Orica chairman Russell Caplan announced the board and Smith had agreed “a timetable” for Smith to step down from his managing director and CEO positions at the explosives and chemicals giant.

Smith, who had boosted the fortunes of gold miner Newcrest Mining, was hired with the task of transforming the explosives specialist business.

Caplan said an international search was underway for a replacement for Smith.

“The board set Ian a challenging brief and a demanding timeframe to lead a vigorous top-to-bottom transformation of the company,” he said.

“As a result Orica today is a stronger, more resilient company.”

Smith said by the end of his fourth financial year with the company, the transition of Orica’s strategy, structure and operating model would be well advanced.

“The transformation program that we have undertaken has enabled Orica to adopt a business model that delivers a more sustainable profile through all parts of the resource commodity cycle,” he said.

“Orica’s transformation to a pure play, global mining services company has been achieved, its cost profile has been significantly reduced and its focus on delivering value-adding solutions to the resources and infrastructure sectors has been sharpened.”