TOXIC leaks at Orica's troubled Kooragang Island plant have cost the chemical and explosives supplier more than $40 million this financial year.
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Speaking at the company's annual meeting in Melbourne yesterday, the chief executive, Graeme Liebelt, said the recent leaks had damaged Orica's reputation and were an ''enormous wake-up call''.
''This is completely unacceptable and I offer my sincere apologies to whoever has been affected,'' he said.
Orica shut several plants on Kooragang Island near Newcastle after a leak of hexavalent chromium in August and a separate ammonium spill in November.
Mr Liebelt said the shutdown had cost the company $4 million a week, a total cost of between $40 million to $50 million this financial year. This figure was likely to increase.
''There's a lot of damage to the reputation of the company in that local community particularly, and in NSW, that's where it's most intense,'' Mr Liebelt said after the meeting. ''I don't know how to rectify that. The reality is we've just got to demonstrate a period of improved performance before that trust will be returned.''
Orica resumed ammonium production at Kooragang Island earlier this week, and has been granted permission to restart all operations at its Newcastle plant.
Orica was also addressing the concerns about a lack of communication immediately after the leaks, Mr Liebelt said. There have been no legal claims made against the company, he said.
But there was some good news, with the company increasing its net profit by 4 per cent for the year to September 30 to $642.3 million.
Mr Liebelt said the mining sector's appetite for explosives continues to grow.
''We head into 2012 with momentum and a strong and proven business strategy,'' he said. ''There are more explosives used per tonne of mineral produced, more cyanide used per tonne of gold produced.'' Shareholders received a final dividend of 53 per cent per ordinary share.
The managing director was less positive about the company's Minova underground mining services business.
He said the strong Australian dollar, lower volumes in China and increased competition in North America and parts of Europe had resulted in a 29 per cent drop in Minova's earnings before interest and taxes.
In July 2010 the company sold off its Dulux Paint business.
