• EBIT contribution from Mining Services down 2% to $993M.
• The contribution from explosives products was in line with last year after adjusting
for the prior year impact of the Kooragang Island shutdowns and asset sales.
• Globally, total explosives volumes were down 2% with reduced demand in US coal markets and Latin America partly offset by growth in the Pilbara iron ore region, South Eastern Australian coal markets and the emerging markets of Africa and Russia.
• Improved product mix with bulk emulsion volumes up 6% offset by a reduction in AN volumes down 10%. Declines in explosives volumes in North American coal markets and the Latin American market have been offset by higher margin sales to US metals markets, improved customer mix in Latin America and higher volumes in Australia.
• Pricing for explosives has been flat to slightly down in most markets apart from North
America, where modest price increases have been achieved.
• Strong growth in Electronic Blasting Systems (EBS) with volumes up 11% versus the pcp.
• Increased contribution from mining chemicals.
• Significant decline in contribution from ground support products and services due to weaker demand and continued pricing pressure. One-off costs of $29M in integrating the ground support business into Mining Services were incurred during 2013.