Orica Explosives Wins Qld Contracts Worth $40 Million

17th February, 1998

A new emphasis on value-added services and technology has paid off for Orica Explosives, with the business recently winning four contracts worth around $40 million to supply Queensland mines.

Orica Explosives will supply BHP Gregory, MIM Holdings' Mount Isa Mines, Thiess Contractors at MIM Holding's Newlands Coal and ARCO's Curragh mine with a range of blast management services and technical support.

Orica Explosives' general manager Mr Alan King said, "The business has intensified its focus on delivering better cost efficiencies to mining customers. The highest value we can add is by working with the mine to reduce overall mining costs through improving efficiency in drilling, blasting, excavating and hauling.

"We have won significant business in these past few months and these new contracts indicate that the market is supportive of our strategy of pursuing value-added service business opportunities."

At the BHP Gregory mine, where Orica Explosives previously supplied only explosives, Orica now supplies a package which includes a blasting service and technical expertise to reduce overall blasting costs.

"This represents not only a step-change improvement in the level of customer service, but the customer receives considerable cost savings," Mr King said.

"For example, our technical services personnel's time is invested largely in identifying improvements for customers, making recommendations for improved blast performance and introducing new products and operating practices which all help lower mining costs.

"Our customers no doubt feel confident that our forthcoming position as the world's largest commercial explosives company will allow us to offer them cost benefits in conjunction with secure, long-term supply of blasting services and world's best technology.

"We have been selected as preferred supplier for a number of contracts because the customers know we have the technology to handle their job. This includes modelling blast designs for each customer which meets their specific limitations and the conditions presented."

Mr King said, "We are already acknowledged as a world leader in the field of vibration through the application of gas penetration monitoring. We are now well down the track to making blast management a more precise, scientific process.

"All R&D activity undertaken at the company's International Centre of Excellence, based at Kurri Kurri in the Hunter Valley, is geared towards underpinning this strategy."