Orica Takes 100% of Initiating Explosives Systems Pty Ltd

1st April, 2003

Orica Limited today increased its ownership of the initiating explosives company, IES Australia, to 100% following the purchase of Ensign Bickford’s 30% share.

The purchase for $16 million is effective today.

IES Australia manufactures initiating explosives systems, such as detonators, detonating cord and boosters, which are sold to Orica Mining Services for use with explosives in mining and quarrying.

Orica CEO and Managing Director, Malcolm Broomhead, said; "The purchase immediately meets our strict financial targets and further underlines our commitment to support our best performing businesses. Full ownership will allow Orica to optimise its global explosives manufacturing assets.

"This move follows decisions on expansion of production of explosives at Yarwun in Queensland and at Kooragang Island in NSW," he said.

IES Australia operates plants at Helidon in Queensland and Deer Park in Melbourne.

In the 2002/03 Year, Orica Mining Services Australia/Asia was one of Orica’s best performing businesses with volumes up 11% on increased coal exports from Australia and improved margins.

Orica Explosives offers a range of products and services from the manufacture and supply of ammonium nitrate, packaged and bulk explosives and initiating systems, to providing a total blasting service to the mining, quarrying and construction industries. Orica manages the blasting process to deliver broken rock on the ground and optimise costs.

The Australia / Asia business operates in Australia, New Zealand, Papua New Guinea, China, Vietnam, Singapore, Indonesia, Malaysia,

Thailand, the Philippines and India. The Australian head office is located in Chatswood, Sydney.