METS

Orica reports stronger mining demand

EXPLOSIVES and chemicals giant Orica has reported a slightly lower half-year profit, with strong ...

Kristie Batten

This article is 12 years old. Images might not display.

Orica reported a net profit after tax and individually material items of $A253 million for the six months to March 31, down $11 million on the same period last year.

The company said Kooragang Island had cost it $90 million in earnings before interest and tax in the period.

The ammonia plant restarted in February.

“The impact of Kooragang has been predominantly felt in the Orica Mining Services business, with a six per cent decrease in EBIT down to $313 million versus the previous corresponding period,” Orica managing director and chief executive Ian Smith said.

The EBIT for the chemicals business rose 1% to $96 million.

“Demand from mining markets remained strong, particularly for sodium cyanide and emulsifiers,” Smith said.

He said Latin America had performed well but industrial markets in Australia and New Zealand had been subdued.

“We are pleased with the significant progress we have made in the period in establishing a presence in the high-growth Pilbara iron ore market in Western Australia,” Smith said.

“The proposed joint venture with Yara and Apache for the manufacture and distribution of ammonium nitrate in the region represents a unique opportunity to establish a leading position in this market, with reduced capital risk.”

Smith said a restructuring program was underway to make the company more accountable and more customer and community focused.

Orica has forecasted higher NPAT for 2012.

Shares in Orica were unchanged at $26.54.

TOPICS:

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining News Intelligence team.

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining News Intelligence team.

MiningNews.net Research Report 2025

The MNN Research Report 2025 provides insights into critical mining themes in Australia/Oceania, including top projects, C-suite priorities, risk, ESG performance and investor sentiment.

editions

Mining Journal Intelligence: Investor Sentiment Report 2025

Exclusive insights into the plans, priorities and preferences of 130+ mining investors and top factors influencing investment decisions in 2025.

editions

Mining Journal Intelligence World Risk Report 2024 (feat. MineHutte ratings)

A detailed analysis of mining investment risks across 117 jurisdictions globally, assessed across six risk categories and an industrywide survey.

editions

Mining Company ESG Index: Benchmarking the Future of Sustainable Mining

The Mining Company ESG Index report provides an in-depth evaluation of ESG performance of 61 of the world's largest mining companies. Using a robust framework, it assesses each company across 9 meticulously weighted indicators within 6 essential pillars.