Modern Mining January 2015

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COVER STORY
22 MODERN MININGJanuary 2015
Hay has no illusions about 2015.
“We’re hoping for a good year
but not expecting one,” he says.
“The global outlook for com-
modities does not look promis-
ing and this is bound to impact on the African
mining sector. But we accept that we’re in a
highly cyclical industry and are confident that
we will be able to ride out the downturn.”
While BME and Protea – who collec-
tively form Omnia’s mining arm – managed
to maintain revenue at a reasonable level in
the six months to 30 September 2014, prof-
its were down by 6,4 % to R424 million from
the R453 million recorded in the comparable
period in 2013. Comments Hay: “We contained
our costs very well but the market is fiercely
competitive and our operating margins were
down as a result – but nevertheless within our
target range.”
Hay makes the point that if West Africa is
taken out of the equation, BME performed well
Explosives supplier BME, part of the R16 billion-a-year Omnia Group, has remained
remarkably resilient in the face of one of the worst miningmarkets seen in recent
years. According to the company’s MD, Francois Hay, the revenue recorded by BME
(and its sister company, ProteaMining Chemicals ) in the six months to 30 September
2014 was only marginally down – R2,7 billion as opposed to R2,8 billion – on the
equivalent six months in 2013, a very creditable performance given the poor mining
environment, particularly the West Africanmarket where all mining activity – but
especially goldmining – has been under severe pressure.
Francois Hay, Managing
Director of BME.
BME’s emulsion plant
at Dryden showing hot
solution tanks and finished
product silos.
BME resilient in the face of
mining industry downturn