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December 23, 2020

NEWS / edition 09

JUAN ANDRÉS ERRÁZURIZ
CEO ENAEX

We are already closing 2020 and it is inevitable to review the events of the year. I have no doubt that we will all talk about the COVID-19. No organization in the world was detached of this pandemic. For our Company, it has not been easy either. In some countries, restrictions were enacted for extended periods which undoubtedly affected our global results. Also, the production and export of ammonium nitrate had to be adjusted. However, most of the teams optimized their processes and although we did not manage to meet our 2020 budget, we came very close thanks to the commitment of all of you.

Undoubtedly, our great victory has been the preservation of our teams. Up to this day, we have not had any virus-related deaths to regret and we have only had a small number of positive cases. The implementation of prevention measures has been truly extraordinary and efficient in all the places where we operate.

But this year was much more than fighting this disease and the sustainability of our business. In this centenary, our company has taken important steps to materialize our dream, starting to operate in the most relevant mining regions of the world. On July 1, we began operating in Africa, the third largest market in terms of explosives consumption, which represents significant growth potential. In addition, last month we signed an important agreement to acquire Downer Blasting Services, which will allow us to consolidate Enaex’s presence in Australia, completing the full range of mining services in one of the largest markets in the world.

Humanizing mining can only be achieved by being the leaders in the industry, setting the course, bringing new technologies. Today, we can say that our dreams are not vain words, our dream is high-quality work that each one of us does from our field of action, obtaining a great result that today can already be glimpsed and that brings us closer to the first places of leadership in the world industry. Today, I want to tell you that I feel very proud of the great team that I have the privilege of representing and that I only have words of gratitude for each one of the members of the Enaex family.

I wish you a happy New Year’s Eve and that together we have a prosperous 2021!

News

Because together we build history, we invite you to review some Enaex’s news.

GLOBAL
Enaex signs agreement to acquire 100% of Australia’s Downer Blasting Services

In line with the strategic plan to strengthen our international presence in the world’s most important mining regions, Enaex reached an agreement to acquire Downer Blasting Services, the rock fragmentation services subsidiary of the Australian Downer Group. This, also, will help to consolidate our company in one of the biggest market in the world like the Australian.

The agreement, signed on November 17 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.

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.

GLOBAL
Enaex stressed again in the Dow Jones Sustainability Index

For the fifth year running, Enaex has been included in the Dow Jones Sustainability Index (DJSI), which tracks the stock performance of the world’s leading companies in terms of economic, environmental and social criteria for 61 industry areas globally.

The company placed 20th in the Chemical Industry, improving 7 places in relation to 2019. Regarding the criteria, Enaex scored more than 80% in the three categories, averaging 83% in total and increasing 15 percentage points versus last year.

This result is line-up with our company’s values and objectives, such as the social development of the communities where we operate, being committed with the environment and managing our business in a responsible and sustainable way.

Thank you very much to all the collaborators for making these great achievements possible!

BRAzIL
Enaex Britanite receives Anglo American’s award for Safety and Sustainability

Enaex Britanite won the Outstanding Supplier Award 2020 IOB in two categories: Safety and Sustainability. Anglo American’s award is one of the most prestigious in the mining industry. It is awarded according to optimization and sustainability of technical and operational performance in safety, environment, health, human resources and relationship with communities. We are very proud of this achievement, especially given our company’s key values and the current scenario.

aFRICA

Introducing the Enaex Africa Corporate Social Investment Program

Enaex Africa has a well-established Corporate Social Investment (‘CSI’) Program that delivers shared value to communities surrounding Enaex Africa’s production plants and customers mining sites.

Enaex Africa is proud to be a responsible South African corporate citizen that delivers shared value to our customers and communities through  social investment, whilst at the same time ensuring that we also manage our ‘license to operate’ requirements, which also includes complying with the Broad Based Black Economic Empowerment Act (BBBEE Act). This is a governmental integration program to reconcile South Africans and redress the inequalities of Apartheid.

To share highlights for 2020 in terms of some of the exciting initiatives that Enaex Africa has brought to life:

School Infrastructure Program: A partnership with United Manganese of Kalahari.

This CSI project helps to improve the offerings by the Department of Basic Education (DBE) through its Nutrition Program, to ensure that nutritious meals can be served at schools in a safe and hygienic environment, and is a partnership between Enaex Africa and our mining customer United Manganese Kalahari.

Kudumane Primary School, Mothibistad in the Northern Cape was selected to receive brand new facilities for the nutrition program. In the past, meals at Kudumane School were prepared in makeshift facilities due the lack of infrastructure.

The school will receive a facility, which will cater for 224 learners seated, and doubles as a meeting room for the school. An additional building to be used as The Lego room designed to provide support towards cognitive learning in the school, which is enhanced through Care for Education training. The program aims to foster better quality education by enhancing children’s active learning capacity, alleviating short-term hunger, providing an incentive for children to attend school regularly and punctually; and addressing certain micro-nutrient deficiencies.

Covid-19 Support for the Rustenburg communities

Enaex Africa partnered with the Rustenburg Community Forum to support 5 local schools and social institutions with covid-19 essentials to assist in mitigating the spread of Covid-19.

Enaex’s support includes the provision of facemasks, sanitizers, and non-contact infrared Thermometers. To expand the beneficiary value chain, Enaex used a local supplier to manufacture facemasks to contribute to local economic development.  This support has been welcomed by the 5 beneficiary schools, and community leaders as the prevention of new infections is now a priority as we approach the holiday season in South Africa.

Capacity Building Program for fence line communities in Mpumalanga.

The main purpose of the Capacity-building program is to develop and strengthen the skills, instincts, abilities, processes, and resources that communities need to survive, adapt, and thrive in a fast-changing world.

Enaex Africa is supporting two youth organizations neighbouring our operations in eMalahleni (Witbank) and Weilagte in Delmas by proving the necessary tools and equipment (computers, printers etc) to these groups. This support will enable these youth groups to organize themselves and address issues on employment, entrepreneurship, and social advancement by being able to have access to a computer and e-mail to apply for jobs. Something basic that is often taken for granted but is a major obstacle for the poor to be able to access the job market and fight poverty.

By making these basic resources and skills development available to the unemployed and out of school youth, Enaex can help these young people to upskill themselves and stand a better chance of escaping poverty.

FRANCE
Héry moves towards Industry 4.0

Driven by the emergence of new technologies, Industry 4.0 today refers to a new generation of connected robotic and intelligent factories. With the digital revolution, the boundaries between the physical and digital world are shrinking to give life to an interconnected 4.0 factory in which people, machines and products interact. This is a challenge and a real opportunity for all the players in the Enaex group and it is in this direction that the Héry plant (France) wishes to move on today.

The business project was launched with a 2-day seminar were 20 people of the management team participated, including Esteban Fisher (VP E3A). As a result of these creative and productive discussions, our factory action plan, gathering around 50 potential workshops, is broken down into the following themes: Economic Performance & Operational Excellence, Well-being & Safety, Customer satisfaction and Environment.

A monthly steering committee has been created, meeting to deploy and coordinate the various current and future projects in all sectors of the company. To illustrate with concrete applications, the following first projects started:

  • Ergonomics at workstations thanks to support systems for handling and deployment of Karakuri systems, a concept from Japan aimed at improving working conditions and productivity.
  • Flexibility of our manual assembly lines by designing a multi-product pilot line, capable of assembling our main product families through quick tooling changes.
  • Start-up synchronization at the production station in connection with the qualification of the operator in direct connection with the skills of our employees.
  • Automated supervision of our production lines, reporting their performance indicators in real time
  • Dematerialization of our production and maintenance documentation to optimize the efficiency of interventions and their follow-up

This new approach necessarily relies on strong support from the Human Resources department to support this change and on a new vision of our environmental strategy (recycling of energy and wastewater, etc.), in order to limit the impact of our activity as much as possible on our planet.

CHILE
Enaex starts 3 new contracts with Compañía Minera del Pacífico

A highlight of this year has been the beginning of an excellent relationship with Compañía Minera del Pacífico (CMP), which begun in the third trimester with El Romeral Plant for the launching of the Fase V Norte project in the mine. Along the months goes by, this partnership has strengthen and by late November and early December three new operations starts their work.

Pleito Plant, Los Colorados and Cerro Negro Norte, after a quick and effective activation, the teams are carrying out their duties and providing solutions of exceptional value. Now, Enaex counts with 4 tasks with the main producer of iron ore in Chile and America Pacific Coast, reaffirming the trust that CMP has in our blasting services.

A huge recognition to everyone who helped with the launchings and the best wishes to the employees!

PERu
First 100% aerated emulsion bast in La Zanja Mine

First 100% aerated emulsion bast in La Zanja Mine

November 27 was a special day for Enaex Peru. On that day it was celebrated the first blast in the La Zanja mine operations, where was only used aerated emulsions.

This important milestone was achieved thanks to the coordinated work between Operation and Production Managements of Enaex Perú, who assumed this challenge after the operations of the mine was adjudicated. This emulsion was developed in Cachimayo Plant and later manufactured in Vegueta Plant.

This is a big step for Enaex Peru to become one of the key actors in the competitive Peruvian market!

BRAzIL
With an interactive virtual booth, Enaex Britanite stands out at EXPOSIBRAM 2020

Aligned with the current reality, Enaex Britanite set up a virtual booth at EXPOSIBRAM 2020, jointly with Magotteaux, another SK Group company. The experience enabled visitors to watch a blasting operation 360 video, consult Enaex’s product catalogue – including our innovative Plasma, and check our capillarity through our strategic locations throughout Brazil. Enaex’s 100th anniversary was the central theme of our booth at EXPOSIBRAM, where we could offer visitors a deeper look at our company’s history.

CHILE
Enaex wins Most Innovative Company award in Mining Industry Services category

Enaex placed 1st in the category Mining Industry Services and 5th in the overall ranking of the Ranking Most Innovative Companies Chile 2020. This award endorse the huge and efficient daily collaborative work made by the different areas of the company to provide world class solutions to our customers.

This ranking is elaborated annually by ESE Business School in collaboration with El Mercurio newspaper and MIC Innovation. For the election, each company is evaluated in their policies, process and procedures, which create the innovative company and how they affect in the company results.

Congratulations to everyone who made this achievement and helps us to reach excellence through the highest technological and innovation standards!

BRAzIL
Enaex Britanite earns ISO 14001:2015 environmental certification

Our Distribution Center in São Paulo is Enaex Britanite’s first unit to earn the ISO 14001:2015 Environmental Management System Certification. This demonstrates how Enaex’s procedures and operational control are aligned with our industry’s best environmental practices. This great achievement is the result of teamwork and commitment of each of our departments, as well as the support of our managers and directors. This milestone in our history reaffirms our commitment to Enaex’s purposes and values.

 

 

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