Maxam Civil Explosives

MAXAM Civil Explosives (CE) is a worldwide leader in the manufacturing and distribution of commercial explosives and accessories for the mining, quarrying and construction industries. The company has earned a reputation for knowledge and experience and providing cutting-edge technology to optimize blasting programs for a variety of clients. It continues to raise the bar on industry research and technical innovation through formulations and patents such as HEF® / RIOMEX® and EMGEL® / RIOHIT® bulk and packaged emulsion products.

MAXAM CE operates in more than 45 countries, exporting and marketing its products and services to more than 100 countries worldwide. With five major business units – civil explosives, outdoors, defense, chemicals and energy — the company ranks third among the leading global explosives suppliers and second in terms of geographical locations and access to mining and construction markets.

Established in 1979, Salt Lake City-based MAXAM North America (NA) is part of the MAXAM Civil Explosives division of The MAXAM Group, which has been manufacturing explosives since 1872.

“MAXAM worldwide would definitely be considered a market leader,” according to President and CEO Germán Morales. “MAXAM North America – being relatively new as compared to its history as an explosives supplier globally – could be considered an emerging player except where MAXAM’s Mining Services International group had previously operated. With significant operations in the southern British Columbia coal mining district, as well as operations in eastern Canada, eastern U.S. and headquarters in Salt Lake City, Utah, MAXAM NA is well-positioned to emerge as a strong and definitely as an alternative supplier in this region.”

In an interview with Energy & Mining International, Morales discussed key criteria that set the company apart from its competitors and enabled it to grow and succeed throughout the global recession.

Energy & Mining International: What would you say are the main factors or components of the company that set you apart from competitors?

Germán Morales: One would have to say a key differentiator has to be experience. With roots all the way back to Alfred Nobel, MAXAM has been developing and manufacturing products for decades. Through investment of state-of-the-art plants, technology and product research, MAXAM has established some of the most reliable initiation products to bulk emulsion and water gel technologies.

We would think that the experience of our people is probably the most significant differentiator. We operate in all areas of the world, in all types of conditions, from Siberia to the Sahara, Canada to Australia. The various explosives applications and skills of our people are vast and we believe set us apart from others.

We also have a proven record of understanding the global logistics and challenges in operating and supplying explosives in remote locations of the world. Again, our people make that happen and are committed to the customer. We believe that what really sets us apart is our keen sense – and commitment – of local “customer care” with a “global reach” for helping our customers wherever they may need us.

EMI: What are some new industry trends, developments of issues affecting MAXAM?

GM: In many of the mining markets today there is an issue with finding, training and retaining key employees especially when you are competing with all other suppliers and mining operations for the limited resources. Since MAXAM is always concerned about the health and safety of our employees and spends a significant amount of time and money training employees, competing for personnel resources is a challenge.

There’s also a trend or rising challenge to provide blasting products and services in more and more remote areas of the world. As the new ore bodies are discovered, they seem to be much farther from existing infrastructures and the logistics associated with supplying high explosives become a major part of costs. Increased regulations and security concerns also continue to increase the level of cost and complexity to supply customers.

EMI: How has MAXAM adapted to the struggling economy?

GM: As a global company, the world economic crisis and drop in construction has definitely been a major challenge for us. Diversification of our business into different market segments and expansion into other countries has helped to offset the impact. A constant effort at containing costs and promoting operational efficiencies in all areas to improve productivity and lower costs has allowed MAXAM to pass some of these efficiencies on to our clients and improve their positions.

During the last years, we have consolidated our global presence in the main mining and construction markets – or through key investments – which assure the supply of strategic raw materials for the group. We will continue with this process as the results during the recent economic crisis have proven their success. MAXAM also has a challenge finding and transferring people to remote areas so we focus on finding and training local people as much as possible.

EMI: What are some new developments the company is undertaking?

GM: With the significant growth that MAXAM has seen in very recent years and the expansion of sites and number of resources, it has been recognized that information sharing and learning from others will be a key part of our success going forward. This takes new tools and information platforms that are being developed to ensure everyone in the organization has access to the same information and methodologies to succeed.

The formal name for this project is called DOFICE. DOFICE is an acronym that represents the process of developing best practices throughout the organization and sharing those best practices with everyone to ensure the highest degree of efficient business operations. These new tools and communication platforms will be intrinsic to MAXAM’s business process going forward. We’ll be able to better share critical information, best practices, key performance indicators and routinely provide the best possible solutions for our customers by leveraging our global teams of expertise.

EMI: How important is creating and maintaining strong relationships with your supply partners who help you with your day-to-day operations?

GM: In our business, and with the extreme pressures of logistics and quality, a good working relationship with our suppliers is critical. MAXAM has always tried to maintain a strong relationship with our suppliers as they play a key role in assuring our competitiveness and success in the explosives industry.

EMI: In what way do they play a part in your strategic supply chain?

GM: There are numerous joint initiatives that we’ll work on with our suppliers to develop new products, improve specifications and overall performance of existing ones. Whenever possible, and while maintaining customer confidentiality, we’ll share as much information as possible about projects we’re working on or issues in order to shorten the value chain and help reduce time and costs.

EMI: What are some of the factors that go into deciding which suppliers/partners you go into business with?

GM: One of the primary factors that will influence our decision is the commitment to the same health, safety and environmental values that we have within MAXAM. There must be a strong sense of commitment to these values to service our industry. Naturally, pricing and the ability to provide competitive offerings are a key part of our decisions.

A key deciding factor for many of our suppliers will be their ability to provide technical support or project support. We are proud to be working with several world class suppliers at MAXAM and would like to thank them for their team approach to solving issues and helping to keep us competitive.