The mining industry will remain a feature of the African continent’s future growth and development, and specialist chemi- cal services group Omnia says the growing demand for explosives and chemicals to exploit the continent’s rich mineral deposits will continue to underpin the growth of the company’s mining business.

The African continent provides many of the commodities required by the industries of the world and has an enormous store of untapped mineral wealth. Omnia Group MD Rod Humphris notes that, as a significant supplier of explosives and mining chemicals, the company is well placed to benefit from the expected recovery and growth in mining.

The company reports higher sales of explosives in Namibia and Malawi during its 2009 financial year, as new uranium mines are developed. Humphris says that demand for uranium is expected to be sustained for some time to come, which will present further opportunities for the group’s explosives business. “Our expertise in supplying chemicals for the treatment of uranium ore will also stand the mining division in good stead going forward.”

Further, Humphris points out that mine operators in South Africa continue to move away from using traditional capped-fuse explosives, opting instead for shocktube detonators.

Currently, the Omnia group is already a significant supplier of the technology to opencast mines and is planning to continue enhancing its offering. “We have been aggressively marketing blast solutions for deep- level mines and, with the commissioning of our new shocktube assembly plant, we are set to make significant headway in this area,” says Humphris.

Meanwhile, the group has decided to formulate more stringent product requirements for its international suppliers. Checks by qualified Omnia personnel are now standard procedure on all internationally supplied materials. These quality measures are applied throughout the supply chain from the supplier’s facilities to the point of delivery. “This is to ensure that we are able to offer our customers the highest-quality explosives available in the market,” comments Humphris.

Also, the group continues to invest in the research and development of electronic detonators, and remains confident that the technology will prove its value in the future. Humphris expects that the first of the group’s new range of electronic detonators will be launched in 2010.

During the past year, a number of signifi- cant improvements have been implemented in the company’s BlastMap blast-planning and management software. The software is now able to offer better blast control and predictability, and delivers significant production benefits as it reduces the milling required, thereby improving the mines’ overall efficiency and cost ratios. In addition, Humphris says that Omnia’s experts continue to assist customers in their blast planning, alleviating the shortage of appropriate skills on mines.

Omnia group chairperson Neville Crosse says that in recent months mining explosives prices have fallen considerably from the highs of 2008 as the price of raw materials retreated.

He notes that the price reductions will contain Omnia’s earnings in the 2010 financial year. “However, a positive consequence of lower raw-material prices will be to reduce the group’s working capital requirements.”

Crosse says that one of the factors that can make a difference in volatile and uncertain markets is strengthening customer relationships.

He believes that market volatility will become more commonplace as globalisation is advanced.

Crosse says that building relationships, based on mutual cooperation and shared understanding, is the surest way to weather the tough times and build for future success.