CANBERRA: Australian chemical maker Orica Ltd said it would curb output and cut staff at a site in the state of Queensland, hit by faltering demand for explosives from the mining industry.
Orica said it would lower production of ammonium nitrate as supply outstrips demand, while 10 percent of the 220 staff employed at the Yarwun site are expected to lose their jobs.
“The fact remains that Orica is operating in a highly competitive market in which supply of ammonium nitrate is higher than demand levels,” said Dave Buick, Yarwun general manager.
Opened more than 20 years ago, the Yarwun site is capable of producing over 500,000 tonnes per year of ammonium nitrate, which is often used in explosives.
Australia’s decade-long mining boom went bust in 2012 as demand for mineral commodities to fuel industrial expansion in China waned. Staple Australian exports from iron ore and coal to copper and zinc in many instances sell for less than half their price in the boom years.
