COMMUNITY REPORT 2018 - KOORAGANG ISLAND - Orica
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COMMUNITY REPORT 2018 KOORAGANG ISLAND
GENERAL MANAGER’S MESSAGE
Welcome to our 2018 community report. The purpose of this
report is to provide you with a summary of Orica Kooragang
Island’s operations and activities over the last 12 months.
Demand for our products in the Hunter Valley continued to
grow. As a result, the site produced more tonnes of ammonium
nitrate in 2017 than it ever has before. This achievement reflects
Bertus De Villiers the dedication of our employees and their commitment to
General Manager continuous improvement.
Orica Kooragang Island
The site’s largest undertaking in 2017 was the ammonia plant
turnaround. The multimillion-dollar maintenance project involved
the completion of more than 900 tasks including statutory
inspections, testing of safety instrumented systems, overhauling
relief valves and catalyst replacements. Major turnarounds for
the ammonia plant are conducted every six years and provide an
opportunity to carry out important works that will ensure the plant
can continue to operate safely and efficiently.
Environmental and safety performance remained a focus, with
our program to improve the way ammonia is managed on site
continuing throughout the year. The third and final flaring system,
designed to prevent ammonia emissions and their associated
odour, became operational. We also replaced the ammonia
pipeline that runs from the site to Kooragang Berth 2. This will
ensure the ongoing safe operation of our ammonia import and
export process.
During 2017 we supported 42 Newcastle-based groups with
around $272,000 in funding to deliver important projects for
the benefit of the region. We also continued to strengthen our
relationship with the community through our many engagement
activities including community reference group meetings,
newsletters and site tours. A community perceptions survey,
recently conducted on our behalf by the Hunter Research
Foundation, indicated a significant improvement in our reputation
since 2013. This has been very encouraging and a sign that our
actions and activities over the last few years are having a positive
impact. We will continue to strive to meet your expectations.
COMMUNITY
ENGAGEMENT INVESTMENT
Orica Kooragang Island is committed Community investment and sponsorship
to effective and targeted stakeholder activities are a central pillar of our
engagement, which is essential to gaining engagement approach.
the trust and support of our neighbours and
the broader community. We aim to make a lasting and positive contribution
to the community by supporting local initiatives
We work with the community to understand the and events. Through our Community Investment
needs, concerns and aspirations of individuals Program we fund a range of projects that
and organisations. In 2017 the site carried out a promote education and lifelong learning,
number of activities including: improve and protect the environment, and
build strong communities. In 2017 we provided
−− the production and distribution of a bi-monthly
around $131,000 worth of grants to 20
community newsletter delivered to residents
community groups.
in our neighbouring suburbs of Stockton,
Carrington, Tighes Hill, Mayfield East, Fern As well as providing grants through the
Bay and Maryville Community Investment Program, we also invested
around $141,000 sponsoring a range of other
−− regular Community Reference Group (CRG)
events, activities and organisations including:
meetings, a number of which featured
independent guest speakers to talk about −− Surfest’s Orica Team Challenge
specific matters
−− Harry’s House
−− regular site tours for the general community as
−− Chuck Duck Breakfast Club
well as special interest groups
−− Hunter District Cycling Club
−− employee attendance at community events
to answer questions and speak to people −− Newcastle Rotary Club
about our operations
−− Stockton Surf Life Saving Club
−− emergency response briefings for industrial
−− Carrington Starlight Cinema
neighbours as well as nearby schools and
aged care homes −− Mentor Support Network
−− one-on-one conversations with community −− Newcastle All Blacks
stakeholders to help us improve our
−− Museum Express
community engagement activities.
−− Newcastle Rowing Club
−− local sporting clubs.
In 2017 more than 200 students from 18 schools participated in our HSC Chemistry Education Program. The program provides a practical demonstration of ammonia production, which is a key part of the Chemistry syllabus. Students are given a guided tour of the ammonia plant and a presentation by a chemical engineer.
In 2017 Surfest’s
Orica Team Challenge
was held for the
fifth year running at
Stockton Beach.
SPONSORSHIP SNAPSHOT
Newcastle All Blacks Mentor Support Network Chuck Duck
We entered into a new three-year sponsorship agreement We continued our sponsorship of the Mentor Support For more than a decade we have sponsored the Chuck Duck
with the Newcastle All Blacks. The funding will help Network, which provides scholarships to local students charity. It runs a range of programs in numerous schools,
the local rugby league organisation participate in the experiencing hardship so they can achieve their educational aimed at helping all students but particularly those with special
annual NSW Koori Knockout, which is one of the largest goals. The organisation also offers training, professional needs. Programs include breakfast clubs, therapy birds, bush
Indigenous sporting and cultural events in the country. development and networking for its volunteer mentors. tucker gardens and child safety education.
COMMUNITY INVESTMENT PROGRAM CASE STUDIES
TAD Stockton Senior Citizens’ Association Charles O’Neill Hostel
A $10,000 grant supported the charity’s local volunteers With a grant of $8,800 the association installed The hostel used a $6,500 grant to provide pet therapy for
to produce unique and adaptable equipment solutions for three new split-system air conditioners in the its residents, including an on-site animal petting zoo and
people living with a disability. Mitchell Street hall. chicken hatching program.
Fern Bay Public School Curious Legends Miss Porter’s House
The school put a $6,000 grant towards its Literacy A grant of $10,000 assisted the local theatre company to A $9,000 grant was used to replace the damaged gate
for Life project, aimed at encouraging the students to deliver the Hidden Port project which involved community and picket fence at the historic Miss Porter’s House in
read. The funding enabled the school to purchase more workshops, performance activities and a writing/ Newcastle West. The house is the only National Trust
than 300 new books. photography competition. property in the city.
Applying for a grant with the Community Investment Program
Every year two rounds of funding are offered. The first round opens on 1 March and the second round opens on 1 September.
Information and documentation is available on our website orica.com/kooragang
2017 KEY EVENTS
January April July
The third and final flaring system, designed A monitoring program commenced A nitric acid and an ammonium
to capture ammonia emissions, to evaluate the impact of nutrient- nitrate plant were temporarily shut October
became operational. rich groundwater on the north arm down to undergo planned
Works to upgrade the
of the Hunter River. maintenance.
stack on the No 1 nitric
February Miss Porter’s House in We hosted a breakfast to acid plant commenced.
Newcastle, the only National Trust congratulate recent recipients of
The ammonia plant was temporarily Through our Community
property in the city, unveiled its new grants from our Community
shut down to undergo six-yearly Investment Program, we
fence which was funded by our Investment Program.
planned maintenance. supported Variety
Community Investment Program.
to provide scholarships
We replaced the old ammonia
We sponsored the Harry’s to children who are
export line that connects the site to August
House car rally. disadvantaged or living
the K2 berth.
with a disability.
Fern Bay Public School launched its new
The Orica Team Challenge and
library space, which was supported by a grant
3 Peas Markets, part of Newcastle’s May
from our Community Investment Program.
Surfest, took place at Stockton Beach. We increased use of recycled water across the site, November
The annual joint emergency response exercise
a move that will help save up to 2.9 billion
was held at the site with Fire and Rescue Our new general manager,
litres of potable water per annum. Bertus De Villiers,
March NSW and NSW EPA.
The Orica Harry’s House Charity started at the site.
Orica’s CEO, Alberto Calderon, Shield was held at Lynn Oval Stockton.
We presented a cheque for more than $60,000
visited the site to inspect activities being to the Newcastle Middle School. The
undertaken during the ammonia plant’s Through the on-site medical centre, employees funds were raised through a safety incentive
December
maintenance shutdown. participated in a blood pressure and scheme during the ammonia plant maintenance
cholesterol testing program. shut down. We joined forces with
We commenced a new three-year
the Medowie
sponsorship with the Newcastle All Our HSC Chemistry Education
program kicked off, with more than 200 Lions Club to pack
Blacks, a local Indigenous rugby league Christmas hampers for
organisation. students registered to attend.
September local families in need.
Stockton Landcare planted over 100
The Orica Mick Chapman Road Construction began
native seedlings, which were purchased
Race was held at the Hunter Economic on the new
with one of our community grants. June
Zone near Kurri Kurri. cooling tower in
To mark World Environment Day, employees the nitrates area.
The site set a new record for
participated in a tree-planting challenge.
ammonium nitrate production.
Our graduate engineers took part in Newcastle’s
annual Sleep out for Soul event.
IN 2017 WE...
PAID PAID SENT OUT AROUND
ACHIEVED EMPLOYEES CONTRACTORS
430 CONDUCTED
$24.2M $20.6M 30,000
96
newsletters and
6,000
days without a
recordable injury
occupational
community reports
hygiene tests
M (50%) HU
NT
.7
PERFORMED
114 ER
78 =$ = INVESTED
$272,000
S
$4
EA
6.
periodic health in community sponsorships,
RS
4M
grants and
OVE
assessments SPENT TO HELP
(20%
$230M 42
donations
HAD
)
189 2 RAN
MILLION
beneficiaries
AU S T
workers participate in a on goods and services HELD
%)
CONDUCTED
41 4
RA
stop and think program to emergency
(17
LI
identify hazards & controls response
M
A
$2 site tours community
.7
exercises 9
=
9. 3 reference group
INVESTED 2M =$
(1 3 % NSW
meetings
$76M
CONDUCTED )
BUSINESS WITH
HOSTED
269
CONTRIBUTED AND SUPPORTED
313
in capital works AN ADDITIONAL
AN ADDITIONAL
local suppliers
$77M 990
FTE jobs
visitors
to the local economy
Orica employees marked
World Environment Day by ENVIRONMENT
taking part in a tree-planting
challenge at Kooragang.
At Orica Kooragang Island we ensure that
responsible environmental management is
integrated into all aspects of our activities.
We are always looking for opportunities to improve our PM2.5 PARTICLE
environmental performance and during the 2017 financial
year we progressed and completed a range of projects.
CHARACTERISATION
The site has been identified as a contributor to fine
particulate matter (PM2.5), in the form of ammonium
AMMONIA MANAGEMENT nitrate, at the Stockton air quality monitoring station. In
IMPROVEMENT 2017 activities required by a Pollution Reduction Program
(PRP) were completed including:
We are investing more than $100 million to improve the
way ammonia is managed at the site. −− further analysis of samples from the air
monitoring station
In 2017 the third and final flaring system, designed to
prevent ammonia emissions and their associated odour, −− identifying sources of ammonium nitrate at the site
became operational. In addition, the ammonia pipeline
−− identifying technologies to reduce PM2.5 emissions.
between the site and Kooragang Berth 2 was replaced.
This will ensure the ongoing safe operation of the site’s A report has been submitted to the NSW Environment
ammonia import and export process. Protection Authority.
REMEDIATION RECYCLED WATER PROJECT
The site has lodged a development application with In 2014 we started using recycled water in the ammonia
the NSW Department of Planning and Environment to operations, a move that has been saving the Hunter region
construct a cap and containment arsenic remediation up to 2.3 billion litres of drinking water per annum. Last
system. To support the application, an environmental year we also switched the nitrates operations over to
impact assessment was completed last year and publicly recycled water, taking potable water savings up to 2.9
exhibited. The remediation project will commence as soon billion litres per annum – an increase of 25 per cent. The
as approval is granted. recycled water is delivered via an 8km pipeline from a
plant in Mayfield West owned by Water Utilities Australia.
Since signing up for the scheme, Orica Kooragang
NUTRIENT MANAGEMENT Island has shifted from being the largest consumer of
A monitoring program to investigate soil and groundwater drinking water in the region to the 19th largest consumer.
nutrient contamination, both on and off our Kooragang Using recycled water has significantly reduced the site’s
Island site, was completed in 2017. An ecological risk environmental footprint.
assessment will be submitted to the NSW Environment
Protection Authority this year.MAJOR PROJECTS Up to 450 extra workers
were on site during
the ammonia plant
turnaround.
AMMONIA PLANT TURNAROUND SAFETY SCHEME
In February 2017 the ammonia plant was temporarily shut During the turnaround workers participated in a safety
down to undergo planned maintenance. The multimillion- incentive scheme, Play it Safe for the Kids. For every injury-
PAID
dollar project, otherwise known as a turnaround, saw PAID free day Orica, along with the contracting companies
the completion of more than 900 tasks. Some of the key
EMPLOYEES involved in the turnaround, donated money to the scheme.
CONTRACTORS
activities undertaken included: $24.2M $20.6MMore than $60,000 was raised for the Newcastle Middle
School, which plans to use the funds to purchase new
−− statutory inspections
equipment and install a sensory play area. The school
−− testing of safety instrumented systems creates quality educational pathways for students with
significant disabilities.
−− inspection, overhaul and setting of relief valves
−− catalyst replacements
NUMBER CRUNCH
−− installation and upgrading of equipment
260K
−− general maintenance.
260K
Major turnarounds for the ammonia plant are conducted up to
every six years and provide an opportunity to undertake
hours worked UP TO to
important works that will ensure the plant can continue
hours worked
450
operate safely and efficiently.
450 929 extra people on site
extra people on site tasks completed
1402
NEW CATALYST
929
Catalysts are used in the ammonia plant to initiate certain 188 welds completed
70
tasks completed
chemical reactions during the manufacturing process relief values overhauled
1402
and over time need to be replaced to maintain their
effectiveness. During the turnaround five different types
welds 18 pressure vessel
of catalysts were replaced and activated. Onecompleted
of them inspections
188
was the high temperature shift (HTS) catalyst, which capital projects
was involved in the 2011 hexavalent chromium incident. completed
relief values
70
However, the HTS catalyst installed during the 2017
overhauled
turnaround was specifically designed to contain only trace
amounts of hexavalent chromium. This change, along with
pressure vessel
modifications to procedures and equipment, inspections
will ensure
18
such an incident cannot happen again.
capital projects
completedA joint emergency response
exercise was held in August HEALTH AND SAFETY
2017 with NSW Fire and
Rescue and other agencies.
At Orica, safety is our priority, always. This value
underpins our commitment to the health and
wellbeing of our people, our visitors and
the community.
SAFETY HEALTH
At Orica Kooragang Island we have an uncompromising Orica Kooragang Island has an on-site medical centre,
focus on hazard identification, risk assessment and which is staffed during business hours by an occupational
risk management across all our work. Important safety health nurse and visited by a doctor for four hours a week.
achievements and activities for the year included: This ensures that we not only look after the safety of our
employees but also their health and wellbeing. During 2017
−− notching up 430 days without a recordable injury
the medical centre conducted periodic health assessments,
−− 189 employees and contractors participating in a Stop skin checks, flu vaccinations and drug and alcohol testing.
and Think safety awareness program Other achievements included:
−− operator refresher training for working in −− a month-long program offering blood pressure and
confined spaces cholesterol testing
−− emergency decent device training for the construction −− free on-site psychology services and counselling
team working on the nitric acid plant stack
−− workshops to teach stretching techniques
−− firefighting training for operators at the Mines
−− hosting a Biggest Morning Tea event, featuring an
Rescue facility.
inspirational talk from a cancer survivor, to raise money
for the Cancer Council.
MAJOR HAZARD INITIATIVE
The Major Hazard Initiative, a global Orica project EMERGENCY RESPONSE
taking place across 475 sites, is designed to ensure that EXERCISES
everyone returns home safely at the end of each day.
The key purpose of the project is to increase employee Undertaking site-wide emergency response exercises
awareness of hazards in the workplace and to ensure ensures that we regularly practice and review our
there are effective controls in place to manage them. emergency response procedures. Throughout 2017 we
During 2017 we progressed this initiative at Kooragang conducted two such exercises, one of which was a joint
Island, identifying 16 major hazards and verifying 79 key exercise with Fire and Rescue NSW, NSW Environment
controls. Nearly every worker on site has been involved Protection Authority and other agencies. This allows
in this comprehensive process, which is scheduled to emergency services personnel to familiarise themselves
continue through 2018. with our site and products.PEOPLE In 2017 our employees
attended numerous
community events, such
as Surfest, to show
Our employees are critical to the ongoing success 7% NE support and connect with
–2
W
E CA stakeholders.
of our business. RI
ST
UA
LE
CQ
Orica Kooragang Island is a significant employer that maintains
–
MA
manufacturing capability and skills in the Hunter region. In 2017
42%
141
LAKE
we employed 141 people in a wide variety of roles. Around 90
per cent of our staff lived in the Newcastle, Lake Macquarie, Port
Stephens and Maitland local government areas.
Many of our employees are active members of the local
EMPLOYEES
M AI
community and last year participated in a variety of worthy
TLA
causes to raise money for charities including City2Surf, Ride W
HE VE
ND
to Conquer Cancer and the Newcastle to Dungog Bike Ride. R E T H E Y LI
CE
–
1%
A number of employees volunteered with local organisations
1
SS
DU
PO
NO
helping those in need, such as Orange Sky and Friends with
OT
N
RT
GOG
ST E
P HENS – 10 %
CK – 3
HER –
Dignity. The generosity of workers was also highlighted during
the ammonia plant turnaround, when employees and contractors
– 1%
%
passed the hat around to raise close to $5,000 for the family of a
6%
local man who died in a construction workplace accident.
Our graduate engineers belong to a regional sustainability
MALE
MALE – 88%
committee that both organises and takes part in a range of
activities for the benefit of the wider community. In 2017 the
graduates participated in Sleep out for Soul, raising more than
FEMALE
$2,500 for Newcastle’s Soul Café. They also twice visited Ronald FE
GRADU
AT
McDonald House at the John Hunter Hospital to cook for the
6
M
ES
A
E
resident families, and held a blood drive competition with other
L
–
12
%
Orica sites around the country.
Other achievements by our people include two employees
participating in the NSW Women in Mining Mentoring Program
129
and one employee climbing Mount Everest. In addition, on World
Environment Day 10 employees took part in a tree-planting
challenge, where they planted more than 430 trees within a two-
hour timeframe in the Kooragang wetlands.
RS
Safety is our priority. Always. We respect and value all.
O
T
Together we succeed. We act with integrity. We are CO N T R AC
committed to excellence.DID YOU KNOW?
The storage of AN at our site is carried
PRODUCTS
out in accordance with all AN storage
requirements in NSW including:
Orica KI supplies critical products to the mining,
−− The Australian Dangerous
infrastructure, agriculture, water supply, food, dairy
Goods Code, and
and medical sectors across the state.
−− Australian Standard AS 4326
– the storage and handling of
oxidising agents. AMMONIA AMMONIUM NITRATE
Ammonium nitrate is not an Kooragang Island’s ammonia plant uses natural gas Approximately 430,000 tonnes of industrial grade
explosive. However, it can become (methane) to produce up to 385,000 tonnes of ammonia ammonium nitrate (AN) are produced at the site per
explosive when combined with other (NH3) per annum. More than 90 per cent of this ammonia is annum. It is manufactured through the reaction of
specific substances. This is done used within the company for the manufacture of nitric acid ammonia and nitric acid. Most of this AN is used at
at the point of use, for example, and ammonium nitrate. Hunter Valley mine sites to make explosives. In fact, we
on a mine site. supply 85 per cent of the Hunter region’s mines. The AN
Approximately 23,000 tonnes of ammonia are sold across
Australia and Asia for other uses, including: is also used across New South Wales in the quarrying and
construction industries.
−− as an agricultural fertiliser, where it is applied as a liquid
directly into the soil for grain and cotton crops Ammonium nitrate product is supplied either as a solid
or in solution form. Ammonium nitrate solution (ANSOL),
−− as a refrigerant in commercial refrigeration systems a mixture of AN and water, is sent off site for use in
−− to provide longer lasting disinfection of drinking water the manufacture of emulsions, which are used to make
explosives at mines.
−− to assist in reducing nitrogen oxide (NOx) levels in air
emissions from power stations. Ammonium nitrate is also sold to the medical industry
for the manufacture of nitrous oxide (laughing gas), an
anaesthetic and pain relief gas.
NITRIC ACID
Three nitric acid plants operate at the site, converting CARBON DIOXIDE
ammonia into around 330,000 tonnes of nitric acid per
annum. Ninety-nine percent of the nitric acid is used You might be surprised to learn that our site supplies 50
on site in the manufacture of ammonium nitrate, while per cent of the New South Wales carbon dioxide market.
approximately 850 tonnes per annum are sold to the dairy Carbon dioxide is produced during the manufacture of
sector for use as a cleaning agent. ammonia and approximately 53,000 tonnes per annum
are sold for use in carbonated drinks and light beer, as a
medical gas during invasive surgery such as laparoscopy
and arthroscopy, and to manufacture dry ice, which is
predominantly used as a coolant in food transportation.ECONOMIC Orica Kooragang Island is a strategically and commercially critical business, which makes a significant contribution to the local economy. Market conditions improved over the last 12 months with the site producing more ammonium nitrate than ever before. Our operations continued to provide an important economic contribution to the Hunter Valley, which was somewhat higher than in 2016. This was mainly due to the increase in sales revenue and the activities associated with the ammonia plant turnaround. In 2017 we spent $46.4 million procuring goods and services from more than 260 local businesses, paid close to $45 million in wages to 271 employees and contractors, and invested around $76 million in capital and related works. In terms of added value, it is estimated that the site contributed an additional $77 million in economic activity and supported an additional 990 full-time equivalent jobs in the Hunter region. At a state level, Orica Kooragang Island created an additional $66 million in economic activity and supported an additional 842 jobs. Capital and related works provided a further $20 million stimulus in the Hunter region and $17 million in NSW. For every $1 million investment by Orica Kooragang Island, an indicative $170,000 in additional activity occurs and 15 additional jobs are supported in the broader economy. Economic information based on Orica’s financial year 1 October 2016 to 30 September 2017.
Telephone 1800 789 044 Email kooragang@orica.com orica.com/kooragang
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