Secures Joint Venture with Indonesia’s MNK to bring best-in-class South African expertise to a major mining market
Omnia Holdings’ mining subsidiary BME, has signed a Conditional Sale and Purchase of Shares Agreement (CSPA) with PT. Multi Nitrotama Kimia (MNK), an Indonesian market leader in the provision of explosives and blasting services.
The JV positions BME and MNK with enhanced opportunity for growth and expansion in one of the largest global mining markets. Combining BME’s technology, and innovative products and systems with MNK’s local networks, experience and resources, will create a highly differentiated and integrated offering with an expanded suite of products and services for both surface and underground mines.
BME and MNK have already successfully partnered in a five-year contract for blasting services at a mine in Kalimantan which has led to the commissioning of the first mobile process units (MPUs) and emulsion plant outside of the African continent.
Seelan Gobalsamy, Chief Executive Officer of Omnia Holdings, comments “Today marks a significant milestone on our international growth journey. It’s a proud moment for Omnia as we showcase the strength of our mining franchise and harness its potential to drive global growth through innovative, sustainable, solutions. This partnership with MNK builds upon a strong and successful relationship to date, and we’re confident will power us for the next exciting chapter.”
MNK is the second largest explosives company in Indonesia with complete explosives business licenses. It is an established Ammonia Nitrate manufacturer and has an existing services base to leverage with a complementary technology fit to BME.
“This JV represents a step change to BME’s international growth and immediately broadens BME’s business base to include MNK’s current contracts which will be ceded to the JV in a phased manner. BME will have faster access to market, greater diversification and will be well positioned for the future as a major player in the growing Indonesian and Asian market,” adds Ralf Hennecke, Managing Director of BME.
Mr. Ratno Paskalis Hendrawan, Head of MNK added, “MNK is in a strong position for growth as the second largest licenced explosives company (LEC) in Indonesia. Culturally we are confident that both companies are a good fit, having already developed a sound relationship during the establishment of contracted blasting services. We are excited to extend the partnership and expect that there will be a transfer of knowledge and technology, which in turn will enhance the capabilities of the blasting services team, to reach a wider customer base and increase value to all stakeholders.”
The JV will make a positive impact to local employment through the provision of jobs, with the partners demonstrating a strong focus on safety and a commitment to set the highest operational standards for the domestic market.
Omnia, established nearly 70 years ago, is based in South Africa, and is listed on the Johannesburg Stock Exchange. Omnia operates in 25 countries and is expanding its presence across SADC, North America, Canada, Brazil, and Australasia. Internationally recognised for its innovative research and development, and leading supply chain and manufacturing capabilities, which set Omnia apart in delivering specialised solutions to its customer. Omnia’s solutions and leading-edge technologies are offered to clients in the agriculture, mining, water, consumer care, food and pharmaceutical, coatings and manufacturing sectors.
Omnia is a purpose driven business – innovating to enhance life, together creating a greener future. Omnia operates in primary sectors and has a significant impact on food, water and mineral security. Omnia sustains livelihoods by creating employment and opportunities for growth, applying technology for efficient use of natural resources and cares deeply about the future of our planet – always acting in a sustainable manner.
BME is a mining and explosives solutions provider and one of the largest suppliers of emulsion explosives to Southern Africa’s opencast mining sector, with a range of technical services and equipment. BME is also a technology pioneer in electronic detonation systems.
MNK is a member of Ancora Indonesia Resources Tbk and Indonesia’s leading provider of mining explosives and blasting services in Indonesia, holding strong relationships with the major players in Indonesia’s mining industries. MNK has over 20 years of proven track record in producing Ammonium Nitrate (AN) and has recently expanded its production capacity to 150,000 tons per annum.