Orica Limited today announced that Malcolm Broomhead, Managing Director & Chief Executive Officer would be retiring early for health reasons effective 31 August 2005.

Mr Broomhead said "I have been recently diagnosed with a medical condition, lymphoma, and I have been advised that I need to focus significant time on improving my health. I am fortunate that it was diagnosed at an early stage and that my prognosis is good. I am totally determined to conquer this condition, however its impact is such that I cannot do the right thing by my family, myself or this wonderful company by continuing in the role of CEO. Orica is now well positioned to continue to provide productive growth. I feel privileged to have had the opportunity to lead Orica over the past four years and to have worked with a great team of people and a great Board. Once my condition has been dealt with, I fully expect to return to business life."

Orica’s Chairman Don Mercer expressed sincere appreciation for Malcolm’s enormous contribution and achievements over the past four years. "On behalf of the Board, the company and its employees, I want to express our heartfelt thanks to Malcolm", Mr Mercer said. "Everyone at Orica wishes Malcolm a speedy recovery. He leaves with our best wishes to him and his family."

Mr Mercer announced that Graeme Liebelt, currently Executive Director & CEO Mining Services will succeed Mr Broomhead, effective 1 September 2005.

Mr Mercer said "Graeme is a very experienced executive with broad experience in a range of Orica’s businesses. His succession reflects the performance and growing importance of the Mining Services business which is already more than half of Orica’s portfolio. Since taking over the position of CEO in Mining Services in late 2000, earnings for that business more than tripled under Graeme’s leadership. The Board and I very much look forward to continuing to work with Graeme."

Mr Liebelt said "On a personal note, I have enjoyed a strong working relationship with Malcolm and like others would wish that circumstances were otherwise. I respect the decision that Malcolm has made and wish him and his family well."

"I am honoured and pleased to be taking over the leadership of this great company. I look forward with confidence to working with the Orica team to build on the strong culture, maintain the focus on delivering above average returns for our shareholders, and continue the remarkable transformation of the company which has commenced over the past four years."

Mr Liebelt’s resume is set out in Appendix 1. Details of his remuneration package are being finalised and will be announced in due course.

In order to ensure a smooth transition, the company has retained the services of Mr Broomhead on a consultancy basis for a year so that the company can continue to have access to his knowledge and expertise. Details of Mr Broomhead’s retirement benefits and his consultancy are set out in Appendix 2.

An announcement of Mr Liebelt’s successor to the Mining Services role will be made in due course.

Since October 2000 CEO of Mining Services, originally based in Denver Colorado, now relocated to Melbourne. Mining Services is Orica’s largest business platform and is the world leader in commercial explosives and services to the mining, quarrying and construction industries. Director of Incitec Pivot from 2003 to 2005.

Orica Mining Services operates in more than 40 countries, with approximately 6000 employees. Between 2001 and 2004 profitability increased from $88 million to $270 million.

Joined the Company in 1989 in the Consumer Products group and was Managing Director of Dulux Australia from 1995 to 1997. Became an Executive Director in 1997. Chairman of Incitec from 1998 to 2000.

Prior to Orica worked as a Management Consultant, as Marketing Director for Repco, Marketing Director for Philip Morris, and Lecturer in Economics.

BEc (Hons) from Adelaide University. Member of the Australian Institute of Company Directors, member of the Council on Australia Latin America Relations.

Married with two children.

As previously announced to the market on 29 October 2004 at the time of extension of Mr Broomhead’s service contract, upon cessation of his employment Mr Broomhead is entitled to receive a lump sum payment of $4.186m representing two years fixed annual remuneration and 60% of his fixed remuneration in recognition of foregone incentives.

Under the consulting agreement with Mr Broomhead, he will be entitled to receive $2m over the length of his consultancy period