Modern Mining January 2016

COVER STORY

BME primed to deliver 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.”

T 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

Joseph Keenan, Managing Director at BME.

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

ANCN storage tanks for BME’s emulsions production.

18  MODERN MINING  January 2016