Australian explosives maker Orica flags Ebola, coal risks (updated)

Glencore

Today 07:45

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    MELBOURNE, June 17 (Reuters) - Orica ORI.AX, the world's top supplier of commercial explosives, said on Wednesday it is facing a string of challenges around the world that could affect demand for its services, including Ebola and a coal mine collapse in China.
A few of the sites where Orica works in Africa could be hit by Ebola, and the mining services provider is trying to revive COVID protocols to protect teams and keep those operations running, Orica CEO Sanjeev Gandhi said at a Melbourne Mining Club event.
"I'm extremely concerned ... If Ebola enters a mine site, the mine site shuts down," he said. "It's in that part of Africa where there's a lot of resources so it might impact the entire industry."
Gandhi said the impact in the Democratic Republic of Congo appeared contained so far.  
Glencore GLEN.L, Barrick Mining ABX.TO, and China's CMOC 603993.SS are among the operators of large copper and cobalt mines in Congo. Barrick said last month it had increased Ebola precautions. 
The head of Africa's Centres for Disease ​Control and Prevention warned this week that the outbreak in Congo could be the worst ever. 
Other issues the Australian company is tackling include a spate of sudden regulatory changes in Indonesia and challenges in China's coal industry following a gas explosion at a mine last month, which could lower coal output in the country.
"My expectation is that coal production in China will be massively curtailed. There'll be a lot of scrutiny, license checks, safety checks, that's going to create further disruption in the energy markets," he said. 
Coal will be a "very, very attractive commodity" while oil and gas supply chains adjust after the Iran war is resolved, he said.
Orica is in the midst of a strategy refresh that includes bolstering its exposure to gold and copper mining, Gandhi said, adding that under-investment in exploration means demand and prices for those commodities will be higher for longer.
The company is also building a new division that will harness AI using the proprietary data it collects from drilling and blasting to tailor mine plans in real time for its customers, which it expects will raise industry productivity.

 (Reporting by Melanie Burton in Melbourne; Editing by Christian Schmollinger and Sonali Paul)
 ((christine.chen@thomsonreuters.com; +61 2 9171 7119;))