Multi Nitrotama Kimia – Growing and Serving with values

With a good, proven corporate values and practices, PT Multi Nitrotama Kimia has established itself as Indonesia’s leading trader and producer of ammonium nitrate, as well as a solution provider in explosive services for mining companies.

As a domestic company,PT Multi Nitrotama Kimia (MNK) is known today as a company noticeably from other firms not least due to its pioneering innovations and technical expertise in mining services for miners, but also because of its corporate culture and governance. Good corporate values and practices have also transformed the figure of MNK as true solution provider in the mining sector, the company’s President Director Dharma Djojonegoro said.“There was the time for MNK known as a producer of a trader and producer of ammonium nitrate(AN), an essential explosive material used in mining activities, but nowthe company has transformed as asolution-oriented company offering various integrated services to mining companies,” he said He added with a 26-years experience, MNK had established itself as a prominent company with competitive strengths and advantages. “Mining explosives is a high barrier-to-entry industry, protected by regulations and limited feedstock.And here we are. As a domestic firm, we have successfully demonstrated MNK a reliable company, in which the company holds a critical and integral part of the mining value chain for big players in the mining sector in Indonesia,” he said.MNK, he added, was unrivalled with more than two decades ofexperience in its business line,supported with proven technology.

Business lines

Incorporated in 1987, MNK was granted to produce and distribute explosives since 1991. The production of ammonium nitrate, which is the raw and main material to make explosives, began in 1990. Ammonium nitrate is the main material to make explosives and should be first mixed with fuel oil and  processed into ANFO (AmmoniumNitrate Fuel Oil). As a detonator, it isplanted underground and used with

a fuse.In addition to AN, used as one ofthe raw materials to open mining areasby mining companies and contractors, MNK also makes nitric acid (NA), the raw material for AN, also used for the production of organic synthetics (dyes, nitrate cellulose, polyurethane)  and in metallurgy (steel etching, pickling) In trading, MNK’s business include AN, emulsion, which is a derivative of AN product, generally used for blasting activities on wet lands; and accessories for explosives including dynamites, detonators and bulk explosive. “The company is equipped with an American technology to in NA production and French technology in AN production,” said Dharma Djojonegoro. In addition to explosives and accessories supplies, MNK also offers on-site blasting services at the mining areas. This is part of the integrated mining service of the company. Other services include down-thehole (DTH); blasting consulting and technical services; and mobile mixing unit. The latter is a mobile setting  unit to process bulk explosives at the mining pit. The company has now maintained itself a key provider of explosive services for mining companies. Today MNK is servicing most of the big mining companies in the country “In recent years, MNK is known as a total-solution provider. We are not only producing or trading AN, but extending solution-oriented services for its customers,” said Commercial Director Alex Djajadisastra, adding the company was like a one-stop service operator in the mining sector. He added that in ammonium nitrate production, MNK is the market leader if the Indonesian AN market, servicing leading miners in the country.

Facilities and services

The company has completed a second facility, increasing annual production capacity to 140,000 metric-tons and ensuring supply reliability; which has boosted MNK’s competitive strength and advantage. The company also has a comprehensive supply chain network to guarantee AN supply reliability to its customers across the archipelago. “In term of feedstock security, MNK has secured long term supply of ammonia, the critical feedstock in AN production from PupukKujang until 2018,” said SaptoAriyono, the company’s Technical & Production Director. As a company now also focusing on solution, MNK provides integrated and customized end-to-end services to the mining companies. It 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.

The Jakarta-based company has an extensive array of blasting accessories and is currently upgrading supply capability through an integrated explosive center. MNK has a number of facilities producing nitric acid with a capacity of 150,000 metric tons and ammonium nitrate 140.000 metric tons, respectively. The company has as well a warehouse in Samarinda and another production facility in Cikampek of West Java, with a total capacity of 12.000 metric-tons of AN and in Marunda (6,000-metricton capacity). There are other facilities located in Jakarta (Handil, East Kalimantan) (accessories’ warehouse), and Banjarmasin of South Kalimantan (6.000 metric-ton capacity). To improve the image of MNK as an integrated mining service provider, the company is now constructing a detonator assembly plant in Handil, East Kalimantan. “Completion is scheduled in October this year. The facility will have a capacity of 3 million pieces per year,” said Alex Djajadisastra.

Values and practices

MNK has so far been enjoying the good opportunity, enabling it to take advantage of the robust growth in the mining sector in Indonesia. The company currently controls over 30 percent of the country’s market share for explosive materials. The company will continue with its expansion plan to meet the rising demand for explosives, in which the domestic demand is expected to reach 600,000 metric tons this year with growing rate at an average of 7 percent annually. However, since the company now also focuses on solution and integrated services, MNK has also prepared improved human investment  or personnel in the services and operational units. The transformation has also been taking place internally, underlining the company’s corporate culture and governance. “That’s why, in addition to increasing production and improving services, MNK will keep on improving its personnel to meet the challenge and harsh competition of the industry,” said Dharma Djojonegoro. MNK employs over 500 personnel. As the company is committed to providing reliable quality delivery and service with continuous focus on safety, it’s important to improve and develop the human resources and company’s values and good practices.“Maintaining the values and practices and developing them in a sustainable manner is extremely important to us. After all, long-term success can only be built on strong corporate cultural basis,” said Dharma Djojonegoro. He added that MNK now applies five guidelines for the personnel to maintain the company as a prominent firm in Indonesia. “This is for good corporate culture and governance. The five guidelines include care to the company; good teamwork; customer focus; solution oriented; and continues excellence,” hesaid. He added MNK had standards or values, an essential part of the company“ By applying values in what we practice as a corporate, we create and maintain a healthy corporate culture, so MNK will stay as a leading firm with world-class capabilities and talent, he said, adding that the company was always proud as the part of the growth of the mining sector in Indonesia.

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