TOXIC leaks at Orica's troubled Kooragang Island plant have cost the chemical and explosives supplier at least $40 million this financial year.
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Speaking at the company's annual meeting in Melbourne yesterday, chief executive Graeme Liebelt said the recent leaks had damaged Orica's reputation and were an ''enormous wake-up call''.
![Orica's chief executive Graeme Liebelt has admitted the recent leaks have damaged the company's reputation. Photo: Dean Osland Orica's chief executive Graeme Liebelt has admitted the recent leaks have damaged the company's reputation. Photo: Dean Osland](/images/transform/v1/crop/frm/silverstone-ct-migration/3dc11d3e-6d12-4800-8fd3-d0e3920a474d.jpg/r0_0_729_528_w1200_h678_fmax.jpg)
Orica shut several plants on Kooragang Island, near Newcastle, after a leak of hexavalent chromium in August and an ammonium spill in November.
Mr Liebelt said the shutdowns had cost the company $4 million a week, a total cost of $40 million to $50 million, and the figure was likely to increase. He said the spills damaged Orica's relationship with the community and its reputation as a reliable supplier of explosive chemicals to miners.
Orica resumed ammonium production at Kooragang Island earlier this week and has been granted permission to restart all operations at the plant.
But there was some good news, with the company increasing its net profit by 4 per cent for the year to September 30 to $642.3 million.
Mr Liebelt said the mining sector's appetite for explosives continued to grow. ''We head into 2012 with momentum and a strong and proven business strategy,'' he said. ''There are more explosives used per tonne of mineral produced, more cyanide used per tonne of gold produced.''
He was less upbeat about the company's Minova underground mining services business.
The strong dollar, lower volumes in China and increased competition in North America and Europe had resulted in a 29 per cent drop in Minova's earnings before interest and taxes. ''Minova, while continuing to lead the world in the ground stabilisation industry, has had a very tough year,'' he said.