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Manufacture Explosives Pyrotechnics Industry South Africa

Manufacture of Explosives and Pyrotechnics Industry in South Africa 2024

Michael Felton | South Africa | 26 April 2024

Manufacture of Explosives and Pyrotechnics Industry in South Africa 2020

Yasmin Mahomedy | South Africa | 11 February 2020

Manufacture of Explosives and Pyrotechnics Industry in South Africa 2018

Yasmin Mahomedy | South Africa | 29 November 2018

Manufacture of Explosives and Pyrotechnics Industry in South Africa 2015

Amanda van der Westhuizen | South Africa | 20 October 2015

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Report coverage

This report on the manufacture of explosives and pyrotechnics in South Africa provides comprehensive information on the state of the industry and mining and manufacturing industries on which it depends. It includes major players and their performance and corporate actions, trade, and influencing factors such as mining activity and criminal use of explosives. There are profiles of 11 companies including major players AECI (AEL Mining Services), Omnia Sasol Dyno Nobel, Enaex, Denel and Lion Match.

Report coverage

This report on the manufacture of explosives and pyrotechnics in South Africa provides comprehensive information on the state of the industry and mining and manufacturing industries on which it depends. It includes major players and their performance and corporate actions, trade, and influencing factors such as mining activity and criminal use of explosives. There are profiles of 11 companies including major players AECI (AEL Mining Services), Omnia Sasol Dyno Nobel, Enaex, Denel and Lion Match.

Introduction

• The explosives and pyrotechnics industries play vital roles in mining, construction, defence, entertainment and events, and produce products used for blasting, excavation, demolition, pyrotechnic displays and defence applications.
• The industry is largely dependent on the mining industry, which is losing global competitiveness.
• Demand for more cost-effective solutions remains high.
• Major explosive companies continue to focus on product enhancements that will lead to mine production improvements and blast optimisation.
• Innovation has led to international interest in underground blasting technology.
• Several companies have been exploring opportunities and expanding outside South Africa.

Trends

• Advancements in technology leading to mine production improvements and blast optimisation.
• Demand for more cost-effective explosive solutions.
• Digitalisation and data analytics enabling predictive maintenance, optimisation of blasting parameters and real-time monitoring.
• Environmental sustainability, as companies explore eco-friendly alternatives, such as biodegradable explosives and low-emission pyrotechnic compositions.
• Explosives and pyrotechnics companies diversifying beyond traditional sectors such as mining and entertainment. Explosives are being used in civil engineering projects, demolition, and defence applications and pyrotechnics in automotive safety systems, aerospace and military applications.
• Globalisation of the industry, exploration of opportunities and global expansion of South African companies to mitigate reliance on the local mining industry.
• Increased focus on safety and regulatory compliance, with companies investing in safety training, risk management and compliance programmes.
• Industry performance is closely tied to the demand for minerals and metals, commodity prices, currency fluctuations and global market trends influencing demand.
• Innovation in effects, synchronisation and control systems in the pyrotechnics sector.
• Measures to prevent unauthorised access to explosives, enhance security protocols and collaborate with law enforcement agencies to combat illegal trafficking and terrorism.
• The South African market is becoming more competitive.

Opportunities

• Defence and security sector expansion.
• Developing eco-friendly explosives formulations, biodegradable materials, and waste management solutions.
• Exploration into export markets.
• Government focus on infrastructure development and civil engineering projects.
• Growth in the mining sector presents significant opportunities.
• Need for training and skills development initiatives to address skills shortages
• Opportunities in quarrying, demolition and site preparation in the construction sector.
• Research and development initiatives to drive innovation, technology transfer and skills development.

Challenges

• High potential to impact the environment through air and water pollution, habitat disruption, and soil contamination.
• Industry is subject to market volatility, influenced by commodity prices, economic conditions, and geopolitical tensions.
• Investing in research and development, adopting new technologies, and enhancing product performance and efficiency.
• Keeping pace with technological advancements and innovation is essential for remaining competitive.
• Public perception and acceptance influenced by safety concerns, environmental impacts and security risks.
• Rising input costs, including raw materials, energy, labour and regulatory compliance.
• Security risks associated with the misuse of explosives, illegal trafficking, and terrorism.
• Shortage of skilled personnel with expertise in explosives technology, safety management, regulatory compliance.
• Strict regulatory requirements govern the manufacture, storage, transportation and use of explosives and pyrotechnic materials.
• The handling, storage and use of explosives and pyrotechnic materials carries inherent safety risks.

Outlook

• The mining sector continues to contend with low business confidence, declining production, increasing costs, unstable electricity supply and labour issues.
• Global expansion and increased exports are playing a vital role in industry growth.
• South African manufacturers have a reputation for producing high-quality explosives and related products.
• Explosives exports contribute significantly to revenue and job creation in the industry, with the industry set to maintain this growth trend.
• Technological advancements are driving innovation, efficiency and safety.
• Diversification into civil engineering, defence, automotive safety systems and aerospace present opportunities for growth.

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Manufacture of Explosives and Pyrotechnics Industry in South Africa
Manufacture of Explosives and Pyrotechnics Industry in South Africa 2024

Full Report

R 20 000.00(ZAR) estimated $1085.77 (USD)*

Industry Landscape

R 14 000.00(ZAR) estimated $ 761.35 (USD)*

Historical Reports

Manufacture of Explosives and Pyrotechnics Industry in South Africa 2020-02-11

R 1 900.00(ZAR) estimated $103.15 (USD)*

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Manufacture of Explosives and Pyrotechnics Industry in South Africa 2018-11-29

R 1 900.00(ZAR) estimated $103.33 (USD)*

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Manufacture of Explosives and Pyrotechnics Industry in South Africa 2015-10-20

R 1 900.00(ZAR) estimated $103.15 (USD)*

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Table of Contents

[ Close ]
PAGE
1. INTRODUCTION 1
2. DESCRIPTION OF THE INDUSTRY 1
2.1. Industry Value Chain 3
2.2. Geographic Position 4
2.3. Size of the Industry 4
3. LOCAL 6
3.1. State of the Industry 6
3.2. Key Trends 11
3.3. Key Issues 11
3.4. Notable Players 12
3.5. Trade 14
3.6. Corporate Actions 17
3.7. Regulations 18
3.8. Enterprise Development and Social Development 19
4. AFRICA 22
5. INTERNATIONAL 27
6. INFLUENCING FACTORS 36
6.1. Unforeseen Events 36
6.2. Economic Environment 36
6.3. Mining Industry Activity 38
6.4. Crime and Illegal Mining Activities 39
6.5. Labour 40
6.6. Environmental Issues 44
6.7. Technology, R&D, Innovation 45
6.8. Input Costs 46
7. COMPETITIVE ENVIRONMENT 47
7.1. Competition 47
7.2. Ownership Structure of the Industry 48
7.3. Barriers to Entry 48
8. INDUSTRY SUMMARY 49
9. OUTLOOK 51
10. INDUSTRY ASSOCIATIONS 52
11. REFERENCES 53
11.1. Publications 53
11.2. Websites 54
ANNEXURE 1 – Legislation and regulations and authorities 56
APPENDIX 1 - Summary of Notable Players 64
COMPANY PROFILES 67
AECI Mining Ltd 67
Denel SOC Ltd 70
DetNet South Africa (Pty) Ltd 75
Enaex Africa (Pty) Ltd 77
Lion Match Products (Pty) Ltd 79
Maxam Dantex South Africa (Pty) Ltd 81
Nxco Mining Technologies (Pty) Ltd 83
Omnia Group (Pty) Ltd 85
Sasol Dyno Nobel (Pty) Ltd 88
Solar Mining Services (Pty) Ltd 90
Zimco Group (Pty) Ltd 92

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.”

Manufacture of Explosives and Pyrotechnics Industry in South Africa
Manufacture of Explosives and Pyrotechnics Industry in South Africa 2020

Full Report

R 1 900.00(ZAR) estimated $103.15 (USD)*

Industry Landscape

R 1 330.00(ZAR) estimated $ 72.20 (USD)*

Historical Reports

Manufacture of Explosives and Pyrotechnics Industry in South Africa 2024-04-26

R 20 000.00(ZAR) estimated $1087.65 (USD)*

View Report Add to Cart

Manufacture of Explosives and Pyrotechnics Industry in South Africa 2018-11-29

R 1 900.00(ZAR) estimated $103.15 (USD)*

View Report Add to Cart

Manufacture of Explosives and Pyrotechnics Industry in South Africa 2015-10-20

R 1 900.00(ZAR) estimated $103.15 (USD)*

View Report Add to Cart

Table of Contents

[ Close ]
PAGE
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

Introduction

This report focuses on the manufacture of explosives and pyrotechnics. The explosives market is largely dependent on the mining industry, which is slowly recovering from the slump of the past few years. The value of the South African mining explosives industry increased from $12.9bn in 2014 to $14bn in 2017, despite challenging conditions. Demand for more cost-effective solutions has prompted the major explosive companies to become more innovative in their product offerings. This has also opened up opportunities to diversify internationally. As mentioned, the primary market for dynamite is the mines, and the history of this industry is closely linked to that of mining going back to the late 1890s when president Paul Kruger governed the Zuid Afrikaanse Republiek (ZAR), which was given independence by the British after the first Boer War. Much to the irritation of the British, soon after them granting independence, massive gold deposits were discovered on the Witwatersrand which formed part of the ZAR. Kruger saw the opportunity of controlling the supply of dynamite and established the state-owned dynamite manufacturing monopoly with its plant at Modderfontien which dictated the price of dynamite and was effectively another tax on the mining companies. The dissatisfaction amongst the mainly British miners lead to the failed Jameson Raid and later the second Boer War.

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 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 industry is expected to be challenging. With the country in a recession, the mining sector still slowly recovering amidst labour issues and rising input costs, the demand for explosives is expected to be subdued. BME expects tough trading conditions to continue in the South African market and it will continue internationalising its footprint to exploit new opportunities. Companies are expected to continue to improve their products and services to ensure that products add value for customers who are looking for solutions to drastically reduce mine operating costs. BME said that “the recovery and future of the industry relies on optimal value creation at every step in that chain”.

Manufacture of Explosives and Pyrotechnics Industry in South Africa
Manufacture of Explosives and Pyrotechnics Industry in South Africa 2018

Full Report

R 1 900.00(ZAR) estimated $103.15 (USD)*

Industry Landscape

R 1 330.00(ZAR) estimated $ 72.33 (USD)*

Historical Reports

Manufacture of Explosives and Pyrotechnics Industry in South Africa 2024-04-26

R 20 000.00(ZAR) estimated $1087.65 (USD)*

View Report Add to Cart

Manufacture of Explosives and Pyrotechnics Industry in South Africa 2020-02-11

R 1 900.00(ZAR) estimated $103.33 (USD)*

View Report Add to Cart

Manufacture of Explosives and Pyrotechnics Industry in South Africa 2015-10-20

R 1 900.00(ZAR) estimated $103.33 (USD)*

View Report Add to Cart

Table of Contents

[ Close ]
PAGE
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
4.1.2. Regulations 6
4.1.3. Enterprise Development and Social Economic Development 7
4.2. Continental 8
4.3. International 9
5. INFLUENCING FACTORS 10
5.1. Mining Industry Activity 10
5.2. Economic Environment 10
5.3. Government Intervention 10
5.4. Electricity Supply 10
5.5. Technology, Research and Development (R&D) and Innovation 11
5.6. Labour 12
5.7. Environmental Concerns 14
6. COMPETITION 15
6.1. Barriers to Entry 15
7. SWOT ANALYSIS 16
8. OUTLOOK 16
9. INDUSTRY ASSOCIATIONS 17
10. REFERENCES 17
10.1. Publications 17
10.2. Websites 17
APPENDIX 1 19
Summary of Major Players 19
COMPANY PROFILES 24
AECI MINING SOLUTIONS LTD 24
DENEL SOC LTD 27
DETNET SOUTH AFRICA (PTY) LTD 31
LION MATCH PRODUCTS (PTY) LTD 33
MAXAM DANTEX SOUTH AFRICA (PTY) LTD 36
MINOVA AFRICA (PTY) LTD 38
NXCO MINING TECHNOLOGIES (PTY) LTD 40
OMNIA GROUP (PTY) LTD 42
SASOL DYNO NOBEL (PTY) LTD 45
SASOL SOUTH AFRICA LTD 47
ZIMCO GROUP (PTY) LTD 50

Report Coverage

This report describes the current situation in the country, examines the increasingly competitive market and focuses on factors influencing the sector’s success. The report also profiles eleven companies, including Bulk Mining Explosives (BME) which is part of the Omnia Group, and the country’s leading explosives company, African Explosives Ltd (AEL) Mining Services, which held approximately 60% of the domestic market in 2013.

Introduction

This report focuses on the manufacture of explosives and pyrotechnics. The industry supplies explosives mainly to the mining industry. According to Bulk Mining Explosives (BME), the mining explosives and pyrotechnics manufacturing industry is worth approximately R5bn annually. Industrial action in the mining industry combined with lower global commodity prices in recent years had a significant knock-on effect on the industry. To adapt, companies are offering more diverse products and exploring new markets. In particular, the industry’s focus has shifted to the mining industry in other African countries. Environmental and safety concerns as well as technological advancements are key drivers of innovation in this fiercely competitive industry.

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 market is dominated by a few large producers which makes it difficult for smaller companies to enter.

Opportunities

• Growth in the African mining and civil engineering industries which requires explosives.
• There will be opportunities for companies that provide explosives for open-cast mining because of demand for coal from Eskom’s new coal-fired power stations.
• Weakening of the Rand has a positive impact on export earnings.

Threats

• Difficulty to secure an adequate supply of raw materials and the rise of the price of raw materials threatens margins and ability to honour supply contracts.
• 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 civil engineering, construction and mining industries reduces demand for explosives.
• The development of new mining technologies and equipment could reduce the demand for explosives.

Outlook

It is expected that the industry will grow at a CAGR of 5.2% up to 2020, largely due to improved production from coal, iron ore and copper mining activities. Factors such as uncertainty regarding the outlook for the global economy and demand for commodities require companies to be flexible with business models and strategies to adapt to the needs of their clients as well as their operating environments. Industry sources said product innovation and technological advancements, as well as market expansion into Africa and other emerging economies, would provide new opportunities for the explosives industry. Domestic demand for coal is expected to grow in the medium term as Eskom’s new power stations come on-line thus opening up opportunities for explosives for open-cast mining.

Read More..
Manufacture of Explosives and Pyrotechnics Industry in South Africa
Manufacture of Explosives and Pyrotechnics Industry in South Africa 2015

Full Report

R 1 900.00(ZAR) estimated $103.33 (USD)*

Industry Landscape

R 1 330.00(ZAR) estimated $ 72.33 (USD)*

Historical Reports

Manufacture of Explosives and Pyrotechnics Industry in South Africa 2024-04-26

R 20 000.00(ZAR) estimated $1087.65 (USD)*

View Report Add to Cart

Manufacture of Explosives and Pyrotechnics Industry in South Africa 2020-02-11

R 1 900.00(ZAR) estimated $103.33 (USD)*

View Report Add to Cart

Manufacture of Explosives and Pyrotechnics Industry in South Africa 2018-11-29

R 1 900.00(ZAR) estimated $103.15 (USD)*

View Report Add to Cart

Table of Contents

[ Close ]
PAGE
1. INTRODUCTION 1
2. DESCRIPTION OF INDUSTRY 1
2.1. Industry Value Chain 2
2.2. Geographic Position 2
3. SIZE OF THE INDUSTRY 3
4. STATE OF THE INDUSTRY 7
4.1. Local 7
4.1.1. Regulations 9
4.1.2. Enterprise Development and Social Economic Development 10
4.2. Continental 10
4.3. International 12
5. INFLUENCING FACTORS 13
5.1. Economic Environment 13
5.2. Mining and Construction Industries Activity 13
5.3. Government Intervention 14
5.4. Raw Material Security 15
5.5. Uncertain Electricity Supply 15
5.6. Labour 15
5.7. Technology 17
5.8. Research and Development (R&D) and Innovation 18
5.9. Environmental Concerns 18
6. COMPETITION 18
6.1. Barriers to Entry 19
7. SWOT ANALYSIS 19
8. OUTLOOK 20
9. INDUSTRY ASSOCIATIONS 21
10. REFERENCES 21
10.1. Publications 21
10.2. Websites 22
COMPANY PROFILES 23
AEL HOLDCO LTD 23
DENEL SOC LTD 27
DETNET SOUTH AFRICA (PTY) LTD 33
LION MATCH PRODUCTS (PTY) LTD 35
MAXAM DANTEX SOUTH AFRICA (PTY) LTD 37
NXCO MINING TECHNOLOGIES (PTY) LTD 39
OMNIA GROUP (PTY) LTD 41
ORICA MINING SERVICES SOUTH AFRICA (PTY) LTD 44
SASOL DYNO NOBEL (PTY) LTD 46
SASOL SOUTH AFRICA (PTY) LTD 48
ZIMCO GROUP (PTY) LTD 53
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