S African explosives maker anchors in Brazil

23rd June 2023 By: Halima Frost - Senior Writer

South African mining explosives and chemicals company AECI Mining is currently undertaking an expansion project in two strategically significant mining states in Brazil, with an anticipated completion date in mid-2023.

Simultaneously, the planned export of explosives from AECI Mining Explosives’ new Brazilian explosives facility into neighbouring Latin American countries is also underway.

“In-country sales and technical support capabilities, storage facilities and offices to support the fertiliser coatings and metallurgical chemicals portfolios are in place to ensure timeous customer supply and support,” says AECI Latin America MD Carlos Goncalves.

These initiatives will cater to the needs of the fertiliser coatings and metallurgical chemicals businesses.

Distributorship agreements in the Peruvian market have also resulted in “significant” sales growth for AECI’s Intellishot electronic detonator system and metallurgical chemicals.

“We manufacture explosives in the state of Sao Paulo and distribute directly to clients, as well as through a number of select explosives distributors across different states of Brazil,” he adds.

Historically, AECI Mining Explosives would have supplied its clients with explosives and technology acquired through its distributors of choice in Latin America.

In pursuit of the new model, AECI Mining Explosives has acquired a bulk explosives manufacturing and distribution facility in Brazil.

Additionally, the construction of a new bulk explosives manufacturing and distribution facility, in Chile, is under way and is expected to be manufacturing at full capacity by the end of 2023.

Goncalves notes that demand for AECI Mining Chemicals’ metallurgical chemical xanthates and flocculants in the South American region has grown “substantially” over the past few years, owing to the global energy transition, which is leading to higher demand for critical minerals.

The increased development of mines in these regions has enabled the company to expand its product and services offerings.

Key Region

“The current Latin American region accounts for a total global mining production similar to that of the African continent, which in itself, represents an attractively sized market,” says Goncalves.

“We have seen increased activities in terms of requests for proposals for the supply of products and services in the Latin American region over the past 18 months,” he says, adding that “. . . mining companies are seeking to mitigate rising input costs by reducing expenses”.

Goncalves points out that this increase has placed pressure back on the supply chain and suppliers to the mining industry and, in turn, AECI has had to enhance and adapt its offerings to remain competitive.

Leveraging the group’s extensive experience in developing and supplying global mining markets, AECI Mining continually enhances its technologies.

“Cultural dynamics and the way of doing business in the Latin American continent are different to other parts of the world; however, AECI Mining strives to attract talented people in the region who are aligned to our business values and ethics,” Goncalves concludes.