Orica Forms New Company In Venezuela

27th April, 2000

Orica Explosives today announced that it had formed a joint venture company with the Merand Group of Venezuela with the aim of expanding Orica's participation in the market for industrial explosives.

The joint venture company will operate in Venezuela under the name Orica Venezuela C.A. The new company has signed an agreement with Compañía Anónima Venezolana de Industrias Militares (CAVIM), a state owned company which regulates the manufacture and commercialisation of industrial explosives in Venezuela, to build and operate a plant to supply CAVIM with the bulk explosives needs of its key customers for at least the next five years. Orica Venezuela expects to shortly sign a similar agreement to upgrade and operate CAVIM's existing packaged emulsion explosives plant.

The Venezuelan market for industrial explosives is estimated to have a value of about A$35m and is expected to grow at around 10% per year.

The Merand Group is a diversified family owned group of companies with considerable experience in the supply of explosives and related services to the Venezuelan mining and construction industries. Prior to formation of the JV, Quarterdeck, C.A., a member of the group, was Orica's agent in Venezuela.

Les Miller, president of Orica Latin America said: "The formation of this joint venture is another step forward in Orica's growth strategy for its explosives business in Latin America."

Orica's existing Latin American explosives interests include manufacturing operations in Argentina, Brazil, Chile and Mexico.