Australian explosives maker Orica flags Ebola, coal risks

Orica, world's largest supplier of commercial explosives said Wednesday that it is facing a number of challenges in the?world, which could impact demand for its products, such as Ebola, and a coal mine collapse in China.

Orica CEO Sanjeev Gandhi told a Melbourne Mining Club meeting that a few of the sites in Africa where Orica works could be affected by Ebola. The mining services provider has revived COVID protocols as a way to protect its teams and continue operations.

"I am extremely concerned... He said that if Ebola entered a mine, it would shut down the site. It's in the part of Africa with a lot of resources, so it could affect the entire industry.

Gandhi stated that the impact on the Democratic Republic of Congo appears to be contained so far.

Glencore, Barrick Mining and China's CMOC operate large copper and cobalt mining operations in Congo. Barrick Mining said last month that it increased Ebola prevention measures.

The director of Africa's Centers for Disease Control and Prevention, Dr.?African Centres? for Disease Control and Prevention warned this week that the outbreak could be the worst in history.

The Australian company also has to deal with a series of abrupt regulatory changes in Indonesia, and the challenges facing China's coal sector following the gas explosion that occurred at a coal mine last month. This could reduce coal production in China.

"I expect that coal production in China is going to be drastically curtailed. He said there would be more scrutiny, licensing checks and safety checks that will cause a 'further disruption' in the energy market.

He said that coal will become a "very attractive commodity" as oil and gas supply chains are re-aligned after the Iran War is over.

Orica is undergoing a strategy refresh that includes increasing its exposure to copper and gold mining. Gandhi said that by underinvesting in exploration, the demand for these commodities and their prices will remain high for longer.

The company is also building a?division which will use AI to customize mine plans for customers in real-time using data collected from drilling and blasting. It expects this will increase industry productivity. (Reporting and editing by Christian Schmollinger, Sonali Paul, and Melanie Burton in Melbourne)

(source: Reuters)