Omnia Holdings’ mining subsidiary BME has signed a joint venture (JV) agreement with PT. Multi Nitrotama Kimia (MNK), an Indonesian market leader in the provision of explosives and blasting services and the second-largest company of its kind in that country.
“The JV positions BME and MNK with enhanced opportunities for growth and expansion in one of the largest global mining markets. Combining BME’s technology, and 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,” Omnia CEO Seelan Gobalsamy said yesterday in a statement.
BME and MNK had already successfully partnered in a five-year contract for blasting services at a mine in Kalimantan, which had led to the commissioning of the first mobile process units (MPUs) and emulsion plant outside of the African continent.
“Today marks a significant milestone on our international growth journey,” said Gobalsamy.
MNK is the second-largest explosives company in Indonesia with complete explosives business licences. It is an 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,” BME managing director Ralf Hennecke said.
Ratno Paskalis Hendrawan, the head of MNK, said: “Culturally we are confident both companies are a good fit, having already developed a sound relationship during the establishment of contracted blasting services.”
BUSINESS REPORT