Modern Mining January 2015

COVER STORY

Explosives supplier BME, part of the R16 billion-a-year Omnia Group, has remained remarkably resilient in the face of one of the worst miningmarkets seen in recent years. According to the company’s MD, Francois Hay, the revenue recorded by BME (and its sister company, ProteaMining Chemicals ) in the six months to 30 September 2014 was only marginally down – R2,7 billion as opposed to R2,8 billion – on the equivalent six months in 2013, a very creditable performance given the poor mining environment, particularly the West Africanmarket where all mining activity – but especially goldmining – has been under severe pressure. BME resilient in the face of mining industry downturn

H ay has no illusions about 2015. “We’re hoping for a good year but not expecting one,” he says. “The global outlook for com- modities does not look promis- ing and this is bound to impact on the African mining sector. But we accept that we’re in a highly cyclical industry and are confident that we will be able to ride out the downturn.” While BME and Protea – who collec- tively form Omnia’s mining arm – managed

to maintain revenue at a reasonable level in the six months to 30 September 2014, prof- its were down by 6,4 % to R424 million from the R453 million recorded in the comparable period in 2013. Comments Hay: “We contained our costs very well but the market is fiercely competitive and our operating margins were down as a result – but nevertheless within our target range.” Hay makes the point that if West Africa is taken out of the equation, BME performed well

Francois Hay, Managing Director of BME.

BME’s emulsion plant at Dryden showing hot solution tanks and finished product silos.

22  MODERN MINING  January 2015