Hanwha Corp. announced on Aug. 28 that it has recently signed a 10 billion won (US$8.24 million) agreement with an Indonesian mining company to supply industrial gunpowder products.
It has won a total of six gunpowder supply deals worth 27 billion won (US$22.25 million) this year alone. If the current trend continues, its total overseas gunpowder sales are expected to surpass 200 billion won (US$164.77 million) this year, the company said. The figure is nearly 11 times higher than its sales in 2014 when the firm first started the gunpowder exporting business.
Currently, Hanwha Corp. is actively promoting the mining business in Australia and Indonesia. LDE Corp. Australia, which was acquired by Hanwha Corp.'s affiliate in Australia in 2015, expects to see its sales reach 80 billion won to 90 billion won (US$65.91 million to 74.15 million) this year, a dramatic growth from 23 billion won (US$18.95 million) at the time of the acquisition.
The company is constructing an industrial gunpowder production facility with an annual production capacity of 50,000 tons in Western Australia. The plant is scheduled to be completed in 2020. As a result, Hanwha Corp. will be able to manufacture 150,000 tons of industrial gunpowder a year in Australia alone, including output from its existing facilities. It is twice the amount of domestic production.
The latest contract boosted the company's cumulative gunpowder sales in Indonesia to 70 billion won (US$57.67 million). It is also seeking to generate more than 110 billion won (US$90.62 million) in sales a year starting from 2025.
The global mining market is worth US$15 billion (18.21 trillion won) now, showing an annual average growth rate of 2.1 percent. In particular, the market of electronic detonators is growing by more than 10 percent on average and they are replacing existing electric and non-electric detonators.