Global mining explosives and chemical company Orica has reached a settlement with suppliers CF Industries Sales LLC and CF Industries Nitrogen LLC to resolve litigation that began in October 2023, with no admission of liability by either party.

 

Under the agreement, Orica will pay US$169.5 million to CF in the second half of FY26, funded from existing cash and undrawn bank debt facilities.

 

“Orica has agreed to settle this litigation with CF following careful consideration and in the best interests of shareholders and customers. Our focus remains on executing our strategy, advancing our growth initiatives and delivering sustainable value for customers and shareholders,” said Orica Managing Director and CEO Sanjeev Gandhi.

 

Despite a CF plant closure and a claimed force majeure notice on 10 November 2025, Orica says it has maintained customer supply through its global manufacturing and supply network. 

 

Gandhi added: “Importantly, our actions have ensured there has been no disruption to customer supply, and we remain committed to strengthening security of supply for our customers through a diversified and resilient sourcing strategy in North America.”

 

Orica also announced it will acquire 100% of Nelson Brothers’ US explosives business, taking full ownership of its two joint ventures with Nelson Brothers Inc. Under the deal, Orica will pay US$25 million and retire US$48 million in existing debt. The acquisition is expected to close in 2H FY26 and be EPS accretive in the first full financial year of ownership.

 

The transaction will expand Orica’s presence in the US quarries and construction sectors, adding four emulsion plants, system magazines in key markets, and mobile bulk explosives units. The company expects an EBIT uplift of AUD$35 million per year once fully integrated.

 

Gandhi said the combined impact of the CF settlement and Nelson Brothers acquisition will “further strengthen our North American region, deliver immediate earnings benefits and support our strategy to grow in attractive downstream markets.”

 

Orica will now begin securing alternate long-term ammonium nitrate contracts in the US, supplementing supply from its global network to ensure resilience and continued profitable growth in a key market.