MINING services provider Orica plans to cut capital spending by more than $100m in 2009 as the economic downturn continues to spiral and demand for its products slows.
The explosives maker says in addition to its restructure it is considering delaying a planned Newcastle plant expansion and other projects.
The company says its capital budget cut is needed to keep a solid balance sheet.
Despite Orica’s limited spending it says it will continue work on its Kooragang Island ammonium nitrate plant expansion, expected to be sanctioned this year, but its plans have been stripped back to a minimum until demand returns.
The business claims a restructuring of European and North American mining services businesses would mean the loss of hundreds of jobs but at this stage there had been no major job cuts in Australia.
Orica says it still expects an eighth straight profit increase in 2009, despite more cuts to Australia's shrinking minerals production being on the way.
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