Orica’s interim CEO has said 2015 is likely rock bottom
for the mining industry and there’d be fierce competition among explosives
companies for Pilbara business.
The company announced a 3 per cent decrease in net
profit, to $211 million, and decreased explosives volume guidance to 3.75
million tonnes (from between 3.8 and 4 million in March).
Calderon commented that the resilience the company had
displayed in the difficult environment was “pretty amazing”.
“This doesn’t mean it’s easy, but the degree Orica has been
able to withstand this is impressive,” he said.
The Australian reports that this had been solidified
during former managing director Ian Smith’s leadership, which saw an increased
focus on cost-cutting, productivity and value-added explosives.
Orica is due to open a new ammonium nitrate factory at
Burrup Peninsula on the west coast later in 2015.
Fairfax reports that competition between Orica and
rival explosives companies for business in the Pilbara is expected to be
Rivals CSBP, Africa’s AEL and Incitec
Pivot will all be selling into a local market with both increased capacity and
cost-cutting from miners in Australia and Indonesia.