Orica and Kimit to Form Scandinavian Explosives Venture

9th October 2000

Kimit AB and Orica Limited are pleased to announce the execution of a letter of intent to form a joint venture to manufacture, supply and distribute commercial explosives in the Nordic countries.

Kimit AB is a subsidiary of LKAB, operator of the world’s largest underground iron ore mine, and is one of the world’s leading suppliers of iron ore pellet products.

Stephen Connolly, General Manager of Orica Europe Ltd., said: "The Nordic countries represent another important link in Orica’s global explosives strategy. This complements Orica’s recent announcement regarding the acquisition of Dynamit Nobel’s commercial explosives business, and cements our position in leading the European Explosives market."

The joint venture linking Kimit and Orica will provide significant benefits to the Nordic explosives market by bringing increased access to the world’s leading blasting technology. The joint venture is expected to initially have sales of approximately Skr40 million (A$8 million). Orica Europe Ltd will hold 51% and Kimit AB 49% of the shares of the new company.

Bernt Larsson, Managing Director of Kimit AB, said: "The joint venture company will enhance our position in the Nordic market. The co-operation will provide Kimit AB access to new explosives technology developed by Orica through its worldwide network of Technology Centres. This technology will also be used in LKAB’s mines in Northern Sweden, thereby enhancing LKAB’s competitiveness in the world market".

Orica Europe Ltd is a wholly owned subsidiary of Orica Limited, which is the world’s largest supplier of commercial explosives.