Slide 1: Burrup AN Plant
For personal use only Burrup AN Plant
Slide 2: Transaction Summary
Transaction Summary For personal use only Orica, Yara and Apache have entered joint venture arrangements to: - build a 330,000 tpa AN plant on Burrup Peninsula - market and distribute explosives products and services to customers in the Pilbara region Compelling strategic rationale Strong cust
Slide 3: Summary of JV Arrangements
Summary of JV Arrangements For personal use only Yara is Manager Orica is Manager Full explosives NH3 AN Orica Mining offering Pilbara Ammonia AN Plant Services – Mining Plant Pilbara Customers (Yara 51%; Apache 49%) (Orica 45%) (Orica 45%) Other Orica explosives products & services Page 2
Slide 4: Rationale
Rationale For personal use only High growth AN market linked to increased iron ore volumes (> 10% CAGR 2010 – 2020) Key customers positioned low on global cost curve Commodity diversification for Orica into iron ore Enables full service offering to Pilbara customers Local AN plant critical
Slide 5: Burrup plant located close to high growth iron ore mines
Burrup plant located close to high growth iron ore mines For personal use only Announced capacity increases in the north west region (mtpa) Broome Burrup AN Plant >10% CAGR 1,100 Pilbara 888 Western Australia 400 Kwinana 2010 2015 2020 Page 4
Slide 6: AN Plant Summary
AN Plant Summary For personal use only Joint venture to build and operate 330,000 tpa AN plant in the Pilbara Joint venture interests - Orica 45% - Yara 45% - Apache 10% Joint venture company is called Burrup Nitrates Pty Ltd Capital cost ~US$800m* (Orica’s share 45%) - includes fixed price
Slide 7: Sales and Distribution
Sales and Distribution For personal use only Joint venture to market and distribute full range of explosives products and services to customers in the Pilbara Joint venture interests - Orica 45% - Yara 45% - Apache 10% Joint venture company is called Orica Mining Services Pilbara Pty Ltd Ori