Modern Mining January 2016

COVER STORY

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MODERN MINING



January 2016

he impact of the sharply reduced

activity in mining was revealed

in Omnia’s recently released in-

terim results for the six months

ended 30 September. While Om-

nia’s Mining division (which consists of BME

and Protea Mining Chemicals, with BME being

much the bigger of the two companies) record-

ed an operating profit of R305 million, this was

28,1 % down on the R424 million achieved in

the equivalent period in FY2014. The revenue

of the mining division over the six-month pe-

riod was R2,2 billion, a 16,1% drop over the

equivalent 2014 figure, while volumes were

21 % down.

“The results turned in by the Mining divi-

sion were extremely creditable given the state

of the market and we’re still on track to deliver

reasonable results for the full year,” comments

Keenan. “But there’s no denying that times are

difficult and that there is little relief in sight.

Our view is that the mining sector globally will

continue to struggle – certainly in the short

term and probably in the medium term as well.

Nevertheless, we remain very positive in BME.

We believe that we are maintaining – and in

BME primed to

deliver

Joseph Keenan, Managing

Director at BME.

ANCN storage tanks for

BME’s emulsions production.

Although it has for long been an excellent performer within the JSE-listed

Omnia Group, explosives supplier BME – like all its peers – is starting to feel

the effects of the recession in mining. BME’s newly appointed MD, Joseph

Keenan, is not overly concerned. “We’re still profitable and still in excel-

lent financial shape,” he says. “The commodities downturn is a given

and beyond our control but we are addressing the current chal-

lenges of the market with a range of initiatives which are increas-

ing our efficiency and productivity and the quality of our product

and service offering to customers.”