireless initiation system, which has been key to unlocking new mining methods and techniques, with numerous case studies detailing a strong value case.

A fully autonomous Avatel unit could do similar, according to Melbourne, ticking that productivity box.

“With full autonomy, you can start to employ new mining methods and go to different parts of the mine you couldn’t previously,” he said. “On a case-by-case basis, you can look at individual mines where they understand the mineralisation that, because of safety constraints, cannot currently be classified as a resource or reserve.

“If we’re able to remove that constraint, we can start to tangibly assess bringing that into a resource or reserve and mining that.”

Surface emulsion innovations drive coal sector sustainability, AECI Mining says

Safety is paramount in every responsible mining operation, yet certain geological conditions, such as reactive ground and hot-holes, pose significant challenges, particularly in the coal sector.

Edward Felix, Regional Manager of Surface South Africa at AECI Mining Explosives, highlights the company’s commitment to research and development, which has led to the creation of new surface emulsion technologies like the Powergel base emulsion range. These innovations not only enhance safety but also contribute to the sustainability of the industry.

Felix said: “AECI Mining Explosives is at the forefront of developing base emulsions for various applications. Our solutions are purpose-built and continuously improved to enhance product performance and decarbonise the value chain. These principles extend beyond emulsions to our entire surface product offering.”

Powergel X², part of the Powergel product range, is specifically designed for surface mining operations facing extreme blasting conditions. While most products cater to either reactive ground or hot-holes, Powergel X² addresses both simultaneously. This single-solution-technology not only improves safety but also reduces the need for maintaining large inventories, offering significant benefits to AECI’s customers dealing with a variety of extreme ground conditions.

Powergel X² is developed in a safe, non-explosive form as a base emulsion, sensitised upon loading into the blast holes from where it becomes an explosive after completion of a chemical process. Additional customer benefits include optimal shelf life, leading to better working capital and inventory management, as well as improved product ‘flowability’, which results in cleaner storage silos.

“Although coal mining is often perceived as environmentally harmful, it remains a crucial resource. AECI Mining is committed to helping customers and partners engage in responsible mining practices by developing technologies that ensure sustainability across the economy, industry, and environment. Our approach to continuous improvement drives us to keep advancing,” Felix states. “Recent advancements include emulsion technologies for extreme conditions, new booster technologies with non-explosive raw materials that reduce our carbon footprint, and improved electronic detonator technologies to minimise environmental impact.”

Taking the Powergel range a step further, AECI Mining has introduced an eco-variant of the product, which offers excellent water resistance and incorporates recycled oil within the emulsion. Over the past decade, since integrating used oils into its various Eco bulk emulsion formulations, AECI Mining Explosives has consumed more than 80 million litres of used oil and prevented approximately 55,000 tons of CO2e emissions from entering the atmosphere due to the properties within the chemistry.

Felix emphasizes that innovation is deeply embedded in AECI Mining Explosives’ DNA. As Africa’s first explosive manufacturer, the company has always prioritised explosives research and development to meet the needs of its customers operating in challenging mining conditions.

“Every product we develop at AECI Mining is designed with our customers and their specific applications in mind. Our goal is to meet customer needs responsibly by understanding and addressing the entire value chain,” he says. “While we initially developed the Powergel X² series to serve our Tier 1 customers in South Africa’s coal fields, addressing hot-hole and reactive ground conditions, we have expanded this success by creating a solution for extreme geothermal conditions in Papua New Guinea.”

The emulsion technology is now being used alongside AECI Mining’s specially designed delivery systems and hot-hole initiation systems. These technologies are not only tailored to meet the immediate challenges of extreme geothermal conditions but are also designed to sustain mining operations well into the future. By addressing both current and emerging needs, AECI Mining is ensuring that its innovations will continue to support the industry’s growth and adaptability in increasingly complex environments.

AECI lays the ground work for explosives, chemicals expansion in Peru

As part of its strategy to further internationalise its Mining Service business, AECI has acquired a significant development project in Peru.

This acquisition not only marks a fundamental step in AECI’s global expansion strategy, but also, it says, positions the manufacturer of explosives and chemicals solutions for mineral processing at the forefront of innovation in the Latin American mining industry.

Since its expansion into Brazil and Chile in 2020, AECI’s entry into Peru establishes the company as a dominant player in one of the world’s most dynamic mining regions, the company says, offering an opportunity for AECI to deliver its products and services to a market ready for growth.

Holger Riemensperger, Chief Executive Officer of AECI, says: “Peru represents a strategic addition to our growing footprint in Latin America. This acquisition not only strengthens our position in a key market but also underscores our commitment to providing innovative and sustainable solutions that meet the evolving needs of the global mining industry. We are not just expanding geographically; we are setting new standards in how mining solutions are delivered.”

The newly acquired project encompasses nearly 200 ha of strategically located land, complete with permits to build state-of-the-art explosive manufacturing plants. Situated in the heart of Peru’s most productive mining region, this land will serve as a launchpad for AECI’s direct operations, enabling the company to supply safely and efficiently to the local mining industry.

Thinus Bierman, Acting Executive Vice President of AECI Mining, said: “Our investment in Peru is a testament to our confidence in the country’s mining sector and our strategic vision for the future. We are not merely entering a new market; we are making a commitment to drive growth through innovation, local partnerships and a deep understanding of our customers’ needs. This is about creating value for our stakeholders and setting the stage for the next chapter of growth.”

The development project will empower AECI to deliver a comprehensive suite of products and services, ranging from high-performance explosives, as well as the introduction of its electronic detonators and initiating systems. It also includes the offering of its specialised mining chemicals.

The company said: “With significant planned investments in infrastructure and technology, AECI is poised to maximise the potential of this project, ensuring a consistent and reliable supply to its customers, while pushing the boundaries of what’s possible in mining.”

Boliden, Hypex Bio inaugurate Sweden’s first nitrate-free explosives facility

Boliden has announced the introduction of nitrate-free, low-carbon explosive, developed through a collaboration between the mining company and Hypex Bio Explosives Technology.

This new technology not only reduces the mining industry’s CO2 footprint but also eliminates nitrogen pollution in soil and water, setting a new standard for sustainable blasting, Boliden says.

Hypex Bio’s patented explosive is a major innovation in commercial blasting – one of the most significant advancements since Alfred Nobel’s invention of dynamite over 150 years ago, the miner claims.

Back in March, Boliden announced it had become the first mining operator to sign an agreement for the production and delivery of a newly developed explosive from Hypex Bio with significantly improved environmental and climate performance. In the process, the company’s need for nitrogen treatment of water is being reduced and its climate performance is improving by around 400 t of CO2 per year, it explained.

On September 16, Boliden and Hypex Bio officially inaugurated Sweden’s first facility for manufacturing nitrate-free, climate-friendly explosives at the Kankberg mine outside Boliden.

This facility represents a new standard for the next generation of explosives, thanks to a successful partnership between the two Swedish companies committed to driving the future of sustainable and climate-resilient mining, both locally and globally.

“With a production capacity of 270 t per week, this explosive already exceeds Boliden’s current operational needs, marking a major leap in the green transition of mining operations,” Boliden says. “As we continue striving to become the world’s most climate-friendly metals supplier, this technology will play a vital role in reducing our environmental impact, both in Sweden and globally.”

Austin Powder geared for explosives, blasting growth with AIP investment

Austin Powder, a leading provider of industrial explosives and engineered blasting solutions, says that it has received a strategic investment from American Industrial Partners (AIP) to support and enhance the company’s growth strategy in partnership with Austin’s existing long-term ownership group and management team.

Operating in a safety critical and technical industry, Austin Powder has nearly 200 years of industry expertise that has enabled it to build a suite of integrated products and services for the blasting process. The company has only had four owners in its history, and the current ownership and management team has successfully expanded Austin over the past 40 years into a leading global operator. AIP’s financial and operational support and resources will help position Austin Powder for continued growth and success over the next decade, Austin Powder says.

Austin Powder President and CEO, John D. Rathbun, said: “We had been deliberately seeking an investor that would expand our ability to provide world-class explosive products and services, accelerate innovations, facilitate expansion into new territories and preserve our heritage and unique culture. Equally important was finding a partner that shared our values of safety, customer service, family and respect. We believe American Industrial Partners is an ideal partner for Austin as we move forward.

“We look forward to working with the AIP team as we continue to grow and differentiate our business globally. The partnership with AIP will support our efforts to continue to earn the privilege to serve our customers.”

AIP Partner, Justin Fish, said: “Austin Powder’s unique heritage and inspiring culture has stewarded the business to great heights while maintaining a strong core of safety, customer focus and family. We look forward to building upon Austin Powder’s tremendous legacy, investing in the growth opportunity ahead of us and enabling the company to continue delivering on its worthy and important mission.

”We look forward to partnering closely with the Austin Powder management team and the family of shareholders to chart the company’s third century of growth and success.”

BME to become ‘first local manufacturer’ of electronic detonators in Western Australia

Having actively built its foundation in the Australian mining market over the past decade, global blasting and explosives specialist BME says it is ramping up its footprint and capability with facilities in the west of the country.

These expansions represent a key aspect of the company’s strategic direction, according to BME Managing Director, Ralf Hennecke. Australia is among the high-potential markets in which BME is further expanding its existing operations, he said, leveraging the country’s status as the fourth largest mining country globally after China, the US and Russia. Australia also boasts high mineral exploration rates, which bode well for the industry’s future.

“Our first decade in Australia has been focused on importing and marketing our premium AXXIS™ electronic initiation system,” he explained. “The next exciting steps, however, go well beyond that into local manufacturing of detonators and other products and equipment in our own certified, state-of-the-art automated facilities. We also have our mobile manufacturing units (MMUs) in the country to fully integrate with our other products.”

The licensing processes have been completed for a site that BME Australia has secured in the Kalgoorlie area of Western Australia, a region strategically positioned to best supply the miners of iron ore, gold, nickel, lithium and other strategic mineral resources. This will allow the company to become the first local manufacturer of electronic detonators in the state, providing significant supply chain security and logistical benefits to mining customers, it says. The plan is to begin production by May 2024.

“Manufacturing in-country removes considerable supply chain risk for the industry, which the COVID-19 pandemic highlighted for every sector,” Hennecke said.

A similar facility has already been established in Canada as part of BME’s globalisation drive. The Western Australia plant will be able to draw on equipment that has been tried and tested in the company’s South African operations, include a semi-automated line from BME’s Losberg plant.

BME has built on its strong relationships with global blue chip mining companies in the planning of its new plant, and has reported a high degree of interest from the sector’s leading players. The AXXIS detonator has been well accepted through its multiple upgrades – and has been successfully deployed across eastern Australia for over a decade. With BME’s expansion into Western Australia, trials have been conducted with AXXIS electronic detonators at various mines in the state, and the results were extremely positive.

Emphasising the market demand, Hennecke noted that there has been a significant shift away from shock tubes and towards electronic detonators in Australia’s mining sector – as mines look to safer, automated solutions to reduce the number of ‘boots on the bench’.

“This aligns importantly with the very strict safety policies and regulations that the country has in place,” he explained. “The technology contributes to industry’s risk mitigation efforts, but also holds performance benefits in terms of facilitating large, accurate and reliable blasts which support mines’ sustainability and productivity.”

He said that BME’s progress in Australia was an expression of the company’s global ambitions, which are now turning from plans to action in the country through its commitment of capital investments and infrastructure.

Boliden to implement Hypex Bio climate-friendly explosives at Kankberg mine

Boliden says it has become the first mining operator to sign an agreement for the production and delivery of a newly developed explosive from Hypex Bio with significantly improved environmental and climate performance.

In the process, the company’s need for nitrogen treatment of water is being reduced and its climate performance is improving by around 400 t of CO2 per year, it says.

Peter Bergman, General Manager of the Boliden Area, said: “For us, it is important to be part of technology development in many areas and, when it is successful, we also want to be early with implementation. Together with the electrification of transport and other machines, this means another important step towards being able to conduct mining operations that are, in principle, fossil-free.”

The agreement with the Swedish explosives supplier Hypex Bio is for the production and delivery of nitrate-free and environmentally friendly explosives to Kankbergsgruvan, Boliden. Boliden and Hypex will cooperate on the production and delivery of nitrate-free and environmentally friendly explosives to the Kankberg mine, which includes the establishment of a production facility at the mine as well as a delivery and service agreement.

The supply and service agreement for Hypex’s explosives solution spans five years, starting in 2024. The production quantity is expected to amount to 400-450 t and, thus, largely meet the Kankberg mine’s annual needs. In addition to the fact that the explosive drastically reduces the need for nitrogen treatment of water, the climate impact is reduced by approximately 400 t of CO2 per year (Scope 3), Boliden added.

The collaboration between Hypex Bio and Boliden has been ongoing since 2020, where the nitrate-free explosive has been developed and tested in the Kankberg mine. The technology has proven to meet Boliden’s requirements for safety, performance, environment and reduced carbon dioxide emissions. Tests have also been carried out in the Garpenberg mine and are to be started in the Aitik copper mine, the company says.

Back in October, Omnia Holdings announced a strategic partnership with Hypex Bio and the acquisition of a minority equity stake in the company.

BME reflects on explosives market developments following ISEE conference attendance

Following its attendance at the recent International Society of Explosives Engineers event in the USA city of Savannah, Georgia, last month, Neil Alberts, Head of Business Development at BME Mining Canada, has highlighted the high level of creative innovation in blasting on show.

“The industry has definitely made the most of addressing the challenges presented by the pandemic – really raising its game in terms of technology solutions,” Alberts said. “These advances are important in strengthening the mining supply chain globally, while continuing to promote productivity, efficiency and sustainability.

“While many of the market’s offerings had been introduced at previous ISEE conferences, there was more confidence in their capabilities this year and a better likelihood of uptake. Some smaller vendors – from as far afield as South Africa, Australia, Indonesia and European countries – also presented more open platforms, making these easier to integrate with other solutions.”

According to Christiaan Liebenberg, BME’s Product Manager Software, this year’s event was also a chance for BME to demonstrate their digital tools that enhance its ability to integrate with its digital product suite.

“This included our BlastMap blast design software and our Xplolog data capturing system, as well as our advances in digitising our emulsion trucks,” he said. “It was an important opportunity to show our integration capabilities and our offerings throughout the blast preparation value chain.”

He noted that there had been enthusiastic adoption of BlastMap in the last couple of years, as the market had grown more familiar with its ease of use, integration capability and powerful features. There has also been a significant shift towards strategic collaboration within the digital space, as many players realise the value of sharing aspects of their expertise in the interests of better customer products and solutions.

“In addition to sharing our insights, the ISEE continues to be an important forum for BME to learn more about leading edge developments and to identify potential partners in our technology journey,” he said.

Alberts highlighted that BME has developed specific requirements based on its customer mapping, and seeks out strategic alliances with partners to fulfil the technological opportunities it had identified for success.

BME’s Global Manager Blasting Science, D Scott Scovira, presented a paper on “Breaking the Nitrate Based Explosives Greenhouse – The Dawn of Production Scale Hydrogen Peroxide Emulsion (HPE) for Industrial Blasting” in the ISEE technical sessions. Scovira noted that this year’s technical presentations included more papers by primary researchers and consultants – giving the event a valuable proportion of fundamental research to augment those papers which were more application or product focused.

“The ISEE is a very focused and concentrated conference of blasting professionals,” he emphasised. “This is why BME management and leadership attends this event, to get closer to the end-user and to stay up to date with their changing needs.”

ISEE delegates visiting BME’s exhibition booth were also able to catch up on the company’s developments in North American markets. Alberts said BME was well advanced in preparing for its service contract with a gold miner in Canada, having commissioned its on-site emulsion plant.

“Our exciting infrastructure development is the BME Centre of Excellence outside the town of Nairn Centre, where we have completed our detonator plants,” he said. “Our AXXIS and Viperdet modular lines are now installed and commissioned, and production is to begin shortly.”

An emulsion plant has been completed on the site, with a second being relocated there from another location in Sudbury. The plans for a hydrogen peroxide emulsion plant are also underway. BME Mining Canada is a joint venture of BME and Canada-based mining and construction contractor Consbec.

“With our staff count now at almost 50, we are leveraging our assets and the industry relationships of our strategic partner in building our networks,” he said. “This year is going to be game changing for us, as we step up our capability in the underground space.”

DynoNobel-Saudi

Dyno Nobel to partner with SCCL on Saudi Arabia technical ammonium nitrate plant

Incitec Pivot Limited’s Dyno Nobel says it will partner with Saudi Chemical Company Limited (SCCL) to investigate the development and operation of a technical ammonium nitrate plant in Saudi Arabia.

Under a non-binding Memorandum of Understanding (MoU) entered into between the parties last month, Dyno Nobel will provide a range of expertise to assist the development and operation of the Kingdom of Saudi Arabia’s first ever Technical Ammonium Nitrate (TAN) Plant.

Dyno Nobel says it brings to the partnership global expertise in developing and operating plants across three continents and world-class project management and manufacturing skills. It will support the project’s Front End Engineering Design and project services for the development of the 300,000 MTPA TAN plant in Ras Al-Khair, Eastern Province of Saudi Arabia.

A key part of the MoU is the future establishment of a joint venture with SCCL and the investment company for construction and operation of the plant. The joint venture would supply TAN and nitric acid to Saudi regional mining and industrial users and enable Dyno Nobel to supply TAN to its international mining customer base, Incitec Pivot says.

Dyno Nobel Asia Pacific President, Greg Hayne, said: “We are very pleased to partner on developing this exciting project which provides significant potential for the development of the Middle East’s mining industry.

“Our team’s technical knowledge and TAN expertise is an excellent fit and a key advantage for the project.

“The project also aligns with our long-term strategy to grow our global footprint and further expand our manufacturing operations and sales in the broader Europe, Middle East and Africa (EMEA) region.”

Incitec Pivot Limited Chief Technology Development Officer, Rob Rounsley, said: “This partnership aligns with our EMEA blasting technology strategy to support surface and underground mining, civil tunnelling, quarrying, and general construction across the Saudi and EMEA mining sectors.”