Orica Wins Contract With Global Mining House: $120M Agreement to Support Rio Tinto in Australia

31st August, 1999

Orica has signed a $120 million, three-year agreement to supply a total product and service explosives package to seventy per cent of Rio Tinto’s Australian business units.

Orica has won the Rio Tinto business through a combination of new technology, process improvement and cost efficiencies.

The Rio Tinto businesses and mines which Orica will supply as part of this agreement are:

• Argyle Diamond Mines of Western Australia;
• Rio Tinto Coal New South Wales, servicing the Howick Mine, Hunter Valley Mines and Mount Thorley Mines in the Hunter Valley;
• Peak Gold Mine of western New South Wales.

Orica’s total supply package will represent a combination of bulk explosives and ‘down the hole’ services, initiating explosives, technical services and expertise.

In addition, Orica will continue to supply Rio Tinto’s Hamersley Iron of Western Australia with initiating explosives.

Orica managing director and chief executive officer Mr Philip Weickhardt said, "Orica’s mission is to become the world leader in explosives and smart blasting systems, producing safe and cost effective results for our customers.

"Consistent with our mission, we have been working with Rio Tinto to find ways of improving productivity and reducing their businesses’ total mining costs. This collaborative approach will deliver improved productivity and cost efficiencies for each Rio Tinto business unit."

Mr Weickhardt said," Orica is the world’s largest explosives company. Our strategy to become a global leader in Explosives fully recognises the trend to major consolidation and globalisation of our customers.

"We believe we have a total service package which can meet our customers’ needs in much of the world. Aligning ourselves as an explosives partner to such global customers offers significant growth opportunities for Orica."