OPINION: As Orica battles inflation and disruptions from geopolitical tensions, it is eyeing mining’s next big challenge: supplying the energy transition.
At first glance, the $350 million acquisition of a digital mining technology company by explosives giant Orica looks like an interesting strategic play.it – speaks to three of the big megatrends that will shape markets over the coming decades: the energy transition, inflation and geopolitical tensions.spend $260 million upfront and up to $90 million in earn-out payments
Chief executive Sanjeev Gandhi, who started talks with Axis a couple of months ago after watching the company closely for a few years, says Orica can now offer customers a suite of digital tools running from the mine to the mill, from a suite of orebody intelligence tools to help miners work out what resources they are sitting on, to blasting technology to reduce costs, waste and emissions, to tools to detect mine collapses and cloud-based technology to improve the efficiency of ore processing.
On Wednesday, he reaffirmed guidance for the 2021-22 financial year, with margin improvement to be driven by volume growth in line with gross domestic product growth, cost reductions and higher prices.Advertisement “There’s a lot of stuff going on in the industry that we cannot control, so I am being a bit prudent here. It has nothing to do with the underlying business. The underlying business is very healthy,” Gandhi says.
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