Titanobel was acquired by Incitec Pivot this year. Could you comment on the rationale behind the transaction?

We completed the acquisition at the end of April 2022, incorporating Titanobel within Dyno Nobel Asia Pacific, a division of Incitec Pivot Limited (IPL), which is listed on the Australian Stock Exchange. The acquisition of Titanobel came at an opportune moment as IPL was actively seeking an opportunity to participate in the EMEA region, complementing its footprint in the Americas and Asia Pacific. As an independent drilling and blasting player with a significant regional presence, particularly in West Africa, Titanobel stood out as an attractive target and the transaction was concluded relatively quickly. The transition from a privately-owned company to becoming part of a listed entity was a significant one for Titanobel, which joins a dedicated mining explosives player with a truly global presence.

Could you elaborate on the synergies created and your growth strategy for the African market?

Historically, Titanobel’s customer base has mostly been in the quarries and civil construction sectors, while Dyno Nobel Asia Pacific predominantly services mining clients. Titanobel’s footprint is centred on France and Africa, where Dyno Nobel did not have an operating presence in this region. With the acquisition, we are now well-placed to tap into a prolific mining region combining Titanobel’s well-established brand and footprint with Dyno Nobel’s mining know-how and technologies. We intend to utilise the existing business reach of Titanobel and then expand into new countries as opportunities arise.

How will Titanobel differentiate itself in the market from a technology perspective?

Titanobel’s ongoing research has been integrated into Dyno Nobel’s wider R&D program and technology portfolio, including an in-house electronic detonator (DigiShot® Plus 4G) and sophisticated TITAN® bulk emulsion formulations incorporating our Differential Energy, ΔE and ΔE², technologies. ΔE is designed to load an ammonium nitrate emulsion at a single low density, and ΔE² can customize the density of the emulsion within the hole, thereby meeting the specific energy requirements of the ore body. Such technologies enable enhanced blast outcomes as well as greater efficiencies in terms of the consumption of ammonium nitrate used. These factors therefore drive substantial savings as well as making lower-grade ore bodies more accessible.

Could you explain how pressures on raw materials availability and costs are impacting the blasting business and how is Titanobel overcoming these challenges?

We have seen that the price of ammonia has increased significantly, driving up the price of explosives. This affects the entire global blasting industry, almost without exception. By leveraging our networks and robust supply chains, we have been able to maintain our continuity of supply to our customers in these difficult conditions.

Dyno Nobel sources or manufactures ammonium nitrate at various points in the supply chain, either buying gas or ammonia and converting it to ammonium nitrate at our own facilities, or sourcing ammonium nitrate across the globe. We are thus well-placed to continue to support those customers within our diverse footprint.

With the ongoing focus on sourcing, digital technologies (including electronic detonators) facilitate the reduction, or improved efficiency, in the use of ammonium nitrate. Historically, there was significant wastage of ammonium nitrate, particularly when pneumatically loaded. Figures of up to 15% waste were frequently quoted. Today, the use of pneumatically loaded ammonium nitrate is increasingly rare, with consumers having switched to bulk emulsions that have the potential to eliminate waste, when used correctly, and have the added benefit of reducing the environmental impact of the use of ammonium nitrate.

Given the global challenges, ammonium nitrate can no longer be treated as a commodity, and Dyno Nobel has the technologies available to increase the efficiency of blasting, reduce costs and limit the environmental impact associated with wastage.

What are your main objectives in the next one to two years?

We have an exciting journey ahead in the near to medium term where we need to complete the integration of Titanobel into Dyno Nobel and finalise the adoption of the Dyno Nobel technologies within the existing footprint. Concurrently with these activities, we will continue to develop our exposure to the markets identified and look forward to presenting our value proposition to the customers in these areas.