Orica feeling Burrup pain

ORICA is feeling the fallout from production problems at the Technical Ammonium Nitrate plant on Western Australia’s Burrup Peninsula it runs with Yara with rival Dyno Nobel winning an explosives products and services supply contract with Fortescue Metals Group.

Orica feeling Burrup pain Orica feeling Burrup pain Orica feeling Burrup pain Orica feeling Burrup pain Orica feeling Burrup pain

Orica is feeling more pain from maintenance problems at the Burrup TAN plant.

The existence of that TAN plant in the heart of WA iron ore country recently helped Orica wrest the likes of BHP and Roy Hill from Dyno Nobel.

However, production at the TAN plant has been blighted by unplanned maintenance issues tied to quality issues with its heat exchangers.
Those repaired heat exchangers are expected to be replaced in the second half of the 2018-19 financial year.

However, adding to Burrup problems, there is a major turnaround planned for the upstream ammonia plant run by Orica's TAN plant partner Yara.

Speaking earlier this year Orica CEO Alberto Calderon said if the Burrup TAN plant reached even 60% reliability the company would have a better FY19.

With the Burrup TAN plant playing up, Orica has been forced to bring in ammo...