Orica and Guizhou Jiulian Industrial Explosive Material Development Co Ltd (“Jiulian Development”) have signed an agreement to work toward creating a new civil explosives, initiating systems and blasting services joint venture in China.
Orica CEO, Alberto Calderon, said, “The proposed joint venture would allow us to deliver increased value from our existing assets in China and reflects our interest in establishing a greater presence in the large Chinese explosives market with Jiulian Development, a respected player within the domestic mining industry with well established domestic relationships”.
It is proposed that Orica hold a 49% interest and act as manager of the joint venture. The parties will seek to incorporate relevant domestic manufacturing facilities for bulk and packaged explosives and initiating systems and it is not anticipated that Orica would need to make any additional capital contributions in the initial establishment and operation of the joint venture.
Orica and Jiulian Development will now work toward formalising the proposed joint venture and obtaining the necessary approvals.