Enaex chases North American deals as mine-blasting demand grows
Chilean industrial conglomerate Sigdo Koppers said it is scouring the market for acquisition targets in North America to grow its share of mining explosives as deteriorating ore grades push up demand for blasting.
The group’s Santiago-listed explosives unit, Enaex, has built up a large presence in Chile, Brazil and South Africa, and is now looking to expand its small share of the US market and set up shop in Canada, with acquisitions of established local firms an attractive option in what is a highly regulated industry. The company is also looking to grab more market share in Peru and Australia, challenging leaders Orica and Dyno Nobel.
“We’re looking for targets” in North America after hiring specialists to map out the market, CFO Pablo Busquet said in an interview. Enaex typically selects local players with about a 10% market share, he said.
Greater North American penetration would complete Enaex’s global footprint after a decade of growth from what was predominantly a Chile-focused firm. Today, more than half its sales come from outside of Chile, with the company turning to customized solutions that include automation. Demand is growing as part of an industry trend of deteriorating metal concentration at aging deposits, which means more rock has to be blasted. That’s as new mines get trickier and pricier to develop.
Deal financing could come from debt markets, where the company recently sold sustainability-linked bonds, as well as other kinds of credit, or even a capital raise, Busquet said. Part of Enaex’s green credentials come from a hydrogen venture in northern Chile and a project in Peru where it plans to make fully green ammonium nitrate for the mining industry, he said.
Comments
Research Reports
Projects
Latest Multimedia
Latest News
Showroom
Klüber Lubrication ensures that the world’s essential systems—drive units, machines, and water flow—operate efficiently, sustainably, and reliably...
VISIT SHOWROOM
South African leader in Steel -Racking, -Shelving, and -Mezzanine flooring. Universal has innovated an approach which encompasses conceptualising,...
VISIT SHOWROOM
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
