ENAEX, a subsidiary of the Sigdo Koppers Group, says it has reached an agreement with integrated energy and chemical company, Sasol, to become a strategic partner of its explosives and rock fragmentation division.
The agreement, signed this week after a negotiation process initiated last July, considers ENAEX to take part in the business as the controlling partner of this firm, it said. This would be formed by spinning off certain assets and associated activities within the current explosives value chain of the Base Chemicals business of Sasol South Africa.
The new joint venture company will include the associated business activities in both South Africa and the rest of the countries in Southern Africa, with the explosives division having over 1,000 employees, producing more than 350,000 t/y of explosives and generating around $250 million of revenue annually, ENAEX says.
Sasol was founded in 1950 and is today a participant in the explosives industry in South Africa, with a presence also in Namibia and Lesotho.
Juan Andrés Errázuriz, ENAEX CEO, said: “Having successfully completed the process to become a strategic partner of Sasol is a very relevant milestone for Enaex. By this, we have taken a big step in consolidating our company in international markets and expanding the value offer for our customers.”
Errázuriz said, because of its size, Africa was currently the third largest explosive market in the world, with significant growth potential.
“Towards its progress, we can contribute with the extensive knowledge, technology and innovation that we have been developing in the rock fragmentation industry for mining,” he said.
This joint venture is part of the strategic plan of ENAEX to continue strengthening its international presence in the most important mining regions of the world and is subject to any necessary approvals from public authorities, it said.