Orica launches US counter-suit over explosives contract

The news: Commercial explosive and blasting systems provider Orica is in a US legal battle over a purchase agreement with ammonium nitrate supplier CF Industries.

The numbers: The two companies filed opposing lawsuits within one day of each other last week. Orica shares were trading 1.8% lower at $14.40 at 2:30pm AEDT on Wednesday.

The context: Orica has had a long-term ammonium nitrate supply contract for its North American operations with CF since 2014. Ongoing contract prices were to be determined by the lower of a combination of gas price movements and inflation and CF's market prices for explosive products. Orica said there would be no impact on its product supply in North America during the litigation and the issue would not impact the company's full-year results on 9 November.