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BME accelerates global growth with Joint Venture in Indonesia

BME has taken another significant step in its globalisation strategy through the recent signing of a joint venture with a leading Indonesian player.

BME accelerates global growth with Joint Venture in Indonesia
Sitting (left to right): Ratno Paskalis Hendrawan, President Director of MNK; Seelan Gobalsamy, CEO of Omnia Holdings. Standing (left to right): Parluhutan Sinambela, MNK director of finance; Ralf Hennecke, BME MD; Bayu Andhikajaya, MNK Operations and Commercial GM, BME Business Manager in Indonesia, Agusman Agusman.

The mining subsidiary of Omnia Holdings, BME has signed a Conditional Sale and Purchase of Shares Agreement with PT Multi Nitrotama Kimia (MNK), an Indonesian market leader in the provision of explosives and blasting services. The JV – called PT Kemitraan MNK BME – combines BME’s innovative technology, products, and solutions with MNK’s local networks, experience, and resources. The JV creates an integrated offering with an expanded suite of products and services for both surface and underground mines.

According to Ralf Hennecke, Managing Director of BME, the JV marks a step change in BME’s international growth. It will allow a broadening of its business base to include MNK’s current contracts, which will be ceded to the JV in a phased manner.

BME Business Manager in Indonesia, Agusman Agusman, highlighted that the synergies between BME and MNK positioned the companies well to grow market share together. BME’s innovations have included its AXXIS electronic initiation system and other digital blasting tools, its range of specialised emulsion explosives, and the incorporation of used oil as a fuel agent in its emulsions. For its part, MNK has strong relationships with the country’s major miners, and a track record of over 30 years as an established ammonium nitrate manufacturer.

“We have been actively supplying explosive products and accessories into Indonesia for more than a decade and began partnering with MNK in 2019 on a large mining project. This has been a very successful collaboration, leading to us commissioning our first mobile manufacturing units (MMUs) and emulsion plant outside of Africa,” said Agusman.

On this project, he noted, BME became the first multinational mining supplier to receive a good mining practice award (UTAMA) in the blasting services category by the Indonesian government. It was this kind of recognition that helped pave the way to the JV with MNK, he explained, and which showed the future potential of the venture.

The joint venture is in line with the global expansion strategy of Omnia Holdings, said Seelan Gobalsamy, Group Chief Executive Officer of Omnia Holdings. According to President Director of MNK, Ratno Paskalis Hendrawan, MNK is in a strong position for growth as the leading provider of mining explosives and blasting services company in Indonesia.

Agusman said that Indonesia had a bright future as a mining country, creating an exciting platform for growth for the JV. Minerals which are likely to be in demand for several decades to come, as gold, copper, aluminium, nickel, tin, bauxite and coal, provide a good base for the venture.

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