Orica warns rising gas prices hitting profits and jobs | Herald Sun


Joining the ranks of manufacturing industry leaders to call for immediate action on surging prices, Mt Calderon on Thursday said the nation’s gas market was “at a crisis point”.

Orica was in the “bizarre” situation where it could make more money converting imported ammonia into gas to sell locally than turning local gas into ammonia to be used in making fertiliser or explosives.

“This is driving people out of business,” the head of the explosives and chemicals maker told Business Daily.

The former BHP executive cautioned gas producers the abnormal prices they were extracting from their industrial customer base would lead to job losses. It would also generate public support for blunt measures such as a domestic gas reservation, he said.

“If producers keep cornering the market, that is what this will lead to,” he said.

“What do you think would happen today if a large mining company sold iron ore to BlueScope for double the price they sell for Japan? Surely it would not be long before the regulators would intervene.

Read complete article here:

Orica warns rising gas prices hitting profits and jobs | Herald Sun.

Post a Comment

WP-SpamFree by Pole Position Marketing