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.