The secure supply of explosives to the mining industry has become increasingly important, as the demand for commodities has returned to levels before the 2008 global recession, reports explosives supplier BME, a member of the Omnia group.

In many cases, mines have to wait for up to 18 months to source raw materials and capital equipment. Providing supply security is, therefore, crucial for mine operators who face increasing production pressure, says BME MD Francois Hay.

“As explosives form the basis of most mining operations, the secure supply of explosives will contribute to the secure supply of commodities.”

However, Omnia international and specialities director Jan Vermaak points out that South Africa’s production capacity for ammonia gas (NH3), which is a key ingredient in the production of nitric acid (HNO₃), is insufficient for local demand. The country’s shortfall is imported mostly from the Middle East.

Ammonium nitrate (NH4NO₃), one of the best explosive compounds, is produced by reacting ammonium with HNO₃.

To mitigate the risks associated with the increased demand for NH3, Omnia signed a five-year supply contract this year with fertiliser company Qafco, of Qatar.

The contract entails the supply of more than 200 000 t/y of NH3 and is valued at about R4-billion, calculated according to the current free-on-board ammonia price, which is between $550/t and $600/t.

To transport the added supply, Omnia has invested in its own fleet of 145 newly built NH3 rail tankers, the first of which was delivered this year.

Vermaak, who was one of the speakers at BME’s annual explosives conference this month, explains that the fleet will shuttle between Richards Bay, in KwaZulu-Natal, and Sasolburg, in the Free State.

He stresses that importing input mate- rials rather than finished products is significantly more cost effective.

“South Africa has been a net importer of NH3 for many years and the addi- tion of Omnia’s new plant will only add to the NH3 import demand. The new facility will be central to mitigating the risk to supply security of NH4NO3 _{that is associated with imports,” Vermaak points out.}

A portion of Omnia’s required NH₃ will still be sourced from petrochemicals group Sasol.

Currently, Sasol is the only producer of NH₃ in South Africa, with production facilities in Secunda, Mpumalanga and Sasolburg.
Sasol’s estimated local NH3 production capacity is about 600 000 t/y, with imports estimated at between 80 000 t/y and 100 000 t/y.

Additional Capacity

Vermaak says the construction of Omnia’s new HNO₃ and NH4NO₃ complex in Sasolburg is progressing well and the project is on schedule for commissioning at the end of the first quarter of 2012.

The project, which was announced last year, is expected to provide additional capacity to improve supply security for BME and its clients.

BME has experienced substantial growth and an increase in activity across sub-Saharan Africa, as a result of the mining boom in Africa, adds Hay. The company is also currently assessing the potential of supplying miners operating in the coalfields of Mozambique.

With a production capacity of 1 000 t/d of HNO3, the new R1.4-billion plant is being constructed adjacent to Omnia’s first HNO3 _{plant, which was con- structed 30 years ago and has a capacity of 700 t/d.}

When complete, the project will posi- tion the Omnia group as the largest HNO₃ and NH4NO₃ producer in South Africa.

“The plant will add about 30% to South Africa’s overall HNO₃ and NH4NO₃ production capacity and will contribute significantly to reducing the country’s shortage of these products experienced over the past ten years,” Hay notes.

The sixth HNO₃ plant in South Africa, the facility will consist of an HNO₃ plant and a porous granular NH4NO₃ plant.

“This facility will be able to supply the group’s anticipated nitrogen demand for the next few years.

“And, with these measures in place, we believe that we have adequately covered the NH4NO₃ supply chain challenges for the foreseeable future,” Vermaak concludes.

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