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DFPCL, through its subsidiary STL, announces its Australian Mining Services Venture
Pune (5th Sept, 2014):Smartchem Technologies Limited (STL), a subsidiary of Deepak Fertilisers and Petrochemicals Corporation Limited (DFPCL), India’s leading manufacturer of mining chemicals, as a part of its forward integration initiative, announced the launch of its overseas venture for Mining Services in Brisbane, Australia.
STL has set up Platinum Blasting Services Pty Ltd (Platinum), a joint venture with local Australian partners, who have vast experience in providing value added blasting services and operation expertise to the mining and explosives industries in Australia. STL will hold 65% while the local partners will hold 35% in the joint venture. The local partners collectively bring over 80years of domain knowledge to the venture.
Over the next two years, Platinum intends to make an investment of around AUD 28 mn, through a mix of debt and equity. Australia, which is an approximately 2 million tons per annumof expanding TANmarket, will offer immense growth potential to Platinum. The company plans to develop a full service offering including:
· Technical Ammonium Nitrate (TAN) supplies
· Storage and logistics
· Manufacturing of Emulsion
· Blast design and technical support
· Down-the-Hole services
“With over three and a half decades experience and as globally 5th largest manufacturer of TAN, reaching out to matured global market, especially Australia is a natural and logical forward integration strategy. Apart from supplying TAN to this growing market, we intend to create an expertise in providing value added services and be an integral part of the Australian mining industry” mentioned Mr. Sailesh Mehta, CMD, DFPCL.
“Australia is the 2nd largest regional consumer of explosives in the world; its share is about 13% of global Explosive Grade Ammonium Nitrate (EGAN) demand. Coal mining is the largest EGAN end-user in Australia, where most of coal production is represented by open pit operations. Our expansion into Australia will help acquire and bring knowledge from this matured market into India.” stated Mr. Carl Anderson Lindgren, President TAN Business, DFPCL
“DFPCL not only brings its experience and knowledge as a leading TAN producer to Platinum, but it also brings along its core values of quality, safety, health and environment management which fits very well with the standards of the Australian market.”Cliff Gale, CEO Platinum Blasting Services.