Mining and explosives solutions provider BME – a subsidiary of Omnia Holdings – has signed a conditional sale and purchase of shares agreement (CSPA) with Multi Nitrotama Kimia (MNK), an Indonesian provider of explosives and blasting services.

The two companies will form a joint venture (JV), which will provide 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 states.

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.

“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 on a strong and successful relationship to date and we’re confident it will power us for the next exciting chapter,” comments Omnia CEO Seelan Gobalsamy.

“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 BME MD Ralf Hennecke.

MNK is the second-largest explosives company in Indonesia with complete explosives business licences. It is an established ammonia nitrate manufacturer and has an existing services base to leverage with a complementary technology fit to BME. 

“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,” MNK head Ratno Paskalis Hendrawan says.

The JV will make a positive impact on 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.