Dyno Nobel Explosivos
Chile
Successful Case InvestChile – CORFO
Objectives and Scope
 Share the experience of the participation of Dyno
Nobel in Investment Attraction Program of CORFO,
InvestChile.
2
Agenda
 Background Dyno Nobel
 Austral Project Dyno Nobel
 Conclusions and comments
3
Agenda
 Background Dyno Nobel
 Austral Project Dyno Nobel
 Conclusions and comments
4
Dyno Nobel - Origin

Company with more than 150 years of
history.

Its origin dates back to the invention
of dynamite and the detonator made
by our founder Alfred Nobel.

Alfred Nobel was the promoter of the
Nobel Prizes each year since 1901 are
awarded to people who have made
outstanding contributions to society
in the areas of Literature, Physics,
Chemistry, Medicine, Economics and
Peace.
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Dyno Nobel – Recent History

Dyno Nobel was purchased in 2008 by Incitec Pivot Limited (ASX –
IPL) an ASX Top 50 company. Incitec Pivot is a chemical
manufacturer supplying agricultural fertilizers and industrial
chemicals for Australian and international markets.
IPL Share Price (AU$) - XJO
Boosters & Packaged
2%
Dynamite
4%
IS
11%
AN
29%
Other
3%
Fertiliser
51%
Source : www.asx.com.au
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Dyno Nobel – Who Are We?

Dyno Nobel is a leading supplier of industrial
explosives and blasting services to the
mining, quarrying, seismic and construction
industries.

Dyno Nobel is the market leader in North
America – the largest explosives market in the
world – and the second largest supplier in
Australia – the third largest explosives market
in the world.
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Dyno Nobel – Where Are We?
Dyno Nobel has a leading position in the largest markets globally and
has started to enter other high growth markets
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Dyno Nobel – Our Products
Explosives and Inition Systems
Complete Shot & Blasting Service
ANFO
Titan® Bulk Emulsions
Packaged Explosives
NONEL ®
Blasting Engineering - continuous
improvemen
Electronic Detonator
Electric Super
Primacord ® & Primaline ®
Trojan ® Cast Boosters
Oil & Gas Explosives
Seismic Explosives
Rock Fragmentation Consulting
(Productivity, cost and safety improvement)
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Dyno Nobel – Where Are We Going?

Dyno Nobel is renowned for its
excellent safety performance and as
a provider of innovative explosive
products and services, which
together deliver groundbreaking
performance for its customers.
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Dyno Nobel – Our Resources

Dyno Nobel employs more than 3,000
people.

Dyno Nobel has 34 manufacturing
facilities in Australia, Canada, the
U.S., Indonesia, Mexico, South
America, and Papua New Guinea.

Dyno Nobel has the capacity to
produce over 1 million tons of
ammonium nitrate annually.
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Agenda
 Background Dyno Nobel
 Austral Project Dyno Nobel
 Conclusions and comments
12
Dyno Nobel – Austral Project

Part of the strategic plan reentry into high growth markets.

South America is the fastest
growing mining region in the
next 8 years.
Projected South American Metals
Mining Investment (2009 – 2017)
US$B
Fuentes : CORFO, ABARE
13
Dyno Nobel – Austral Project

The first major investment of Austral
Project is the installation of a initiation
system plant (detonators) by industrial
explosives.

Location and amounts investment
the plant conditional on:





of
Regulations and incentives for foreign investment.
Legislation on the control of explosives.
Logistics and connectivity vs. target market.
Availability of labor.
Climatic conditions.
?
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Dyno Nobel – Austral Project

Investment ~ MUS $ 4 in the Region of Coquimbo Chile.

Safety standards and quality control "outstanding."

Manufacture of pyrotechnic detonators, 1 million und / year.

First manufactures electronic detonators in LA: 500 000 und / year.
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Dyno Nobel – Austral Project
Investment Promotion Programme in
High Technology
Objective
Support investment decisions in high-tech regions (associated with clusters,
IT, Biotechnology, etc..).
What is?:
Co-financing is non-refundable pre-investment studies, training human
resources, investment in fixed assets, lease property in the long term.
Beneficiaries:
Foreign company, a project of high technology, real investment minimum of
$ 500,000.
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Dyno Nobel – Austral Project
Aplication Program for Promotion of Investment in High
Technology
Línea
Cofinancia
Todo Chile. Cofinanciamiento
Estudios de Preinversión
Estudios Arquitectonico
HT 2. Puesta en marcha
Obtención de permisos
HT 3. Formación de Recursos
Humanos
Formación de Recursos Humanos
HT 4 Inversión Activos Fijos
Inmovilizados
Inversión en Activos Fijos Inmovilizados realizada en
proyecto – Equipo Especializado
Todo Chile” Subsidio a Estudios de Preinversión Tope US$60.000
(region)
Hasta el 25% del sueldo bruto anual, con un tope máximo de US$
5.000 por trabajador
Hasta el 30% del sueldo bruto anual, con un tope máximo de US$
25.000 por trabajador (P/E)
Máximo 40% de la inversión de activos fijos (Tope de US$ 2.000.000)
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Dyno Nobel – Austral Project
Aplication Program for Promotion of Investment in High
Technology
Línea
Cofinancia
HT 5. Arrendamiento de
Inmuebles a Largo Plazo
Contrato por propiedad de terceros
HT 6. Arrendamiento de
Inmuebles de la Corporación
Uso de inmuebles de propiedad de CORFO – N/A
HT 7. Capacitación de alta
especialización
Capacitación por expertos no fácilmente disponibles
en el mercado nacional – (USA & RSA Training)
Máximo 40% de la renta. (Tope de US$ 1.000.000).
Descuento de la renta entre 1% y 100% sobre el valor de m2
a arrendar
Conjunto de actividades que permitan identificar, capacitar y/o
reclutar profesionales chilenos extranjeros de Alta
Especialización. 50% del costo de un Programa de
Capacitación, por una sola vez. Tope máximo de US$
100.000.
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Dyno Nobel – Austral Project
Aplication Process
September 2008
• Contacted by investment promotion
program providers Mining Industry
December 2008
• Participation in the Second Forum on
Mining Suppliers
February 2009
• It’s reported within the company about
the project in Latin America
Agoust 2009
November 2009
• Localization studies begin
• Application Program grants to hightech
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Dyno Nobel – Austral Project
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CORFO's High Technology Investment Inccentives
HT - 1
Maximun
(Todo
Chile)
HT - 2
HT - 3
HT - 4
HT - 5
HT - 6
HT - 7
TOTAL
USD $
USD $REQUESTED
52.000
44.000
85%
30.000
18.050
60%
157.581
94.812
60%
599.145
360.490
60%
489.783
0
0%
N.A.
N.A.
49.970
30.066
60%
1.378.479
547.418
40%
USD $ APPROVED
% APPROVED
21
Agenda
 Background Dyno Nobel
 Austral Project Dyno Nobel
 Conclusions and comments
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25
26
27
28
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Conclusions and comments

Dyno Nobel Chile – Next Steps:


Expand product portfolio from the set global.
Expand scope of services incorporating Asia Pacific and North America Know – How.
Explosives and Inition Systems
Complete Shot & Blasting Service
ANFO
Titan® Bulk Emulsions
Packaged Explosives
NONEL ®
Blasting Engineering - continuous
improvemen
Electronic Detonator
Electric Super
Primacord ® & Primaline ®
Trojan ® Cast Boosters
Oil & Gas Explosives
Seismic Explosives
Rock Fragmentation Consulting
(Productivity, cost and safety improvement)
31
Dyno Nobel Explosivos
Chile
Martin Pierola
Commercial Manager
Office: +56 2 2314558 – 2313542 | Mobile: +56 9 77664504
mailto: martin.pierola@am.dynonobel.com
http://www.dynonobel.com