Orica
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![]() Orica House,the company headquarters | |
Formerly | ICI Australia |
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Company type | Public |
ASX:ORI | |
Industry | Metals,mining,oil and gas,construction,tunnelling |
Founded | 1874 |
Headquarters | Orica House East Melbourne,Victoria, Australia |
Key people | Malcolm Broomhead(Non-Executive Director & Chairman) Sanjeev Gandhi (Managing Director & CEO)[1] |
Products | Explosives,Sodium cyanide,Ground support |
Revenue | ![]() |
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Total assets | ![]() |
Total equity | ![]() |
Number of employees | 15,000 (2021) |
Website | www |
Orica Limited(ASX:ORI) is anAustralian-basedmultinational corporationthat is one of the world's largest providers of commercialexplosivesand blasting systems to themining,quarrying,oil and gas,andconstructionmarkets, a supplier ofsodium cyanideforgold extraction,and a specialist provider of ground support services in mining andtunnelling.
Orica has a workforce of around 15,000 employees and contractors, servicing customers across more than 100 countries. Orica is listed on theAustralian Securities Exchange.It has in recent years been subject to a number of high-profile industrial accidents and fatalities.
History
[edit]Founded in 1874 as Jones, Scott and Co, a supplier of explosives during theVictorian gold rush,the company was bought byNobel Industries.Nobel later merged with several British chemical manufacturers to formImperial Chemical Industries.In 1928, Imperial Chemical Industries of Australia and New Zealand (ICIANZ) was incorporated to acquire and coordinate all of its Australasian interests.[3]
In July 1997, ICI Australia became an independent Australasian company after Imperial Chemical Industries, divested its 62.4 per cent shareholding in the company.[4]ICI Australia was required to change its name and on 2 February 1998 was rebranded as Orica.[5]
In 2010, Oricaspun offDuluxleaving the company to focus on the provision of services to the mining, construction and infrastructure industries.[6][7]
In November 2014, Orica sold its chemicals business to theBlackstone Group.The sale was completed on 2 March 2015, and the chemicals business now operates under the name Ixom.[8]
In 2018, Orica acquired GroundProbe, a provider of monitoring and measurement technologies for mining.[9]
In 2020, Orica acquired Essa, a manufacturer and distributor of industrial explosives in Peru.[10]
In 2023, Orica acquired Terra Insights and Cyanco.[11]
Financial performance
[edit]Orica's revenue in 2016 was AUD$5.1 billion and statutory net profit after tax (NPAT) attributable to the shareholders of Orica for the full year ended 30 September 2016 was $343 million.[12]
Sustainability
[edit]Orica is a member of theDow Jones Sustainability Index,the Australian SAM Sustainability Index (AuSSI) and theFTSE4Good Index.These Indexes provide a benchmark for the performance of investments in sustainable companies and funds. Orica releases an annual Sustainability Report that outlines performance against key sustainability metrics.[13]
In 2014, Orica was identified as a global leader innatural capitaldecoupling,[14]which shows the ability of organisations to "decouple" financial growth from environmental impact, by increasing revenue whilst decreasing their absolute impact.
Markets/industries
[edit]Orica operates across the following markets and industries:
- Surface metal
- Surface coal
- Underground mining
- Underground construction
- Construction
- Quarrying
- Oil and gas
Products and services
[edit]Orica operates three primary business areas:
Blasting
[edit]Orica is one of the world's largest provider of commercialexplosivesand blasting systems to the mining, quarrying, oil and gas, and construction markets.[15]
Products and services
[edit]- Contracted services
- Initiators
- Boosters
- Bulk explosives
- Packaged explosives
- Data, reporting & analytics
- Supplementary services
- Seismic systems
Minova
[edit]Minova is no longer[16]a member of the Orica Group. Products and services include:
- Steel bolts and plates
- Glassfibre reinforced polymer bolts
- Injectable chemicals and foams
- Mesh
- Resin capsules
- Cementitious grouts & coatings
- Pumps
- Soil anchoring systems
- Ballast bonding polymers
- Accessories and engineering services
Sodium cyanide
[edit]Orica is a supplier ofsodium cyanidefor gold extraction.
Products and services include:
- Analysers
- PRO service
- Data, reporting & analytics
- Sparge
- Training
Headquarters
[edit]![](https://upload.wikimedia.org/wikipedia/commons/thumb/2/21/Ici_house_melbourne.jpg/220px-Ici_house_melbourne.jpg)
Once Australia's tallest building, the companies headquarters,Orica HouseinEast Melbourne,was Australia's tallest during the 1950s and was one of the first high-rise buildings in Australia's cities.[17]
Incidents
[edit]Corporate
[edit]Bullying scandal
[edit]In March 2015 then CEO Ian Smith was ousted from the business due to bullying of a female employee.[18]During Smith's tenure as CEO, some of the senior leadership within the organisation left for other companies. Alberto Calderon replaced Ian Smith in 2015 until 2020. Orica’s earnings post Ian smith’s departure experienced a significant decline as well as incurred multiple extraordinary charges. During this time there was also significant turnover within the executive leadership team.
In Australia
[edit]Botany, New South Wales
[edit]Organochlorines in the Botany aquifer
[edit]Remediation began in 2005 after production of chlorinated solvents by ICI over many years resulted in significant contamination of theBotanyaquifer,a high-quality sand aquifer located below the eastern suburbs ofSydney,New South Wales.The main chemical contaminant found in groundwater around the old ICI site is EDC (1,2-dichloroethane), apersistent organic pollutantand byproduct of the manufacture ofPVC.Orica has built an A$167 million Groundwater Treatment Plant (GTP) to achieve containment of this contamination and provide high quality industrial water to Botany Industrial Park. Water produced by Orica's GTP saves Sydney's potable water supply around 5 megalitres (1.1 million imperial gallons; 1.3 million US gallons) per day (approx 0.5% of Sydney's water demand). Residents in the area were banned from accessing the groundwater. Orica estimated in 2012 that the GTP had been in operation for seven years of its 30-year design life cycle.[19]
Mercury leak, 2011
[edit]The Botany chemical plant released mercury vapour into the atmosphere on 27 September 2011, breaching environmental standards for nine hours.[20][21]An air monitor located near residents atBanksmeadow[22]detected the mercury vapour and theOffice of Environment & Heritage(OEH) was notified.[20]Dr Mariann Lloyd-Smith, said the length of time the emissions lasted was extraordinary, "Mercury is extremely toxic. It is recognised as one of the most important and most hazardous toxins that we deal with, and there is currently a UN negotiation for a global treaty on mercury to address this," she said.[21]The mercury vapour was associated with mercury which had polluted the soil on the Orica site, due to leaking pipes.[20]Robyn Parker,the New South Wales Minister for the Environment & Heritage said "I am incredibly angry and disappointed that yet again we have another incident with Orica."[21]In January 2013, the NSW EPA announced that it would conduct a review of off-site emissions of mercury.[23]
Mercury leak, 2012
[edit]On 17 January 2012 Orica reported a mercury leak at itsPort Botanyplant, the second mercury incident since August 2011. In a series of samples of environmental air, the EPA recorded a mercury level of 0.0049 grams per cubic metre (8.3×10−6pounds per cubic yard); more than double the regulatory limit of 0.002 grams per cubic metre (3.4×10−6pounds per cubic yard).[24]The leak occurred in December 2011 and Orica failed to report the leak to authorities until the following month.[25]The site of the breach was the thermal desorbtion stack at the company's carpark waste remediation project, which was closed when the breach occurred. TheNew South Wales Environment Protection Authoritysaid the incident was not linked to the mercury emissions breach in September at Orica's other Botany site on Beauchamp Road.[26]
Gladstone, Queensland
[edit]Cyanide leaks, 2012
[edit]On 8 June 2012 theQueensland Department of Environment & Sciencelaunched a legal prosecution against Orica in the Gladstone Magistrates' Court. The company was charged with 279 counts of willfully contravening its approvals in relation to alleged cyanide leaks intoGladstone Harbour.[27]The government claimed that in January and February 2012, Orica discharged effluent water containing heightened levels of cyanide into Gladstone Harbour.[28]"The charges are related to allegations that the company did not inform The Department of the Environment. The charges related to a breach of conditions rather than any environmental harmper se".[29]
Kooragang, New South Wales
[edit]Throughout August and December 2011 Orica had six major chemicals incidents or leaks in Australia. The first one was a leak ofhexavalent chromiumfrom its ammonium nitrate plant nearStocktonthat affected 70 households; the second one was the release ofarsenicinto theHunter RiveratNewcastle;the third was of mercury vapours from its Botany site;[30]the fourth was a leak ofammoniafrom its site atKooragang;[31]the fifth was an ammonium nitrate leak of 20,000 litres (4,400 imperial gallons; 5,300 US gallons) at its Kooragang Island plant, only a day after being allowed to reopen; and the sixth incident was a sulphuric acid leak of approximately 3,000–4,000 litres (660–880 imp gal; 790–1,060 US gal) at its Port Kembla site.[32]The fourth leak triggered a public forum and NSW Government investigation into the leaks, and the temporary shut down of the Kooragang Island plant.[31]
Hexavalent chromium leak, 2011
[edit]Orica's Kooragang Island chemical plant released hexavalent chromium into the atmosphere on 8 August 2011. The known carcinogen was released between 6 and 6:30pm and the spill continued for approximately 20 minutes.[33]An estimated 1 kilogram (2.2 lb) of hexavalent chromium was discharged from the Orica plant, with another 35–60 grams (1.2–2.1 oz) over the suburb of Stockton.[34][35]Approximately 20 workers at the plant were exposed as well as 70 nearby homes in Stockton.[36]Orica failed to notify government authorities until 16 hours after the incident and residents were not formally notified for three days.[37]Under a Prevention Notice issued on 11 August 2011, the OEH closed the ammonia plant at Kooragang Island.[38]The hexavalent chromium leak was the subject of aNew South Wales ParliamentUpper Houseinquiry that was concluded in February 2012.
Hunter River arsenic leak, 2011
[edit]Effluent containing high levels of arsenic leaked into the Hunter River from the Kooragang Island chemical plant on 19 August 2011 at 3pm.[39]Arsenic had not been used on the site since 1993, however during a cleanup of a hexavalent chromium spill on the site the week prior, old deposits of arsenic leaked into a storage pond and drained into the Hunter River.[40]It was estimated the arsenic concentration was 0.067 milligrams per litre, exceeding licence limits.[40]Barry O'Farrell,thePremier of New South Wales,said "two spills in a fortnight raise reasonable concerns about systemic failures in the way in which this company is operating its facilities."[41]O'Farrell continued, "I've had a gutful of families being distressed, by potential threats to their safety and threats to their local environment."[40]
Ammonia leak, 2011
[edit]On 9 November 2011 more than 900 kilograms (2,000 lb) of ammonia was initially suspected of venting to the atmosphere from the Kooragang Island plant during a 45-minute period. The venting was due to a relief valve operating to prevent overpressure of a liquid ammonia tank. Engineering studies subsequently revised the amount down to ~90 kilograms (200 lb).[42]The leak was identified by firefighters responding to an alarm raised by the hospitalisation of two railway workers atMayfieldwho were affected by the plume of escaping gas.[43]Six fire units and a hazardous chemicals unit were called to the chemical plant to deal with the leak of the ammonia gas.[44]Despite initial statements by Orica that the leak posed no public health risk,[44]two rail workers in the nearby suburb ofMayfield Eastwere overcome by ammonia fumes and were taken to hospital with breathing difficulties.[42]Less than an hour before the ammonia leak, the Environment Protection Authority announced it would take Orica to court over the hexavalent chromium leak which occurred on 8 August 2011 at the same plant.[44]
Ammonium nitrate leak, 2011
[edit]On 7 December 2011, in excess of 20,000 litres (4,400 imp gal; 5,300 US gal) of weak ammonium nitrate (<35%) solution/fertiliser leaked onto grassed areas at the Kooragang Island chemical plant. Emergency services were called to the site including aHAZMATteam.[45]The spill occurred less than a day after the Environmental Protection Authority announced it would allow the reopening of part of the Kooragang Island plant. Local residents continued to criticise the company for failing to notify residents in a timely manner and called for the plant to remain closed.[46]
Hydrogen stack fire, 2012
[edit]On 8 January 2012 lightning ignited hydrogen being released from the plant. Flames higher than 20 metres (66 ft) leapt from the hydrogen stack and were reported by local residents to authorities.[47]
Port Kembla, New South Wales
[edit]Sulphuric acid leak, 2011
[edit]A spill of approximately 3,000–4,000 litres (660–880 imperial gallons; 790–1,060 US gallons) of concentrated sulphuric acid occurred at thePort Kemblachemical plant on 16 December 2011.[48]The leak was suspected to be caused by a hole in the ship-to-shore pipeline. Acting chief environmental regulator Mark Gifford from the NSW EPA said he was concerned about the ongoing incidents with Orica.[49]
In Mexico
[edit]Coahuila
[edit]Explosion, 2007
[edit]![](https://upload.wikimedia.org/wikipedia/commons/thumb/2/24/Wikinews-logo.svg/40px-Wikinews-logo.svg.png)
On 10 September 2007, 28 people were killed and over 250 injured inCoahuila,Mexico,as a result of an accident between a pick-up and a truck which resulted in an explosion. The truck was transporting about 25 metric tons ofdynamiteunder contract for the company Orica near the cities ofMonclovaandCuatro Ciénegas.Exact numbers of the dead and injured vary according to source. Orica's website stated there were a total of 28 fatalities in 2007—one worker and 27 contractors/members of the public.[50][51][52]
References
[edit]- ^[1],Feb 2021,orica.com.Retrieved 10 Octore 2021.
- ^abcde"Orica Limited 2022 Full Year Preliminary Final Report".orica.com.30 September 2022.Retrieved4 January2023.
- ^HistoryOrica
- ^ICI Australia Share Drop SharplyNew York Times9 May 1997
- ^Clinch puts fuse under explosives businessAustralian Financial Review2 November 1998
- ^Orica announces proposed Dulux demergerSydney Morning Herald3 May 2010
- ^Demerger of DuluxGroup receives Court approvalOrica 9 July 2010
- ^About UsIxom
- ^"Orica acquires GroundProbe".Orica.
- ^Moore, Paul (18 February 2020)."Orica acquires Peru's mining explosives leader Exsa".International Mining.
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- ^"The Natural Capital Leaders Index".Trucost.
- ^Simon, Hermann(2009).Hidden Champions of the 21st Century: Success Strategies of unknown World Market Leaders.London: Springer.ISBN978-0-387-98147-5.
- ^https://www.orica.com/news-media/2022/minova-sale-completed-orica-remains-on-track-to-deliver-results-in-line-with-outlook[bare URL]
- ^Melbourne's bold leap upwards: the inside story of Australia’s first skyscraperThe Guardian7 September 2016
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- ^"Groundwater Treatment Plant (GTP)".Groundwater Cleanup Project.Orica Limited.
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- ^Tovey, Josephine (29 September 2011)."Orica leak prompts call for pollution law revamp".Sydney Morning Herald.Fairfax Media.Retrieved23 October2015.
- ^"Independent review into off-site mercury at Orica Botany".New South Wales Environment Protection Authority.14 February 2014.Retrieved25 May2014.
- ^"Orica breach deeply concerning - New South Wales Government".Herald Sun.18 January 2012.
- ^"Orica reports mercury leak from Sydney site".ABC Radio Sydney.18 January 2012.
- ^"Another breach at Orica plant".Daily Telegraph.Sydney. 18 January 2012.
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- ^Metherell, Lexi (28 September 2011)."Toxic leak in Sydney's suburbs".AM(transcript). Australia.Retrieved29 September2011.
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- ^"Revised figures reveal that lower levels of hexavalent chromium were present at Stockton"(Press release).Office of Environment & Heritage.15 February 2012.
- ^"Orica welcomes revised Chromium VI results"(PDF)(PDF). Orica Limited. 15 February 2012.
- ^Fragnos, John (28 August 2011)."Health risk assessment of hexavalent chromium release at Orica Kooragang Island"(PDF)(PDF).NSW Health.p. 2.
- ^"Health advice over Orica spill".NBN News.12 August 2011. Archived fromthe originalon 16 August 2011.
- ^"Orica incident: Orica hexavalent chromium emission incident, Kooragang Island".NSW Environmental Protection Authority.25 July 2013.Retrieved25 May2014.
- ^"Orica spills arsenic into Hunter River".Newcastle Herald.19 August 2011.
- ^abcRice, Deborah (20 August 2011)."Orica chemical spill infuriates residents"(streaming video).ABC News.Australia: YouTube.Archivedfrom the original on 22 December 2021.
- ^Ford, Mazoe (20 August 2011)."Second leak"(streaming video).Channel 10 News.YouTube.Archivedfrom the original on 22 December 2021.
- ^abMcDonald, Philippa (10 November 2011)."Orica plant shut down after ammonia leak"(streaming video).ABC News.Australia: YouTube.Archivedfrom the original on 22 December 2021.
- ^"Orica's crisis of confidence".Newcastle Herald.11 November 2011.
- ^abc"Latest Orica leak coincides with legal action".ABC News.Australia. 9 November 2011.
- ^"Another leak halts Orica restart operation".Herald Sun.7 December 2011.
- ^"Residents anger over latest Orica leak".ABC News.Australia. 8 December 2011.
- ^"Lightning sets fire to Orica gas discharge".Newcastle Herald.9 January 2012.
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- ^Harvey, Adam (17 December 2011)."EPA wants report on latest Orica leak".ABC News.Australia.
- ^"Targets & Performance".Sustainability Index.Orica Limited. 2007. p. 19.
- ^"Dynamite blast on truck kills 23 in Mexico".CNN.10 September 2007.
- ^"Reportan 37 muertos por explosión en Coahuila".El Universal- Los Estados(in Spanish). Mexico. 10 September 2007.