Explosives maker Orica has chosen former Newcrest Mining chief executive Ian Smith to succeed Graeme Liebelt as CEO.

Mr Smith will take the helm of the company on February 27, 2012 and Mr Liebelt will retire from Orica on March 31.

Mr Smith was Newcrest chief executive for five years and stood down from that position earlier this year.

Mr Liebelt’s contract was due to expire at the end of September 2012, but has agreed to leave Orica earlier given Mr Smith’s availability.

Mr Liebelt has led Orica for six years.

“The board is delighted to have secured the services of an experienced and successful chief executive to succeed Graeme,” Orica chairman Peter Duncan said in a stement.

“The board believes that the industry experience, strategic capabilities and leadership skills that Ian has already demonstrated in leading an ASX-listed company, provide the credentials for him to drive Orica’s global businesses into another period of dynamic growth.”

Mr Smith said Orica had the potential to extend its leadership in the mining services industry at a time of unprecedented growth in the mining industry internationally.

Mr Liebelt said he was still very excited by the growth potential for Orica’s businesses but wanted different career challenges after more than 20 years with Orica.

Mr Duncan said that Mr Liebelt had presided over significant growth at Orica, which included the acquisition of a large part of the Dyno Nobel explosives group.

Mr Liebelt had also overseen the demerger from Orica of the DuluxGroup paint business.

Shares in Orica were $1.39, or 5.77 per cent, higher at $25.49 on Monday.