New mining contracts and extensions have helped Omnia Holdings increase operating profit from its South African mining operations by 44%, as the mining supplier expands its business despite international supply chain disruptions and commodity price volatility.
The Johannesburg Stock Exchange-listed group reported the increase in its interim results released on Monday, November 9, for the six months ended September 30, 2026.
Omnia’s South African mining business made R357 million in operating profit during the six months ended September 2026, compared with R248 million during the same six-month period in 2025.
Omnia attributed the improvement to increased volumes from new contract wins and extensions, a strong Northern Cape performance and cost containment.
The group’s overall mining division also recorded an improved performance, with revenue increasing 11% to R5.36 billion and operating profit rising 15% to R655 million.
Stats SA reported that South African mining production declined by 10.7% year-on-year in September 2026, despite a 2.8% month-on-month increase in seasonally adjusted output. Mining production fell by 6% in the third quarter compared with the previous quarter.
Supply chain pressures persist
The improved mining performance came against a backdrop of international supply chain disruptions and volatility in commodity input prices, particularly those linked to geopolitical tensions in the Middle East.
Commenting on the group’s financial performance, chief executive Seelan Gobalsamy said the business had managed to grow profitability despite the challenging operating environment.
“Despite geopolitical uncertainty, global supply chain disruptions and commodity price volatility, operating profit grew by 26%, supported by cost management, portfolio diversification and agile sourcing,” he said.
Omnia’s results indicate that its domestic mining operations benefited from higher volumes, while its international business experienced operational challenges in some markets.
Mining International recorded revenue growth of approximately 1% to R2.71 billion, but operating profit declined 7.5% to R298 million.
The group attributed the weaker international profitability to disruptions in West Africa, infrastructure development in Canada and Australia, and challenges in its metallurgy business.
Growth opportunities in mining
Omnia’s domestic performance highlights the importance of securing mining contracts for suppliers operating across the mining value chain.
The company’s mining business provides explosives, blasting solutions and related services to mining operations, making contract acquisitions and extensions important drivers of its revenue and volumes.
Gobalsamy said the group’s financial position would allow it to continue investing in its operations and pursuing expansion opportunities.
“Our strong financial position provides a solid base from which to allocate capital toward strengthening our core operations and pursuing growth opportunities across agriculture and mining,” he said.
At group level, Omnia’s operating profit increased 26% to R1.135 billion, while revenue rose 2% to R11.41 billion.
The company said it would continue focusing on geographic diversification, technology, manufacturing capabilities and operational efficiency to support growth in its mining and agriculture businesses.
