Its crystals (normally quartz) and metal shavings encased in resin.

Supposedly it generates orgone energy as discovered by Wilhelm Reich http://en.wikipedia.org/wiki/Wilhelm_Reich

Its one of those things that hasnt been measured though Reich claimed he did prior to his arrest and alleged assasination so its impossible to say for certain if it does any thing at all.

Reich used layers of organic and non organic matter in his orgone accumulators but there is nothing organic about orgonite.Though there now is organic resin available.

I have been making the stuff and experimenting with it for several years and to be honest cant say either way if it does anything.
I continue to experiment.

It certainly seems to work as a placebo if nothing else and makes great gifts.

A google of the word "Orgonite" will give loads more info.