AECI buys Indonesian chemicals concern for $23m

By Demas Simbolon

AECI has acquired a 42 percent shareholding in an equity partnership with PT Black Bear Resources Indonesia (BBRI) for a consideration of US$23 million. BBRI is constructing a nitric acid plant and an ammonium nitrate solution plant in Bontang, East Kalimantan.

In line with its internationalization strategy, AECI subsidiary AEL Mining Services (AEL) entered the Indonesian market in 2009. Significant sales volumes were achieved and AEL rapidly became the second largest supplier of explosives to that market. In-country access to a secure source of ammonium nitrate will assist in sustaining AEL?s growth trend in the region, AECI said in a statement.

The BBRI partnership is the first phase of a potential future AECI investment program for the growing South East Asian mining services market, it added.

AECI is an explosives and specialty chemicals company domiciled in South Africa. Group businesses service the mining and manufacturing sectors both locally and internationally. The focus for growth is on Africa, South America and South East Asia.

In the last five years the group has invested 2 billion rand in a strategic capital investment program to enhance its future growth in the mining and manufacturing areas, with particular emphasis on mining chemicals and initiating systems.

Editing by Reiner Simanjuntak