Orica
| Company type | Public |
|---|---|
| Industry | Commercial explosives, mining services, chemicals |
| Founded | 1874 |
| Headquarters | East Melbourne , Australia |
Area served | Worldwide (more than 100 countries) |
Key people | Alberto Calderon (former CEO 2015–2020), Ian Smith (former CEO until 2015) |
| Products | Commercial explosives, blasting solutions, sodium cyanide, ground support services |
Number of employees | 15,000 |
| Website | www |
Orica Limited () is a multinational enterprise headquartered in Australia, recognized as a premier global supplier of commercial explosives and blasting solutions tailored for the mining, quarrying, oil and gas, and construction industries. Additionally, the company provides sodium cyanide used in gold extraction processes and delivers specialized ground support services for mining and tunneling applications.
Employing approximately 15,000 staff and contractors, Orica operates in more than 100 countries worldwide. The company is publicly listed on the Australian Securities Exchange. In recent times, it has encountered several notable industrial incidents.
History
Established in 1874 under the name Jones, Scott and Co to supply explosives amid the Victorian gold rush, the firm was subsequently acquired by Nobel Industries, which later merged into Imperial Chemical Industries (ICI). In 1928, Imperial Chemical Industries of Australia and New Zealand (ICIANZ) was created to oversee operations across Australasia.
In July 1997, following the divestment of Imperial Chemical Industries’ 62.4% stake, ICI Australia became an independent entity. The company adopted the Orica brand on 2 February 1998.
To concentrate on mining, construction, and infrastructure services, Orica divested its Dulux business in 2010. Later, in November 2014, it sold its chemicals division to Blackstone Group; this segment now operates under the name Ixom.
Orica has grown through acquisitions including GroundProbe in 2018—a specialist in mining monitoring technology; Essa in Peru in 2020—a producer and distributor of industrial explosives; as well as Terra Insights and Cyanco in 2023.
Financial performance
For the fiscal year ending 30 September 2016, Orica reported revenues totaling AUD$5.1 billion and recorded a statutory net profit after tax (NPAT) attributable to shareholders of $343 million.
Sustainability
Orica is included in prominent sustainability benchmarks such as the Dow Jones Sustainability Index, the Australian SAM Sustainability Index (AuSSI), and the FTSE4Good Index, all of which assess sustainable investment credentials. The company releases an annual Sustainability Report outlining its achievements against critical sustainability indicators.
In 2014, Orica earned recognition as a global frontrunner in natural capital decoupling by demonstrating growth in revenue alongside a reduction in environmental footprint.
Markets/industries
Orica caters to a diverse range of sectors:
- Surface metal mining
- Surface coal mining
- Underground mining
- Underground construction
- Construction
- Quarrying
- Oil and gas
Products and services
Orica’s business is structured around three principal areas:
Blasting
As a leading global supplier of commercial explosives and blasting technologies, Orica supports operations within mining, quarrying, oil and gas, as well as construction fields.
Products and services
The company’s offerings encompass:
- Contract blasting services
- Initiators
- Boosters
- Bulk explosives
- Packaged explosives
- Data management, reporting & analytics
- Ancillary services
- Seismic monitoring systems
Minova
Minova is no longer part of Orica’s portfolio. Its previous product lineup included:
- Steel bolts and plates
- Glass fibre reinforced polymer bolts
- Injectable chemical agents and foams
- Mesh materials
- Resin capsules
- Cementitious grouts and coatings
- Pump equipment
- Soil anchoring solutions
- Ballast bonding polymers
- Various accessories alongside engineering support services
Sodium cyanide
Orica provides sodium cyanide utilized in gold recovery processes, including services such as:
- Analytical instruments
- PRO support services
- Comprehensive data, reporting, and analytics
- Sparge system technology
- Educational and training initiatives
Headquarters
Orica's main office is located in Orica House, East Melbourne, which was once the tallest structure in Australia during the 1950s and ranked among the earliest skyscrapers in Australian urban areas.
Bullying controversy
In March 2015, CEO Ian Smith was dismissed following a bullying episode involving a female staff member. Throughout Smith’s leadership, there was an increase in senior management departures as executives moved to other firms. Alberto Calderon took over as CEO from 2015 until 2020. After Smith’s exit, Orica experienced a notable drop in profits amid several exceptional charges and continued executive turnover.
Organochlorine contamination in the Botany aquifer
Remediation efforts commenced in 2005 due to substantial pollution of the aquifer beneath Sydney’s eastern suburbs caused by ICI’s chlorinated solvent manufacturing. The primary pollutant is EDC (1,2-dichloroethane), a persistent organic chemical and byproduct of PVC production. Orica committed A$167 million to a Groundwater Treatment Plant (GTP) designed to control contamination and provide high-grade industrial water to Botany Industrial Park, conserving roughly daily—around 0.5% of Sydney’s water consumption. Local residents were prohibited from using groundwater. By 2012, the GTP had been operational for seven years out of its intended 30-year duration.
Mercury emission incident, 2011
On 27 September 2011, Orica’s Botany facility emitted mercury vapour for nine hours, violating environmental regulations. Nearby air quality monitors detected these emissions, leading to notification of the Office of Environment & Heritage (OEH). The mercury originated from soil contamination caused by leaking pipes on-site. Environmental specialists underscored mercury's toxicity and its status as a global regulatory concern. NSW Environment Minister Robyn Parker publicly expressed strong dissatisfaction with the event. In January 2013, the NSW EPA launched a review into off-site mercury releases.
Mercury emission incident, 2012
On 17 January 2012, Orica disclosed another mercury leak at its Port Botany site, marking a second occurrence since August 2011. Air samples recorded mercury concentrations exceeding , more than twice the permissible limit of . The leak actually took place in December 2011 but was only reported to authorities in January. This breach occurred at the thermal desorption stack involved in the company’s waste remediation project at the carpark area, which was shut down during the event. The New South Wales Environment Protection Authority confirmed this incident was unrelated to a separate mercury emissions breach that happened in September at Orica's Beauchamp Road location.
Cyanide discharge incidents, 2012
On 8 June 2012, the Queensland Department of Environment & Science commenced legal proceedings against Orica in the Gladstone Magistrates' Court, accusing the company of 279 deliberate breaches of regulatory approvals concerning cyanide discharges into Gladstone Harbour. Authorities claimed that in January and February 2012, Orica released wastewater containing elevated cyanide concentrations into the harbour. The charges primarily addressed failures to inform the Department promptly rather than direct environmental damage.
Kooragang, New South Wales
In 2011, Orica encountered six significant chemical incidents across its Australian operations, involving releases of hexavalent chromium, arsenic, mercury vapours, ammonia, ammonium nitrate, and sulphuric acid at facilities near Stockton, Newcastle, Botany, Kooragang Island, and Port Kembla. Of particular note was an ammonium nitrate leak at Kooragang Island occurring just one day after the plant resumed operations. These events triggered a government inquiry in New South Wales, community consultations, and a temporary closure of the Kooragang Island site.
Hexavalent chromium release, 2011
On 8 August 2011, approximately one kilogram of hexavalent chromium—a carcinogenic substance—was emitted from Orica’s Kooragang Island plant into the air over roughly twenty minutes. This exposure affected about 20 employees and impacted around 70 residences in Stockton. Notification to authorities was delayed by sixteen hours and residents were informed only after three days. Subsequently, the NSW Environmental Protection Authority issued a Prevention Notice leading to the ammonia plant's shutdown. This incident prompted a parliamentary inquiry in New South Wales that concluded in February 2012.
Arsenic contamination in Hunter River, 2011
Effluent containing elevated arsenic levels entered the Hunter River on 19 August 2011 from Orica’s chemical facility on Kooragang Island. Although arsenic had not been utilized onsite since 1993, recent remediation efforts addressing a hexavalent chromium spill disturbed legacy arsenic deposits. These deposits leaked into a storage pond before contaminating the river. Arsenic concentrations reached 0.067 milligrams per litre, surpassing permitted limits. New South Wales Premier Barry O'Farrell condemned the event as indicative of systemic operational shortcomings following two spills within a two-week period and underscored community concerns regarding environmental safety risks.
Ammonia emission event, 2011
An ammonia release occurred at the Kooragang Island facility on 9 November 2011 when a relief valve vented gas to alleviate excess pressure in a liquid ammonia tank. Initial reports estimated over 900 kilograms released; however, this figure was later corrected to about 90 kilograms. The leak was identified after two railway workers in nearby Mayfield were hospitalized due to exposure effects. Emergency services responded with six fire units and a hazardous materials team. Despite Orica’s early statements minimizing public health risks, apprehension persisted amid ongoing legal proceedings initiated by the Environment Protection Authority related to an earlier hexavalent chromium leak at the same site.
Ammonium nitrate spill, 2011
On 7 December 2011, a leak involving over of a diluted ammonium nitrate solution (less than 35% concentration) occurred at the Kooragang Island chemical facility. Emergency responders, including a specialized HAZMAT unit, were dispatched to manage the situation. This incident took place shortly after the Environmental Protection Authority had permitted a section of the plant to resume operations. Local community members criticized Orica for not promptly informing them and called for the plant to remain shut down.
Hydrogen flare incident, 2012
On 8 January 2012, lightning struck and ignited hydrogen gas emitted from the plant, resulting in flames reaching heights exceeding from the hydrogen vent stack. The event was reported to authorities by nearby residents.
Sulfuric acid leak, 2011
On 16 December 2011, an estimated of concentrated sulfuric acid escaped at the Port Kembla chemical site. The leak was believed to have originated from a breach in the pipeline connecting ship to shore. The New South Wales Environmental Protection Authority voiced concerns regarding repeated safety issues at Orica’s facilities.
Explosion, 2007
On 10 September 2007, a collision between a truck transporting approximately 25 metric tons of dynamite under contract for Orica and a pickup vehicle near Monclova and Cuatro Ciénegas triggered an explosion that resulted in 28 deaths and over 250 injuries. Orica confirmed that among the fatalities were one employee and 27 contractors or civilians.