Orica today announced that through its subsidiary PT Kaltim Nitrate Indonesia (KNI) it had agreed to purchase 10 hectares of land in the Kaltim Industrial Estate in Bontang, East Kalimantan. It is proposed that a world scale industrial grade Ammonium Nitrate plant will be built on the land to supply the burgeoning Indonesian resources sector with high quality commercial explosives.

“Orica has been working for many years on this project and purchasing land is the first step in what we believe will be a very successful project,” said Philippe Etienne, CEO of Orica Mining Services.

“We have been working very closely with the Indonesian Government from the President down in order to bring this project to fruition”.

“I would like to put on record our thanks to the Minister for State Owned Enterprises, Sugiharto, the President of KADIN, the Indonesia Chamber of Commerce, Mr M. S. Hidayat and our host for today Mr Mohammed Lutfi, Chairman of BKPM, the Indonesian Investment Board,” Mr Etienne said.

Once fully approved by the Orica Limited Board of Directors it is anticipated that Orica will commit over US$200 million to the design and construction of an Ammonium Nitrate manufacturing facility at Bontang. The facility will produce between 250,000 and 350,000 tonnes per annum and will replace imports into the Indonesian market.

“Orica will begin work immediately on detailed planning and engineering work, we look forward to working closely with the other companies at the Kaltim Industrial Estate and the local authorities to produce a project that is a true credit to Indonesia,” Mr Etienne said.

Orica Mining Services is the global leader in the supply of commercial explosives to the mining and quarrying industry. Together with its local partners Orica Mining Services is the largest supplier of commercial explosives and detonating systems to the Indonesian resources sector.