Tag Archives: Sanjeev Gandhi

Orica and Caterpillar set for mine to mill collaboration

Orica’s Digital Solutions segment continues to make major inroads across the mining value chain, with its latest mine to mill initiative set to involve a collaboration with Caterpillar.

Speaking during the company’s FY23 financial results webcast, Sanjeev Gandhi, Orica Managing Director and Chief Executive Officer, said demand for software, sensors and data science continued to increase as orebodies become increasingly hard to find and extract against a backdrop of high commodity prices and increasing ESG obligations and commitments.

“Customers are continuing to seek operational efficiencies across the mining value chain and unlocking the value of digitisation and automated workflows is key to achieving these efficiencies,” he said.

Orica was reporting Digital Solutions’ first full year result, with Gandhi highlighting a doubling of earnings alongside a significant improvement in margins.

“This was driven by growth across all three sub-verticals, namely Orebody intelligence, Blast design and Execution solutions, GroundProbe,” he said.

The Digital Solutions business has been identified as one of Orica’s key growth verticals as it continues to build and invest in the next generation of digital technologies and solutions, beyond its blasting core.

This was witnessed during the company’s most recent financial year, when, among other developments, it acquired Axis Mining Technology, a leader in the design, development and manufacture of specialised geospatial tools and instruments for the mining industry; as well as released what it said was its most innovative fragmentation monitoring solution yet, FRAGTrack Gantry.

Gandhi said: “Innovation continues to be a focus, and this year we have released 15 new digital features, with a focus on artificial intelligence-based solutions to support our customers.”

And, as the industry and Orica’s customers look to solve their biggest challenges through partnership, Gandhi announced its new collaboration with Caterpillar, saying the two companies had signed a memorandum of understanding (MoU) to explore opportunities to integrate key elements of their respective domains.

He explained: “The initial focus will be on the potential integration between Orica’s Rhino™, BlastIQ™ and FRAGTrack™ technologies with Cat® MineStar™ Terrain technologies.”

Rhino (graphic pictured above) is an autonomous drill string-mounted geophysical sensor that measures unconfined compressive strength while drilling. It enhances orebody knowledge in real-time, enabling miners to make better blast planning, improve fragmentation profiles and increase throughput, according to Orica. The technologies in the BlastIQ platform, meanwhile, are, Orica says, designed to deliver economic and operational value individually, with the benefits maximised when integrated in a systemised process. And finally, FRAGTrack is Orica’s state-of-the-art fragmentation measurement tool designed to provide rapid insights into the outcome of blasting processes.

Caterpillar says of MineStar Terrain: “Cat MineStar Terrain uses high-precision guidance technologies, material tracking and more to help your machines work according to plan – increasing efficiency, reducing variability and helping you get the most out of your drilling, digging, loading and grading operations…The solution helps you increase drill capacity, crusher throughput and material accuracy while driving consistency in payloads and bench heights.”

Gandhi said on this MoU: “The goal of this integrated workflow is to provide customers with high-fidelity rock property information enabling significant improvements to on-bench safety, drilling and blasting program accuracy and productivity, along with higher quality blast outcomes that generate enhanced mill performance.”

In the future, the two companies intend to extend their collaboration to optimisation of the entire value chain, from mine to mill, according to Gandhi, who said the approach aligned with both organisations’ ambitions to create sustainable solutions and services that will build the momentum for more intelligent and solution-driven mining ecosystem.

Orica and Alpha HPA strengthen high-purity aluminium ties

Orica has expanded its strategic relationship with Alpha HPA Limited, including acquiring a 5% equity interest and establishing a non-binding Memorandum of Understanding (MoU) to investigate the feasibility of establishing a new high-purity aluminium (HPA) manufacturing facility in North America.

The funds from the equity investment will be used to accelerate final engineering and product marketing for the full-scale HPA First Project at Gladstone, Queensland, and to advance feasibility studies on the potential of an additional HPA manufacturing facility in North America, with the remaining funds used for general working capital.

The non-binding MoU, meanwhile, will see the comapanies mutually investigate the technical and commercial feasibility of establishing a new manufacturing facility in North America to produce HPA products for the rapidly expanding future-facing industries in the region. The facility would seek to leverage and replicate the chemical process synergies that have been successfully established between Orica and Alpha HPA in the development of the HPA First Project at Gladstone. This would include the supply of process reagents and the offtake of process by-products to/from Alpha HPA’s and Orica’s manufacturing facility, supporting circularity between the two parties.

Orica and Alpha HPA previously executed binding, definitive agreements with each other related to the supply of process reagents and the offtake of process by-product to/from Alpha HPA’s First Project and Orica’s Yarwun manufacturing facility (pictured) within the Gladstone State Development Area in north Queensland.

Alpha HPA’s First Project represents the commercialisation of the production of circa-10,000 t/y equivalent of HPA and related products using the company’s proprietary licensed solvent extraction and HPA refining technology. The technology provides for the extraction and purification of aluminium from an industrial feedstock to produce 4N (>99.99% purity) alumina for the intended use within the lithium-ion battery and LED lighting industry.

Orica Managing Director and Chief Executive Officer, Sanjeev Gandhi, said: “Building on our successful partnership with Alpha HPA in Australia, we are thrilled to further expand our relationship and explore opportunities for growth and circularity in North America. The Alpha HPA First project in Queensland has demonstrated how industrial partnerships can optimise resource use, simultaneously creating value and reducing waste.”

Alpha HPA Managing Director, Rimas Kairaitis, said: “Having established a strong working relationship in developing our HPA First Project, the mutual ambition to expand our relationship into North America and establish Orica as a strategic shareholder in our company is a welcome progression of our relationship. Importantly, we see these initiatives as a strong endorsement of the ongoing development of our business.

“Orica has a detailed understanding of our process technology, the advanced nature of our marketing activities, and a strong appreciation of our commitment to building a sustainable business to help decarbonise critical future-facing industries. We welcome Orica as a new shareholder in our company and look forward to taking this exciting next step in our development together.”

Orica fills gap in Orebody Intelligence portfolio with Axis Mining buy

Orica has entered into a binding agreement to acquire Axis Mining Technology, a leader in the design, development and manufacture of specialised geospatial tools and instruments for the mining industry, as it looks to create a full-service Orebody Intelligence business that positions the ASX-listed company to become what it says is the industry’s first integrated, end-to-end, mine to mill solutions provider.

The acquisition represents a highly strategic acquisition and a valuable addition to Orica’s Digital Solutions platform, it added, saying Axis’ geospatial technology accelerates its capabilities to support new mineral discoveries required for decarbonisation. Axis’ gold and copper exposure also accelerates Orica’s broader commodity mix objectives.

At last week’s Investor Day presentation, Orica’s Chief Technology Officer, Angus Melbourne, highlighted the geospatial area as a “a gap” in the company’s Orebody Intelligence porfolio.

The binding agreement has seen Orica offer A$260 million ($180 million) in cash to acquire 100% of the share capital in the entities that own Axis, in addition to a deferred earn-out payment up to a maximum A$90 million. These amounts are to be funded through the proceeds of a fully underwritten A$650 million institutional share placement.

As part of the deal, Axis’ existing management team will enter into new employment agreements with Orica as part of the integration process.

Orica Managing Director and CEO, Sanjeev Gandhi, said: “Orica’s purpose is to sustainably mobilise the earth’s resources and achieving this starts with a better understanding of the orebody at the start of the mining value chain. I believe that Axis’ differentiated geospatial tools and instruments, combined with our existing suite of digital solutions, will provide compelling orebody intelligence to customers and support the delivery of the industry’s first end-to-end solutions platform, from mine to mill.

“The integration of Axis’ technology and expertise will accelerate our ability to support our customer’s digital transformation efforts around the world, helping them to operate more efficiently, sustainably and safely.”

Axis is a growing business that designs, manufactures and distributes specialised navigation instrumentation, data and drilling solutions for the mining industry. Axis has a differentiated market position, offering a comprehensive suite of tools and instruments to meet customers’ geospatial requirements, according to Orica. Its products are manufactured and assembled at Axis’ UK and Australian facilities, and distributed to over 30 countries.

Orica sticks with growth predictions as it completes Minova sale

Orica has completed the sale of its Minova business to the Aurelius Group for A$180 million ($131 million), with A$149 million of cash received at completion factoring in debt and “debt-like items”, as well as confirmed expectations that its first half performance is likely to representing year-on-year growth.

The company announced the planned sale of its rock reinforcement business back in December 2021, with the deal completed on February 28.

Orica additionally said that its first-half 2022 financial year performance, as previously announced at the 2021 full year results in November 2021, was expected to be stronger than the prior corresponding period (pcp). This, it said, reflects the positive momentum leading into the year associated with improved global commodity markets, which will result in volume growth in line with global GDP growth.

“Pricing discipline in contract negotiations is expected to broadly mitigate rising input costs and pass-through lags,” it explained. “Security of supply for Orica’s customers remains a priority in a tightening global ammonium nitrate market due to geopolitical issues and supply chain disruptions, which will result in increased trade working capital.”

All continuous manufacturing plants have been operating to required available capacity as determined by market demand, Orica said, and two planned turnarounds had been completed in the half year to date, namely the Carseland site-wide turnaround, which commenced in September 2021, was completed in October 2021; and the Yarwun turnarounds for two nitric acid plants, one ammonium nitrate plant and the emulsion manufacturing plant were all successfully completed in November 2021.

Orica Managing Director and CEO, Sanjeev Gandhi, said: “We’ve been able to maintain the positive momentum from the second half last year and remain on track to deliver a stronger first half than the prior corresponding period.

“With our refreshed strategy firmly in place, we are focussed on progressing on our four key business verticals and are well placed to leverage our strengths and seize opportunities in a tightening global market, while continuing to streamline the business.”

Orica, Origin partner on ‘Hunter Valley Hydrogen Hub’ feasibility study for Kooragang Island

Orica and Origin have announced a partnership to assess opportunities to collaborate on the development of a green hydrogen production facility, and associated value chain, in the Hunter Valley of New South Wales, Australia.

Signing a Memorandum of Understanding (MoU), Orica and Origin will conduct a feasibility study into the viability of a green hydrogen production facility, or ‘Hunter Valley Hydrogen Hub’, and downstream value chain opportunities.

The feasibility study will assess ways an industrial hydrogen hub could enable use cases that support a meaningful green hydrogen industry in the Hunter Valley and beyond, Orica said. This includes the supply of hydrogen for heavy industry and transport, conversion into green ammonia at Orica’s existing Kooragang Island ammonium nitrate manufacturing facility, blending hydrogen into natural gas pipelines and the potential to stimulate Australia’s hydrogen export industry.

Green hydrogen, produced via electrolysis using renewable electricity sources, has emerged as a potentially significant enabler of Australia’s transition to a lower carbon economy. The proposed hub would produce green hydrogen from recycled water sources and renewable electricity, using a grid connected 55 MW electrolyser.

Orica Chief Executive Officer, Sanjeev Gandhi, said: “We’ve been operating our Kooragang Island site for over 50 years, and are committed to ensuring both our manufacturing facility and the Newcastle region remain competitive in a low carbon economy, while also strengthening Australia’s domestic manufacturing capability.

“We support both the Federal and New South Wales Hydrogen Strategies, and this partnership will allow us to define opportunities and ways we can contribute to a more sustainable future for the region.

“This partnership aligns with our corporate strategy and our ambition to achieve net zero emissions by 2050, and our target to reduce our scope 1 and 2 operational emissions by at least 40% by 2030. By partnering for progress, we can drive sustainable change and achieve our decarbonisation ambitions, together.”

The project marks an important step in transitioning Orica’s business model towards a lower carbon economy, it said. Exploring opportunities to diversify, Orica is committed to ensuring its Kooragang Island facility remains competitive in a lower carbon economy, while creating more sustainable products for customers and broader applications for industry.

The project builds on several initiatives to enhance the long-term sustainability of the site, including the recently announced Kooragang Island Decarbonisation Project and planned installation of an Australia-first tertiary catalyst abatement technology for decarbonisation of nitric acid production. The A$37 million ($27 million) project is designed to deliver up to 95% abatement efficiency from unabated levels, reducing the site’s total greenhouse gas emissions by almost 50%.

Orica to install tertiary catalyst abatement tech at Kooragang Island ammonium nitrate plant

Orica has announced plans to install an Australia industry first tertiary catalyst abatement technology, EnviNOx®, at its Kooragang Island manufacturing plant in New South Wales.

The technology, provided by thyssenkrupp Industrial Solutions, is designed to deliver up to 95% abatement efficiency, reducing the site’s total greenhouse gas emissions by almost 50%, Orica said.

The A$37 million ($27 million) spent on the Kooragang Island Decarbonisation Project, which will help accelerate Orica’s progress towards achieving its 2030 emissions reduction target, will see proven nitrous oxide greenhouse gas (GHG) emissions tertiary abatement technology installed at its Kooragang Island plant from 2022, with commissioning in 2023, Orica said.

To facilitate the project, the New South Wales Government’s Net Zero Industry and Innovation Program will co-invest A$13.06 million, together with Orica’s A$24 million, financed by a five-year debt facility provided by the Federal Government’s Clean Energy Finance Corporation. The Clean Energy Regulator has also approved the project as eligible to generate Australian Carbon Credit Units (ACCUs).

Viewed as a long-term aid for emissions reduction in high-pressure nitric acid manufacturing plants, the tertiary catalyst abatement technology uses catalytic decomposition to destroy nitrous oxide emissions. Nitrous oxide, generated as a by-product of nitric acid production, is the primary source of GHG emissions at the Kooragang Island facility.

The technology will be installed across all three nitric acid manufacturing plants used in the production of ammonium nitrate at Kooragang Island. It is designed to eliminate at least 567,000 t/y of CO2e from the site’s operations, with expectations of reducing the site’s total emissions by 48%, while delivering a cumulative emissions reduction of at least 4.7 Mt of CO2e by 2030 based on forecast production.

Orica Managing Director and Chief Executive Officer, Sanjeev Gandhi, said: “The Kooragang Island Decarbonisation Project is a powerful example of a public-private partnership towards decarbonisation and marks a critical step in achieving our medium-term 2030 emissions reduction targets and progress towards our net zero ambition. We’re committed to working with our stakeholders to forge a pathway towards a lower carbon future together.

“Thanks to the support of the New South Wales and Federal Governments we have been able to co-invest and move forward on implementing a significant decarbonisation project.”

New South Wales Treasurer, and Minister for Energy and Environment, Matt Kean, said: “This is a great example of what can be achieved by hard-to-abate industries transitioning towards net zero emissions, under our A$750 million Net Zero Industry and Innovation Program announced earlier this year.”

Gandhi added: “The project ensures our domestic manufacturing operations remain competitive in a low carbon economy, bringing with it significant environment and regional economic and social benefits. There are also benefits for our customers, by reducing the emissions intensity of our ammonium nitrate we are in a position to offer competitive and lower carbon-intensity ammonium nitrate products, helping them to achieve their sustainability goals.

“It also allows us to look at longer-term investments in technologies, including production of hydrogen from renewable energy.”

The Kooragang Island Decarbonisation Project was approved in March 2021 by the Clean Energy Regulator to participate in Australia’s carbon market. Orica is eligible to generate ACCUs and was awarded the first optional Carbon Abatement Contract under the Facility Method for the purchase of around 3.4 million ACCUs by the Australian Government. This approach has enabled investment confidence by managing ACCU price risk, it said.

The findings from the Kooragang Island Decarbonisation Project will serve as an important Australian industry case study, demonstrating the potential for tertiary catalyst abatement technology to be deployed more widely across the sector, Orica said.

Orica has also recently partnered with the Alberta Government in Canada to commission a similar tertiary catalyst abatement technology at its Carseland ammonium nitrate manufacturing, reducing emissions by approximately 83,000 t/y of CO2e. It has also assigned approximately A$45 million over the next five years in capital to deploy similar tertiary abatement technology across its Australian ammonium nitrate sites, including its Kooragang Island site.

Orica addresses Scope 1, 2 and 3 emissions in latest GHG reduction pledge

Orica has announced its ambition to achieve net zero emissions by 2050, covering Scope 1 and 2 greenhouse gas (GHG) emissions and its most “material” Scope 3 GHG emission sources.

The ambition builds on Orica’s previously announced medium-term target to reduce Scope 1 and 2 operational emissions by at least 40% by 2030.

To advance its net zero emissions ambition, Orica says it will:

  • Continue to reduce its operational footprint: prioritising Scope 1 and 2 operational emissions reductions by deploying tertiary catalyst abatement technology, sourcing renewable energy and optimising energy efficiency and industrial processes;
  • Collaborate with its suppliers: as new and emerging technologies scale and become commercial, partner with suppliers to source lower emissions intensity ammonium nitrate (AN) and ammonia to reduce Orica’s Scope 3 emissions, which account for approximately 70% of Orica’s total Scope 3 emissions;
  • Prioritise lower carbon solutions: developing lower carbon AN, as well as new products, services and technology offerings to help customers achieve their own sustainability goals; and
  • Report progress: transparently disclose performance consistent with the recommendations of the Task Force on Climate-Related Financial Disclosure.

Orica Managing Director and Chief Executive Officer, Sanjeev Gandhi, said: “Our ambition of net zero emissions by 2050 shows our commitment to playing a part in achieving the goals of the Paris Agreement. This is a strong signal that the decarbonisation of Orica will, and must, continue beyond 2030 and requires a collaborative approach across all of our stakeholders.

“We’re making solid progress having already achieved a 9% emissions reduction in financial year 2020 (to June 30, 2020) and further reductions this financial year. We’ve taken our 2030 medium-term target and extended our planning over the long term, developing a credible roadmap to support our ambition to achieve net zero emissions by 2050.

“Over the next decade, Orica is deploying tertiary catalyst abatement, prioritising renewable energy opportunities and supporting a trial of carbon capture utilisation and storage technology. Beyond 2030, how we achieve our ambition is dependent on effective global policy frameworks, supportive regulation and financial incentives, and access to new and emerging technologies operating at commercial scale.

“Orica is a company with a long history of technical innovation which is already helping our customers improve mine site safety, productivity and efficiency. We will apply the same approach by deploying low-emissions technologies to our major manufacturing sites and working with our global suppliers and stakeholders on reducing the footprint of our supply chain.”

Orica says it has already undertaken several initiatives to drive action towards its medium-term target and support its 2050 net zero emissions ambition.

In FY2020, Orica’s Bontang AN manufacturing facility in Indonesia recorded a 43% reduction in net emissions and its Kooragang Island nitrates manufacturing plant (pictured below) in Australia achieved a 6.3% reduction in net emissions, by replacing and improving the performance of selective catalyst abatement technologies, the company said.

In partnership with the Alberta Government this year, Orica’s Carseland AN manufacturing facility in Canada has commissioned tertiary catalyst abatement technology, reducing emissions by approximately 83,000 t/y of CO2e.

Orica has assigned approximately A$45 million ($33 million) over the next five years in capital to deploy similar tertiary abatement technology across its Australian AN sites, which, it says, could deliver an annual reduction of 750,000 t CO2e.

Orica will also support the construction of a mobile demonstration plant of carbon capture, utilisation and storage technology at its Kooragang Island manufacturing facility, led by Mineral Carbonation International, in partnership with the Australian Government and the University of Newcastle. The plant is scheduled to be built on Orica’s Kooragang Island site by the end of 2023 and have direct access to some 250,000 t of captured CO2 from Orica’s manufacturing operations.