Interruption of Gas Supply Kooragang Island

5th January, 2004

Orica Limited confirmed that the explosion at the Santos plant at Moomba South Australia has impacted the supply of gas to Orica's Kooragang Island facility in Newcastle.

The ammonia plant, normally supplied by Santos from the Moomba gas field, is currently running at 80% capacity with gas sourced from a range of suppliers. It is anticipated that operating costs at the Kooragang Island facility will increase for the duration of the alternative gas supply arrangements as a result of the higher gas supply costs. (Initial estimate approximately $1.5 million per month after tax.)

At this stage there has been no interruption to customers supplied by the Kooragang Island facility.

Orica is currently assessing the situation including determining the impact of restricted gas supplies on future production capability and anticipated customer demand and forecasts.

The Incitec Pivot Limited facility at Gibson Island in Brisbane is unaffected by the Moomba explosion as it sources its gas from Ballera gas field in Queensland.