Melbourne-Incitec Pivot Ltd., citing a deteriorating outlook for mining and the use of explosives, has cut its earnings guidance to A$450 million after taxes for 2009. Earnings for 2008 were A$653 million. IPL said its Dyno Nobel business in North America has been slow, with coal production cutbacks in the Powder River Basin and accelerating softness in the quarrying and construction sector. It expects Australian demand to keep pace with 2008; however, it says that a forecast lag in demand growth pushes the demand and supply balance out 12 months, to 2014 rather than 2013. As a result, IPL has decided to slow the construction of the A$935 million, 330,000 mt/y Moranbah ammonium nitrate project in Queensland. While mechanical completion will now be up to 12 months later than planned, IPL said beneficial operation will commence in the fourth quarter 2011, only six months later than previously expected. IPL, which bought Dyno Nobel in 2008, opted to revive the Moranbah project last summer (GM Aug. 8, 2008). Dyno Nobel had shut down the project in late 2007 (GM Dec. 17, 2007).
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