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Bulk vs packaged explosives
What it is
Bulk explosives are pumped or augered directly into blast holes from a mobile truck at the mine site; packaged explosives come as cartridges loaded by hand. Bulk suits large opencast operations, packaged suits underground and small-scale work
Bulk delivery is increasingly sold as a blasting service rather than a product
Impact on industries
- Bulk shifts the relationship from product supply to on-site service, embedding the supplier in mine operations and raising switching costs
- Service contracts carry better margins and recur with mine output rather than being re-tendered as a commodity purchase
- Requires a fleet of specialised delivery trucks and on-site teams, so it is capital and manpower intensive per customer
- Mix follows mining method - the shift toward large opencast coal and iron ore favours bulk, while underground work retains packaged