Orica chief executive Alberto Calderon argued today that the gloom surrounding the mining industry was overdone, saying it would continue to grow.
Orica chief executive Alberto Calderon argued today that the gloom surrounding the mining industry was overdone, saying it would continue to grow.
Speaking to journalists after a WA Mining Club presentation in Perth, Mr Calderon said the extraordinary boom of the past decade would not be repeated, but that did not mean the industry would not expand.
“There will still be growth in opex, there will still be growth in volumes, there will still be growth in brownfields, but not in new projects,” he said.
“When somebody says we’re in a glut for 10 years, we’re going to be depressed for 10 years, that’s not true.
“It will still grow, maybe not next year, but way before 10 years.”
Mr Calderon said he was encouraged by discussions with Orica’s customers.
“When I talk to our customers, I get the sense of saying, well let’s get on with it,” he said.
Mr Calderon told the Mining Club audience that the industry nonetheless had to adjust to the slowdown.
“Regardless, our reality has changed,” he said.
“All companies that have a vested interest in the sector have had to look at redefining themselves given the current environment, and the mining industry has done an outstanding job of this.
“While the cycle will inevitably turn back in our favour, we have to accept this paradigm shift and if we are to thrive in this new environment, adapt.“
Mr Calderon said Orica, which is a major global supplier of mining services, including explosives, was taking a long-term view.
“While the current environment presents serious challenges, we are playing a long game,’’ he said.
“We have a 140-year legacy – a testament to our resilience and adaptability.
“We believe that over the next few years, we will be able to grow our business.”
Orica’s major projects include an ammonium nitrate plant being developed jointly with Norwegian company Yara International on the Burrup Peninsula.
Mr Calderon said the ramp-up to full production may be slightly delayed, after start-up in the second half of this year.
“It will take a bit longer to run at 100 per cent but in the scheme of things not long,” he said.
