Modern Mining April 2019

COVER STORY

that the business has expanded into. AEL’s expansion into Australia has been well received by this market. According to information released by the Australian government, Australia has “a robust and world-leading min- ing industry evidenced by a top five position as a producer for some 19 com- modities including gold, aluminium, iron ore, rare earths, mineral sands, zinc, lead and coal. “In 2016, Australia’s mineral exports (excluding petroleum products) amounted to more than $151 billion which was almost 58 % of all export merchandise and 46 % of all exported goods and services. In the 2016-17 financial year, mining accounted for 7,4 % of gross domestic product. In addi- tion, the mining industry employed more than 230 000 people in 2016, with many more employed by related industries.” This growth is shown in tax revenues. A recent article says that “according to Deloitte Access Economics, the Australian minerals industry paid $18,6 billion in company tax for 2017-18 alone – equal to 22 per cent of all company tax collected for that year.” In an article which appeared on Mining.com, the growth of the indus- try is linked to the exploration of new mining opportunities: “That’s the result not only of a rich mineral endowment but massive amounts of money spent on explora- tion across the continent.” The country down under is perfectly poised for the South African inno- vations that AEL Intelligent Blasting has developed. An example of this is the Intellishot™ detonator, developed with over 30 years of electronic detonator learning. This technology has incorporated the design for improved resistance to blasting phe- nomena generated during detonation, such as an electromagnetic pulse, static electricity, and shock- and pressure waves. Australia’s focus on safety in the sector is mirrored by AEL’s values. “Safety is at the heart of everything we do. We have gone to even greater lengths to ensure our customers benefit from the excel- lent safety record they have come to expect

on optimal blast outcomes, optimising blasting processes and solving blasting problems,” says Ludick. These partnerships as well as other types of business models are being used to expand into other regions of the globe. As part of its international expansion strat- egy, AEL Intelligent Blasting has recently acquired Dinacon, an explosives company in Brazil, for US$6,3 million. The purchase of the business, located near Lorena in Sao Paulo, includes 100 % owner- ship of the manufacturing plant, distribution and storage facilities and the requisite explo- sive operating licences. “This is a great opportunity for meaning- ful entry into the explosives market in Brazil and the rest of Latin America (LatAm). It is in line with the business’s intent to continue expanding the geographic footprint of its min- ing solutions strategic growth pillar,” Ludick comments. He adds that Brazil has more than 8 000 mines, so there is a sizeable opportunity for growth, particularly in terms of leverag- ing AEL’s significant experience in open-pit and underground mining from its African,

Australian and Indonesian footprint, and its long-standing relationships with interna- tional mining companies such as Anglo American and Vale. The acquisition will bolster AECI’s LatAm operation that has focused on the distribution of fertiliser additives for agri- culture, mining chemicals and surfactant technologies for ore beneficiation. Historically, Dinacon has supplied explosives mainly to the Brazilian civils and construction industry. Its busi- ness in local mining, which represents the world’s third largest output by value, has been limited. The transaction, which was implemented through a judi- cial recovery (business rescue) process, has been finalised and is expected to take effect in the second quarter of 2019. When that happens, Dinacon Lorena will be rebranded as AEL and trading will commence under the AECI LatAm banner. Brazil is not the only region

The IntelliShot™ system from AEL offers efficient and sustainable blasting technology for optimal blast outcomes.

April 2019  MODERN MINING  19