November 18th, 2020

Enaex signs agreement to acquire 100% of Downer Blasting Services, an Australian rock fragmentation services company

Enaex, a subsidiary of the Sigdo Koppers Group, reached an agreement to acquire Downer Blasting Services, the rock fragmentation services subsidiary of the Australian Downer Group.

The agreement, signed today after a negotiation process that began in July, calls for the acquisition of 100% of the shares of Downer Blasting Services, with an approximate investment of US$ 45 million. The Australian company has more than 20 years’ experience in rock fragmentation services in both open-cut and underground mining, operating along the east and west coasts of Australia, where it provides services for iron, gold and coal mines, among others. Downer Blasting Services has 5 emulsion-manufacturing facilities and 40 mobile units distributed throughout Australia. It reported sales for the fiscal year ended June 2020 of around US$ 110 million.

Downer Group, listed on the Australian Securities Exchange and the New Zealand Stock Exchange, primarily operates in those two countries providing engineering, construction and infrastructure management services. The company employs more than 52,000 people and has been in business for more than 150 years. Downer Blasting Services is part of the mining division of the Downer Group.

The Chairman of the Board of Enaex, Juan Eduardo Errázuriz, commented that “having successfully concluded the process to acquire Downer Blasting Services is a very important milestone for the company. This enables us to continue internationalizing our company, which has entered the mining markets of Brazil, Peru, South Africa and now Australia over the past five years, thereby strengthening our role as one of the three industry leaders,” he added.

Regarding the Australian market, Enaex’s CEO, Juan Andrés Errázuriz, explained how this acquisition will significantly fortify the company’s presence in that country, allowing it to offer comprehensive solutions in that market and broaden the offering to new customers. “Because of Australia’s size (Australia and the United States are the largest mining markets in the world), it boasts significant growth potential. We can contribute extensive knowledge, technology and innovation that we have been developing in the rock fragmentation industry for the mining sector,” highlighted Errázuriz.

The deal is part of Enaex’s strategic plan to strengthen its international presence in the world’s most important mining regions and is subject to authorization from the respective regulators in each country.

Enaex is the world’s third largest producer of industrial grade ammonium nitrate as well as the leading supplier of comprehensive rock fragmentation services in Chile and Latin America. With over 100 years in business, Enaex has 3 ammonium nitrate production plants, 60 service plants at mines and 300 mobile manufacturing units and provides services to the main open-cut and underground mining companies in Chile, Argentina, Brazil, Colombia and Peru, such as Antofagasta Minerals, Anglo American, Codelco, BHP, KGHM, Glencore, Vale, Yamana Gold, Teck, among others. Outside Chile, Enaex currently has a direct presence through subsidiaries in Argentina, Peru, Brazil, Colombia, France, the United States, Mexico, South Africa and Australia, and exports products to more than 40 countries on six continents, including: Argentina, Bolivia, Ecuador, Peru, Colombia, Australia, New Zealand, Japan, Indonesia and South Africa.