Explosive maker and distribution firm PT Multi Nitrotama Kimia (MNK) continues to expand their business with amain target of becoming a leading company in Indonesia, which provides integrated services on explosives. Dharma Djojonegoro, the president director of PT Ancora
Indonesia Resources (AIR) which is MNK’s parent company, told Coal Asia recently that coal mining would continue
to grow and expand in Indonesia. Such growth would be followed by increasing demand on explosives, which offers
new opportunities for integrated explosive providers like MNK to keep expanding in business, also maintain its position as the market leader in Indonesia. MNK plans to become an integrated mining service provider in explosives, starting with the Ammonium Nitrate (AN) production, conducting emulsification and blasting processes, even making AN inventory. So far, MNK has worked on emulsification services in several mines. Dharma said that the company offers reliability and prime customer services to its clients. “There are no other Indonesian company like MNK that offers end-to-end services. We are an Indonesian company. We know how to do business here (in Indonesia). We have the logistics supply chain, production capacity, and certainty in getting the raw material to produce AN as the supplier is one of MNK shareholders, PT Pupuk Kujang,” Dharma said.
Ammonium Nitrate is the main material to make explosives and should be first mixed with fuel oil and processed into ANFO (Ammonium Nitrate Fuel Oil). It is planted underground and used with a fuse. This is what we call a detonator.
At present, the company is building a detonator assembly and a warehouse with 6,000-ton capacity in Pendingin area, Samarinda, East Kalimantan, worth around US$ 2 to 3 million in investment. The construction project is scheduled to be completed later this year. The company’s other warehouses include those in Cikampek (4,000-ton capacity), Marunda (6,000-ton capacity), Jakarta (accessories’ warehouse), and Banjarmasin in South Kalimantan (3,000-ton capacity). In the construction of the detonator assembly, the company has planned to establish a joint operation with some foreign companies which provide the technology. PT Multi Nitrotama Kimia, which was first established in 1987, has obtained the permit to produce and distribute explosives since 1991. The production of ammonium nitrate, which is the raw and main material to make explosives, has been started since 1990. MNK’s first plant, which has the capacity to produce 37,000 tons of AN chemicals a year, made the initial production.
Though the plant produces only 37,000 tons of ammonium nitrate per year, MNK has, however, managed to distribute up to 180,000 tons last year. The company imported the rest of the chemicals to be distributed locally, especially to the coal mining industry.
This year, MNK management is optimistic they would be able to produce an additional 90,000 tons of ammonium nitrate in their second plant, so the total production of both plants would reach 127,000 tons. The second ammonium nitrate plant started its construction since October 2009, and has been on commercial operation since January 2012, with approximately US$ 73 million worth ofinvestment. The fund for the construction project was obtained through shareholders’ deposit, bank loans, and the company’s internal funding, Dharma said.
In building the plant, PT Multi Nitrotama Kimia has appointed a consortium, PT Inti Kaya Persada Teknik, as the company in charge of the construction of the second MNK plant. A holding company in chemical and fertilizer industry has been appointed as the engineering consultant. For its total distribution, MNK has set a target to distribute around 235,000 tons of ammonium nitrate this year, a significant increase compared to last year’s distribution, which was 180,000 tons. “We are committed to providing reliable and timely supply to all our clients,” Dharma said.
MNK currently holds around 45 percent market share of the local explosive industry. There are at least, seven more similar companies competing in the same market in Indonesia, a market which is still wide open. Some of MNK’s major clients include PT Freeport Indonesia, PT Newmont Nusa Tenggara (NNT), PT Adaro Indonesia, PT Kideco Jaya Agung, and PT Asmin Koalindo Tuhup (AKT). “We won new multi-year contracts worth more than $ 100 million last year. Given that we now have a stable and reliable production base in the country,we will continue to sign up more customers to long term contracts.” Dharma said. Besides increasing production and improving services, Dharma said that MNK would continue to improve its human resources to meet the challenge and harsh competition of the global industry.
Nitrate Acid Production
Nitrate Acid’s raw materials are Ammonia and air. Ammonia oxidation in the atmosphere is conducted in a reactor in gas phase. It continues the process passing through the platinum screener, using the technology designed by DM Weatherly (USA).
Ammonium Nitrate (AN) Production
AN’s raw materials are Ammonia and Nitric Acid ( HNO3 ), which are reacted in a reactor pipe to form Ammonium Nitrate with around 85 percent concentration. This process uses the technology designed by Kaltenbach Thuring (France).
MNK works with PT Dyno Nobel, Australia, a prominent company which is also one of the creators of explosives, specifically used in various mines throughout the world. A Non-Electric Detonator (Nonel) assembly plant, is being built in Muara Kembang, Muara Jawa, Handil, East Kalimantan. Nonels can be used either in open mining (Surface Mining), or in Underground Mining such as in gold, nickel, coal and other mineral mines. The Nonel assembly plant is scheduled to work on its first production later this year. And during its initial operation, the plant will produce around 2.5 million pieces of Nonels, which will be increased later to up to six million pieces per year. Some types of Nonels in production are:
• EZTL Nonel is a low-power detonator for surface mining, which is usually used with MS Nonel to create flexible, easy-to-use initiation system to open mining and construction operation.
• MS (Millisecond) Series is a high-power delay detonator. The “28 Series” has the capability to perform with only around 25-1,000 millisecond delay.
• LP Nonel is a non-electric delay detonator in the form of long, yellow, shock tube with a high-power detonator attached on one hand, and a sealed cover on the other.
Emulsion is a type of explosives processed in liquid oxide phase. It is mixed with (diesel) oil in the oil phase, and added with emulsifier to maintain its emulsion phase. Microballon glass or gassing chemical agent is used as the magnifier to create a “hot-spot” phenomenon when it forms very small (down to 0,001 millimeter) oxidation granules/ particles.
At present, emulsion explosives are widely used in detonation process in various mineral mines. The explosives are produced in cartridge packages, and bulk, which could be unloaded into the blast holes using Mobile Mixer Unit (MMU) trucks. For its production, MNK has managed to develop its first “On-Site Plant” (OSP) for the commercial production of the emulsion explosives. The plant, located in Indomura (Central Kalimantan), has the capacity to produce up to 1,260 tons of emulsion explosives a year.
Regular laboratory checks are required to maintain the product quality. Meanwhile, to maintain maximum accuracy on the data, also have more control on the process, MNK uses a computerized control system called Distribution Control System (DCS). As a counter check on their products’ quality control, the company has worked with authorized institutions including PPTM (Mineral Technology Development Centre) in Bandung, and State-Survey Company Sucofindo in Jakarta.
PT Multi Nitrotama Kimia offers various services including providing supporting equipments and services for activities in the field, especially the detonation process in mining locations. The works are handled by skilled workers and professional experts.
Blasting/ Detonation Services
Total Loading and Blasting Services (TLBS) are integrated services in blasting process conducted in mining locations, which cover:
1. Manufacturing explosives (manually or in mobile setting).
2. Loading explosives
• Priming (Installing the detonator and dynamites)
• Loading bulk explosives
3. Filling up the holes with cover materials
4. Installing surface detonator
Down the Hole (DTH)
Is part of the services provided in blasting activities conducted in mining locations. They cover:
1. Manufacturing the explosives (manually or in mobile setting).
2. Loading the explosives into the holes, which works include:
• Priming (installing the detonator+ dynamites)
• Loading bulk explosives
Blasting Technique Consultation (Technical Services)
Is making the estimation on the occurring tremors or effect of the detonation, including following up customers’ complaints against MNK services. They cover:
1. Measuring the tremors and noise as the result of the detonation process and measuring the impact on the surrounding areas local community
2. Detonation/ blasting activity
3. Consultation with clients on safe and optimal detonation process.
Mobile Mixing Unit (MMU)
To secure fast, efficient filling of the drilled hole, MNK provides MMU (Mobile Mixing Unit) which is a mobile setting unit to process bulk explosives at the mining pit. Here, it is mixed with other chemicals/ raw materials the MMU carries.
To secure the supply, MNK is actively involved in trade activities for Ammonium Nitrate (AN) and other products including the accessories and other support equipments, related to the blasting services. The company also works with related, reliable suppliers in the field.
Ammonium Nitrate Fuel Oil (ANFO) is the only one of many materials of explosives, which largest component is AN mixed with fuel oil. Based on research, mining experts tend to use ANFO due to its safe and economical characteristics.
Compared to other materials for explosives, ANFO is categorized as drybasis for either underground or open/ surface detonations with the hole’s diameter between one and 12 inches or larger.
Types of accessories of explosives traded by MNK cover; Dynamite, is a type of explosives that can explode only by using a detonator. This type is used to detonate bulk explosives (ANFO, ANFO+ emulsion). Examples: Powergel Magnum 3151, Powergel Magnum 365, booster. Detonator is a bullet shell container with explosive fillers (PETN) which functions in the initial ignition process. Examples: electric detonator, nonelectric detonator, electromagnetic detonator (ICON).
Nitrate Acid is the raw material for Ammonium Nitrate, also to be used as organic synthesis (dyes, nitrate cellulose, polyurethane, and metallurgy (steel etching and picking). Specification: Strength 60% minimum; Oxide 0.01 percent, maximum dissolved (as NO2)
PT MNK continues to develop ammonium nitrate and its derivatives, including by starting to produce the type of emulsion that would become MNK’s high-quality products.
Is a type of explosive which components are not classified as explosives. However, if these components are mixed in certain weight and compositions, they will become explosives.