Introduction
This report focuses on the manufacture of explosives and pyrotechnics. The explosives market is largely dependent on the mining industry, which is losing global competitiveness due to increasing costs, strike action, regulatory and operational challenges, and unstable electricity supply. Demand for more cost-effective solutions remains high and the major explosive companies continue to focus on product enhancements that will lead to mine production improvements and blast optimisation. Innovation by some companies has led to international interest in underground blasting technology while other companies have been exploring opportunities outside South Africa.
Strengths
• Strict regulation of the industry ensures high standard of product quality and safety.
• Vigorous competition drives product development and innovation.
Weaknesses
• High costs and limited skills for the strict regulation, for safety reasons, of explosives in terms of transport, storage and usage.
• The explosive and drilling industry is very capital-intensive.
• The market is dominated by a few large producers which makes it difficult for smaller companies to enter.
Opportunities
• Growth in other countries through the introduction of new technologies.
• Weakening of the rand has a positive impact on export earnings.
Threats
• Inadequate supply of technical skills limits expansion of the industry.
• Load shedding and insecure energy supply increases production costs and places pressure on margins.
• Slow-down of activity in the mining industry reduces demand for explosives.
• The development of new mining technologies and equipment could reduce the demand for explosives.
Outlook
The outlook for the explosives industry remains challenging as the mining sector battles with low business confidence, production declining, insecure electricity supply, labour issues and volatility across all mineral commodities. As a result, companies such as BME will continue looking for new opportunities outside South Africa. BME’s Hennecke said: “With foreign direct investment down, investor confidence eroding, infrastructure constraints, and ever-increasing mining input and utility costs, there are few prospects of new mining operations unfolding. This limits the explosives market.”
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Manufacture of Explosives and Pyrotechnics Industry in South Africa 2018-11-29
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View Report Add to CartManufacture of Explosives and Pyrotechnics Industry in South Africa 2015-10-20
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View Report Add to CartTable of Contents
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1. | INTRODUCTION | 1 |
2. | DESCRIPTION OF THE INDUSTRY | 1 |
2.1. | Industry Value Chain | 2 |
2.2. | Geographic Position | 3 |
3. | SIZE OF THE INDUSTRY | 3 |
4. | STATE OF THE INDUSTRY | 4 |
4.1. | Local | 4 |
4.1.1. | Corporate Actions | 6 |
4.2. | Regulations | 6 |
4.2.1. | Enterprise Development and Social Economic Development | 7 |
4.3. | Continental | 8 |
4.4. | International | 9 |
5. | INFLUENCING FACTORS | 10 |
5.1. | Mining Industry Activity | 10 |
5.2. | Economic Environment | 10 |
5.3. | Government Initiatives | 11 |
5.4. | Electricity Supply | 11 |
5.5. | Technology, R&D and Innovation | 11 |
5.6. | Labour | 13 |
5.7. | Environmental Concerns | 15 |
6. | COMPETITION | 16 |
6.1. | Barriers to Entry | 16 |
7. | SWOT ANALYSIS | 17 |
8. | OUTLOOK | 17 |
9. | INDUSTRY ASSOCIATIONS | 18 |
10. | REFERENCES | 18 |
10.1. | Publications | 18 |
10.2. | Websites | 18 |
APPENDIX 1 | 20 | |
Summary of Notable Players | 20 | |
COMPANY PROFILES | 22 | |
AECI MINING SOLUTIONS LTD | 22 | |
DENEL SOC LTD | 25 | |
DETNET SOUTH AFRICA (PTY) LTD | 30 | |
LION MATCH PRODUCTS (PTY) LTD | 32 | |
MAXAM DANTEX SOUTH AFRICA (PTY) LTD | 34 | |
MINOVA AFRICA (PTY) LTD | 36 | |
NXCO MINING TECHNOLOGIES (PTY) LTD | 38 | |
OMNIA GROUP (PTY) LTD | 40 | |
SASOL DYNO NOBEL (PTY) LTD | 43 | |
SOLAR MINING SERVICES (PTY) LTD | 45 | |
ZIMCO GROUP (PTY) LTD | 47 |