Electronic Detonator and Initiation Systems - Implications of the Dominant Design for Widespread Acceptance and Sales of this 'New' Technology

Electronic detonators have been commercially available to the mining industry worldwide for over ten years. It is estimated that total cumulative global sales will have reached 25 million units by the time of the Conference in February 2004. This is below 0.2% of all detonator types sold during this period. Perhaps 20 million will have been used underground in South African gold, diamond and platinum mines. These will have been produced by South African companies, in South Africa for South African customers. Here efforts have met with greater success and in 2003 fully 5 million, or 3% of local detonators sold, could be of an electronic type. However, it is estimated that about US$7.00 (R50.00) has been expended on R & D, manufacturing facilities and marketing, for each unit so far sold. Large sums of money continue to be spent. Despite the apparent success in South Africa, is it justified? Electronic initiation systems have not produced significant technical benefits to the end-user underground nor corporate profits to the supplier. Some doubt they ever will (even from the large surface operations where the price per unit is much higher). A conclusion might be that they have failed. In 1998 Smit and Pistorius wrote a paper titled “Implications of the Dominant Design in Electronic Initiation Systems in the South African Mining Industry”. This ISEE paper seeks to summarise and review the conclusions of the earlier work. These were: that a dominant design had not yet emerged; the type of connector and the way in which detonators are connected and programmed would be a strong determinant influencing the development of a “winning” product; technical aspects rarely solely determine which becomes the dominant design (marketing, social and economic factors often have a strong influence); electronic initiation systems were an emerging technology for the underground gold mining industry in South Africa and because it was under severe cost pressure the mines would look to them to raise productivity and hence profits; finally, as a dominant design begins to emerge, one could expect a number of players to exit from the industry.