Orica reported a net profit after tax and individually material items of $A253 million for the six months to March 31, down $11 million on the same period last year.

The company said Kooragang Island had cost it $90 million in earnings before interest and tax in the period.

The ammonia plant restarted in February.

“The impact of Kooragang has been predominantly felt in the Orica Mining Services business, with a six per cent decrease in EBIT down to $313 million versus the previous corresponding period,” Orica managing director and chief executive Ian Smith said.

The EBIT for the chemicals business rose 1% to $96 million.

“Demand from mining markets remained strong, particularly for sodium cyanide and emulsifiers,” Smith said.

He said Latin America had performed well but industrial markets in Australia and New Zealand had been subdued.

“We are pleased with the significant progress we have made in the period in establishing a presence in the high-growth Pilbara iron ore market in Western Australia,” Smith said.

“The proposed joint venture with Yara and Apache for the manufacture and distribution of ammonium nitrate in the region represents a unique opportunity to establish a leading position in this market, with reduced capital risk.”

Smith said a restructuring program was underway to make the company more accountable and more customer and community focused.

Orica has forecasted higher NPAT for 2012.

Shares in Orica were unchanged at $26.54.