Tag Archives: Omnia Holdings

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.

Seelan-Omnia

Omnia Holdings continue to enhance mining segment client value proposition

Omnia Holdings has rebranded Protea Mining Chemicals (PMC) under its Mining segment, BME, consolidating Omnia’s global mining offering under a unified brand to deliver what it says is a comprehensive range of solutions spanning from mining to metal processing.

The rebrand closer aligns PMC with BME’s existing operations, enhancing Omnia’s ability to offer a broad value proposition that combines mine blasting and chemical processing solutions. This shift reflects Omnia’s commitment to an integrated, cohesive approach across its business units, further strengthening its support for customers’ sustainability, quality and supply security needs.

As part of this transition, Omnia’s mining business will focus on two refreshed client value offerings: BME Blasting Solutions, providing explosives and initiation systems, and BME Metallurgy, dedicated to mining chemicals and metallurgical solutions.

Seelan Gobalsamy, CEO of Omnia, said: “Omnia is a global company with a unique customer value proposition, coupled with best-in-class infrastructure. This rebranding and focus on two distinct client value propositions will enhance our ability to deliver innovative and sustainable solutions that meet our customers’ needs across the entire mining value chain.”

The mining business’ Managing Director, Ralf Hennecke, emphasised that this closer alignment builds on BME’s international stature, leveraging the technical expertise, production infrastructure and supply chains to grow BME’s offering throughout the mining value chain.

“We continue to enhance our contribution to more aspects of the mining cycle — not only in breaking rock through advanced blast design but also in enhancing mineral processing, which improves performance efficiency for our customers,” Hennecke explains.

“This offers exciting opportunities for our customers, who will now have enhanced access to a fully integrated value proposition and solution,” he adds.

BME also continues to expand its global footprint beyond its traditional SADC markets, with significant operations in Australia, Canada, Indonesia, West Africa and growing interests in the US. This global reach, combined with BME’s expertise in blast and chemical engineering, ensures the company continues to deliver value to customers worldwide.

Omnia and Hypex Bio to showcase HPE-based explosive benefits at ISEE conference

The potential of hydrogen peroxide emulsion (HPE) to reduce explosives emissions will come under the spotlight at the upcoming 50th Conference of the International Society of Explosives Engineers (ISEE) in USA.

In a paper to be presented jointly by Omnia group company BME and strategic partner Hypex Bio Explosives Technology (Hypex Bio), the authors will explain the benefits of HPE in reducing atmospheric and aqueous pollutants associated with blasting. Titled ‘Breaking the Nitrate-Based Explosives Greenhouse: The Dawn of Production-Scale HPE for Industrial Blasting’, the presentation is expected to generate considerable interest among blasting professionals meeting in Savannah, Georgia, USA from January 24-27.

“The past decade has seen renewed interest in HPE as a route to eliminating NOx fumes from blasting,” D Scott Scovira, BME’s Global Manager Blasting Science and Engineering, said. “As more companies have committed to the COP26 goals of Net Zero by 2050, there has been additional impetus to investigate hydrogen peroxide based explosives for industrial use.”

Scovira highlighted that HPE contains no nitrates and does not generate post-blast NOx. It also generates no aqueous nitrate or ammonia pollution, so also contributes to meeting increasingly regulated mine site water discharge limits.

Hypex Bio has recently developed the formulation, manufacture and end-use delivery of a hydrogen peroxide based emulsion on an industrial scale. According to Thomas Gustavsson, CEO of Hypex Bio, in Stockholm, Sweden, this emulsion is composed primarily of hydrogen peroxide, with a lesser amount of fuel and emulsifier phase. The performance of HPE has proved to be as good as nitrate-based emulsions, and is compatible with current priming and initiation systems, according to the company.

“We recently conducted a successful underground HPE evaluation with a major mining company in Sweden,” Gustavsson said. “HPE blast designs were the same as those done with nitrate-based emulsions, and we achieved equivalent rock breakage, advance, muck displacement and excavator performance.”

He added that the ventilation and re-entry times were reduced during this evaluation, due to the absence of hazardous fumes. The mining company has expressed further interest in assessing HPE as a transformative explosive technology. Gustavsson also highlighted that the production of HPE was energy efficient.

“The base HPE is produced in a low energy intensity modular plant using industry proven mixing techniques,” he explained. “In contrast, the production of ammonium nitrate (AN) emulsion is relatively energy-intensive and not carbon neutral.”

HPE offers a significant reduction in total carbon emission when compared with nitrate-based explosives, he continued. Based on the European Union average and for the oxidiser phase only, 1 kg of AN emulsion emits 2.3 kg of carbon dioxide; in comparison, the production of HPE results in just 0.23 kg of carbon dioxide – a 90% difference.

Omnia entered into its strategic partnership with Hypex Bio in October 2023, and holds a minority equity stake in the company.

Omnia Holdings backs Hypex Bio non-nitrate explosive emulsions solution

Omnia Holdings has announced a strategic partnership with Sweden-based Hypex Bio Explosives Technology and the acquisition of a minority equity stake in the company.

Hypex is at the forefront of innovative and sustainable civil explosives solutions and has developed a ground-breaking emulsion using hydrogen peroxide (HP), offering substantially enhanced environmental benefits compared with conventional products, the company says.

This collaboration marks a significant milestone for both Omnia and Hypex as it will notably enhance the ongoing development and commercial rollout of Hypex’s HP emulsion technology in key markets. Additionally, it provides Omnia, the parent company of global blasting solutions provider BME, with access to state-of-the-art technology.

Omnia, in conjunction with BME, has established a reputation for its dedication to innovation and market-driven product solutions. Extending its services across Africa, Australasia, North America and Brazil, BME offers cutting-edge products and services at every stage in the mining explosives and blasting solutions supply chain, using technology to maximise safety and minimise environmental impact.

Seelan Gobalsamy, CEO of Omnia, said: “Hypex is a good strategic fit for BME and aligns with Omnia’s sustainability and high-growth objectives, including pollution and CO2 reduction. Hypex has developed the first non-nitrate explosive emulsions in the market and reduced the carbon content by 90% over traditional sources. This technology has the potential to completely change the explosives supply industry.”

Ralf Hennecke, Managing Director of BME, said: “As one of the largest explosives and blasting solutions suppliers on the African continent, BME is pursuing a globalisation strategy which is optimally aligned to the sustainable, nitrate-free emulsion technology offered by Hypex.”

Hypex’s experience in rapid yet safe development cycles, combined with the company’s proven track record in commercialisation activities, will use the proceeds from this transaction to further strengthen the organisation and invest in accelerated growth.

Thomas Gustavsson, CEO of Hypex, said: “We are thrilled to announce the partnership with Omnia, and I am very happy to have not only an ideal investor on board but also a company whose culture is well aligned with ours. I foresee significant synergies and accelerated accomplishments as a direct result. The team and I are grateful for the hard work done by both sides to accomplish this deal.”

This partnership agreement aligns seamlessly with Omnia’s capital allocation framework of adding new revenue streams in future high-growth international markets while maintaining a diversified and cash-generative business, improving the group’s competitive advantage and resilience given anticipated market changes, and aligning with its sustainability journey, it says.

Gobalsamy concluded: “As a responsible industry leader, we are committed to sustainable innovation and the responsible use of chemicals for the health, safety and well-being of our planet and its people. Our partnership with Hypex strengthens our ability to develop and distribute eco-friendly products and technologies and is testament to our purpose of creating a greener and safer future for all.”

Protea Mining Chemicals develops world first copper-cobalt processing solution

Diversified chemicals group, Omnia Holdings, reports its Protea Mining Chemicals division has become the first in its field – globally – to develop a solution that helps copper and cobalt mines reduce product contamination (improving metal purity levels) and maximise throughput in the solvent extraction (SX) process.

This pioneering solution took six years to develop and was carried out in partnership with chemicals manufacturers and copper and cobalt mining customers in the Democratic Republic of the Congo, Omnia said.

“Finding safer, more efficient ways to extract valuable resources and enhance profitability continues to be a priority in the mining sector – which has been particularly constrained by the impacts of the COVID-19 pandemic,” the company said.

“This discovery will extend the life of copper and cobalt mines and assist profitability. Protea Mining Chemicals is working closely with other mines to replicate this success in other regions.”

Michael Smith, Managing Director at Protea Mining Chemicals (pictured), said: “Over the past few decades, many unsuccessful attempts have been made by mining houses, global chemical manufacturers, as well as SX equipment and process engineers to address this issue of contamination. Needless to say, this has been a very challenging journey and we are delighted by what we have been able to achieve.”

The news comes hot on the heels of Omnia’s BME breaking the South African record for the largest electronic detonator blast.