Accompanying explosives manufacturer, AECI’s celebration of being a registered business for a century, is its eye to the future as the company targets growth in key mining jurisdictions globally and becoming a leading explosives and mining chemicals company world-wide, says Group CEO Holger Riemensperger.
Speaking to Modern Mining on the sideline of the Mining Indaba, Riemensperger explained that the home-grown entity is ranked in the tier one group of explosives companies in the world. However, its entry into key markets including Australia, Latin America, North America and Asia Pacific, will see the company grow organically to move up the ranks.
Mandated to drive “certain areas of change to align with its vision of the future”, Riemensperger is focusing on “what its people, business culture and leadership of the future should look like,” amongst others.
To streamline the business, AECI, which is currently a diversified industrial business with several business units, is in the process of restructuring with the aim of focusing primarily on its mining segment.
Discussing the decision for the new approach, Riemensperger explains: “Decathletes are considered the best all-around athletes in the world but, in each individual discipline, the decathlete will be beaten by the expert. And that is a reality. One needs to focus on one’s expertise, which is what AECI is doing so we are better able to succeed in new resource rich regions of interest.”
Following AECI’s exponential growth, the company plans on further strengthening its global presence. Seventy percent of AECI business is from outside of South Africa with just 30% emanating locally.
“AECI is the number one explosives manufacturer in South Africa and in Africa . Over the past few years we have grown our footprint through strategic acquisitions in Indonesia and Australia, and are exploring possibilities for entering the European market.”
AECI targets an array of commodities
Aligned with South Africa’s long history of mining across a suite of commodities, has been AECI’s 128 years of partnering with the industry. The explosives expert continues to pioneer innovations in product developments to meet the needs of customers across a wide spectrum of commodities.
“We are strong in gold, coal, platinum and iron ore as well as the energy metals the world is eyeing as it transitions to clean energy sources, including copper, nickel and cobalt and specialty minerals such as molybdenum, found in specific regions of the world. Backed by a century of knowledge and expertise, our strategy is to enter firmly into new age metals. There are currently three regions where energy minerals are abundant. These are Australia, where we have an established presence, and where we are on a growth path; Latin America, where we recently made an entry into Chile, which is a big in copper mining jurisdiction, and third; North America,” says Riemensperger.
A pioneer of note
With a history of innovation dating back to the early days of dynamite, AECI continues to successfully develop cutting-edge products and technologies for a changing mining industry.
“At AECI we are constantly innovating to provide clients with customised solutions and thereby remain relevant. Apart from our advanced product range, we are progressing a digital platform to optimise our operating processes. AECI has a combination of explosives and mining chemicals expertise, which add value to different parts of the mining value chain. Our offering provides extensive benefits to our clients,” Riemensperger explains.
The company invests 2% of its revenue into research and development, and going forward, will look to invest twice as much as it focuses on being a market pioneer.
A five-year contract for the supply of explosives and the provision of services to Newcrest Mining’s (Newcrest) Lihir gold mining operation in Papua New Guinea (PNG) was awarded to AECI in October 2023.
“This is an exciting venture and has a number of challenges,” Riemensperger says. “Based on our legacy with the coal mining industry, which requires explosives solutions, AECI has capability to pioneer solutions for a similar challenge. Moreover, given AECI’s mining chemicals expertise, we are also able to assist clients with their water challenges. The area lacks freshwater and our water treatment solution is suitable for treating waste water, which will offer immense benefit to the mine and the surrounding community.”
Discussing AECI’s other innovations, Riemensperger says that to ensure safety and product performance, the company developed a range of portable underground pumps and centralised blasting equipment, that make mining safer, while its mining chemicals range increases the yield of commodities, such as platinum.
In 2021, the company delivered a record-breaking 980m Emulsion Vertical Drop System (EVDS) for Non-Ferrous China Africa’s Chambishi mine in Zambia’s Copperbelt Province, one of the largest underground mines in the country.
“We innovate and pioneer technology to enhance value for our mining clients,” says Riemensperger.
Celebrating a 100 years of excellence
On 20th March 2024, South Africa and Africa’s first explosives company, AECI, will commemorate 100 years of being a registered business with a ceremony held at the JSE - an accolade for any South African business.
The 100th anniversary of AECI will be celebrated with a variety of activities and events throughout the year, highlighting its appreciation for its employees, customers, and the company’s esteemed heritage.
