Significant growth in coal- and uranium-mining projects would continue to boost volumes for South African diversified and specialist chemical services group Omnia, its MD, Rod Humphris, said last week.

Speaking at a presentation of the group’s results for the 2009 financial year, Humphris noted that its mining division, which supplies explosives and chemicals to the industry, had been a “star performer”.

While it had seen a reduction in demand from base-metals- and platinum-miners during the year, as a result of the global economic 
crisis and falling demand for commodities, the division had seen an escalation in demand from the coal, uranium and gold sectors.

Revenues for the mining division increased by 65%, to R2,1-billion, for the year ended March 31, 2009, compared with R1,3-billion for the year ended in March 2008.

The group had also managed to bring 
the operating margin of the division back to 
a level of 12,6%, compared with the 9,8% in 2008.

Humphris stated that this was within the 12,5% to 13% range, which was sustainable for the division.

The prospects for the division were “excellent”, commented Humphris, noting that it would especially see increased demand from the uranium sector, where a lot of investment was currently being made.

The division was continuing to improve its products for the mining industry, with its shocktube plant now running.

As it was shifting away from cap fuse technology to shocktube explosives, Omnia was now able to also supply explosives to the under-
ground mines, whereas it had previously mostly 
sold explosives to the opencast mines.

It was also continuing its research into electronic detonators. 
The group was delighted with the product it was developing, said Humphris.

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