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BME exploring new ventures in Namibia

5th April 2013

  

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Local explosives provider BME reports that it has realised the potential of uranium mining in Namibia, based on its involvement in several new projects, including a new site based in Arandis, 50 km from Swakopmund, in the centre of the uranium mining fields.

This has prompted the company to invest in an accessory depot, with an explosive-blending truck service ability. Emulsion manufacturing ability is a future expansion possibility.

“The BME group plays a pivotal role in ensuring supply security for the Namibian uranium mining sector,” says BME GM bulk operations Albie Visser.

He states that BME was exposed to Namibia’s uranium mining industry through its collaborative efforts with the local uranium mines, which are currently enduring low spot prices for uranium.

Visser adds that BME’s partnership with clients is based on the supply of raw materials for explosives manufacturing and the supply of mobile manufacturing units or explosives blend trucks, with backup for this equipment.

“We give the companies technical advice with regard to emulsion manufacturing, explosives application and technical services in openpit blasting applications.

“We are also involved with our clients to increase stockholding at various mine premises. At BME, we understand the risk and monetary impact that an outage of explosives can have on the production of uranium.”

He adds that most uranium mines are dealing with the current low state of the uranium market by reducing internal and external costs in various ways.

“BME is in the process of assisting our clients to manage the current low prices in the uranium market and BME has invested significantly in ammonia supply, nitric acid plants, emulsion plants, explosive-blending truck technology and stockholding to ensure that all the uranium producers are supplied on time and in full,” he says.

Technology
Visser explains that BME is also in the process of introducing their electronic detonator to the Namibian mining sector, with trials at the country’s largest openpit uranium mine.

“The design capability is associated with programmable, accurate and easy-to-use AXXIS electronic detonators and BME’s design software, which assists with blast improvements, particularly at hard-rock mining operations,” he notes.

He adds that, currently, BME supplies raw materials such as ANCN explosive solutions, emulsifiers and technical support to the plant and the openpit.

“BME supplies a comprehensive prime, load, tie and shoot (PLTS) service. We supply all the accessories and emulsion explosives and carry out the blasting at some of these sites.

“We supply the same services to uranium mines in northern Malawi, in Southern Africa,” he states.

State of the Industry

Visser notes that uranium spot prices could fall even further in the short term, but this price is not sustainable, as most uranium mines are struggling and new projects are currently being put on hold.

“With little or no capital available from investors, it is probably the single biggest challenge for the uranium market,” he says.

Visser adds that the current low spot pricing is putting severe pressure on new and current mining operations, with cancellations, possible shutdowns and restructuring.

“The noninvestment in exploration to find new resources in the long term, may support the increase of the spot price in the future. We will possibly see a similar rush for resources just before the downturn. “BME needs to align itself with current uranium producers that can easily ramp up production levels and with those that have a good uranium resource. “This will mean that the growth in the explosives market will come from these uranium suppliers,” he says.

Visser notes that the most significant achievement of BME’s work with Rossing Uranium is having provided the miner with supply security.

Challenges

Visser adds that BME has noticed that one of the most significant challenges that the industry faces is a serious skills shortage.

“On all fronts, people are moving between different mining operations to better their income and career opportunities. In an industry frequently facing low spot-market prices, it is not easy to train new personnel and expose them to a new company’s process,” he says.
Visser notes that, in the near future, BME Namibia will provide training facilities in Swakopmund to focus on PLTS skills.

“BME will also further invest in several skills programmes to apply the available skills in the geology and chemistry segments of the Namibian market. Although these skills are not always directed at blasting, the ability of the learner is certainly there,” he says.

Edited by Megan van Wyngaardt
Creamer Media Contributing Editor Online

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