COMMUNITY REPORT 2020 - KOORAGANG ISLAND - Orica
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COMMUNITY
KOORAGANG ISLAND
REPORT 2020
MANUFACTURING
CENTRE MANAGER’S
MESSAGE
Welcome to our 2020 community report. The purpose of this
report is to provide you with a summary of Orica Kooragang Island’s
activities and achievements over the last 12 months.
Demand for our products in the Hunter Valley has remained strong
and, for the fourth year running, our sales revenue increased. This
reflects our position as a trusted partner of choice for our customers
Paul Hastie as we continue to provide them with safe, secure and reliable supply.
Manufacturing
The site’s largest undertaking in 2019 was the turnaround for
Centre Manager,
Orica Kooragang Island the No.2 and No.3 nitric acid plants and the No.2 ammonium
nitrate plant. The multimillion-dollar planned maintenance project
involved the completion of more than 400 tasks including statutory
inspections, testing of safety instrumented systems, overhauling
relief valves and catalyst replacements. Major turnarounds for
the nitrates plants are conducted every five years and provide an
opportunity to carry out important works that will ensure the plants
can continue to operate safely and efficiently.
We maintained our focus on environmental and safety
performance, reaching a major milestone with the completion
of the arsenic remediation project. We also progressed our
ammonia management improvement program and major hazards
management program.
During 2019 we supported 42 Newcastle-based groups with around
$302,000 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.
Finally, last year we celebrated our 50th anniversary with more than
300 past and present employees attending a family open day at the
site. The event was a huge success as old friends were reunited, new
friends were made, and a story or two was told. It was a privilege to
mark such a memorable occasion with so many people who have
contributed to Orica’s success.
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 engagement approach.
gaining 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 and Program we fund a range of projects that
organisations. In 2019 our site carried out a number promote education and lifelong learning, improve
of activities including: and protect the environment, and build strong
communities. In 2019 we provided around
• the production and distribution of a quarterly $133,000 worth of grants to 16 community groups.
community newsletter delivered to residents
in our neighbouring suburbs of Stockton, As well as providing grants through the Community
Carrington, Tighes Hill, Mayfield East, Fern Bay Investment Program, we also provided around
and Maryville $169,000 in funding for a range of other events,
activities and organisations including:
• regular Community Reference Group meetings
• regular site tours for the general community as • Surfest’s Orica Team Challenge
well as special interest groups • Harry’s House
• employee attendance at community events to • Chuck Duck Breakfast Club
answer questions and speak to people about • Hunter District Cycling Club
our operations
• Newcastle Society of Artists
• emergency response briefings for industrial
neighbours as well as nearby schools and aged • Soul Café
care homes • Carrington Village Twilight Market
• one-on-one conversations with community • Mentor Support Network
stakeholders to help us improve our community • Newcastle All Blacks
engagement. • Museum Express
• Tea4TROG
• Biggest Ever Blokes’ Lunch
• Variety Children’s Charity
• local sporting clubs.
Pictured: The Orica-sponsored 2019 summer series of Soul Café’s Friday Chill was held from January to March at Newcastle’s
Pacific Park. More than 4,000 people attended the fun, family-friendly events which featured local musicians, food trucks and
lots of relaxed vibes.
SPONSORSHIP SNAPSHOT
Carrington Public School Art Expression Museum Express
In 2019, for the third year running, we sponsored Carrington Public School’s annual Art We continued our sponsorship of Museum Express, a local program that delivers high
Expression competition. The competition’s theme was Identity, and all funds raised from the quality and engaging science shows to schools and other audiences across the Hunter
event were donated to the Indigenous Literacy Foundation. and Central Coast regions. Since 2015, Orica has provided the program with more than
$250,000 in funding.
Biggest Ever Blokes’ Lunch John Hunter Children’s Hospital
We sponsored Newcastle’s Biggest Ever Blokes’ Lunch. More than 250 people attended the We sponsored the 10 Days of Christmas program at the John Hunter Children’s Hospital. The
inaugural event, which was aimed at raising awareness of prostate cancer and raising funds aim of the program was to provide kids in the hospital with special visits and surprises, as well
for specialist nurses in the Hunter region. Guest speakers included medical experts, creative as raise money for much-needed equipment.
artists and sporting identities.
COMMUNITY INVESTMENT PROGRAM CASE STUDIES
Got Your Back Sista Hunter Christian School Conservation Volunteers
The local charity used a $10,000 grant to provide weekly A $10,000 grant funded the Hunter Christian School’s The organisation used a $9,000 grant to increase organic
meditation and mindfulness classes for women rebuilding new outdoor learning and play space, made entirely from fruit and vegetable production at the Kooragang community
their lives after escaping domestic violence. reclaimed timber. garden, Ash Island, Hexham.
Hunter Multicultural Communities Stockton Tennis Club Royal Life Saving NSW
A $10,000 grant enabled Hunter Multicultural Communities The club used a $6,500 grant to help fund the replacement Thanks to a $4,800 grant, the organisation delivered first aid
to build a new information centre, upgrade garden planters of an old fence that divides the upper and lower courts. training to mums and carers in the Newcastle region.
and install beehives at its Waratah location.
Every year two rounds of funding are offered. The first round opens on 1
APPLYING FOR A GRANT WITH THE March and the second round opens on 1 September. Application forms and
COMMUNITY INVESTMENT PROGRAM supporting documentation are available on our website orica.com/kooragang
2019 KEY EVENTS
OCT
We supported
JUN one of the largest
Indigenous sporting
JAN A ship we use to
transport ammonia from AUG
events in Australia, the
Koori Knockout.
APR
We sponsored Soul our site to another Orica We conducted our
Café’s Friday Chill events facility in Queensland, The Orica-sponsored annual joint emergency
held at Newcastle’s the Wincanton, notched science outreach exercise with Fire
Pacific Park. The Hunter Multicultural up its 200th voyage. program Museum and Rescue NSW.
MAR Communities Express celebrated
We sponsored National Science Week
FEB NOV
organisation in Waratah
Newcastle’s inaugural at Bishop Tyrrell College.
unveiled its new
Two nitric acid plants Biggest Ever Blokes’
information centre, We sponsored the
and one ammonium Lunch, which was
The 7th Orica Team planters and beehives annual Harry’s House We completed a
nitrate plant were attended by more than
Challenge, part of which were funded by Charity Shield event at project to remediate
temporarily shut down 250 people and raised
Newcastle’s Surfest, took our grants program. Lynn Oval, Stockton. arsenic-contaminated
to undergo planned much-needed funds
place at Stockton Beach. soil and groundwater
maintenance. SafeWork NSW for specialist prostate
near the site’s north
We set up a stall
at the Sacred Tree The Hunter Christian
conducted its annual
major hazard facility
cancer nurses.
SEP western boundary.
JUL
Night Markets, which School revealed its verification visit to review We hosted a visit from
were held at Griffith new outdoor learning Fern Bay Public School the Orica Board’s
our critical controls and
Park, Stockton. and play space, revealed its new Safety Health and
safety systems.
made possible with a We hosted a breakfast learning space designed Environment Committee.
We celebrated turning Community Investment to help integrate
MAY
to congratulate recent
50 with a special family Program grant. recipients of grants STEM subjects into the The site’s new boiler
open day, which was from our Community curriculum. The project became operational.
attended by more We completed a project was funded with an
We sponsored the Investment Program.
to refurbish the stack on
DEC
than 300 past and KO Classic surfing Orica grant.
present employees. the No.1 nitric acid plant. The site held a series
competition held at Bar
of Integrity Forums for
Beach, which raised more
engineers, technicians We joined forces with the
than $20,000 for the
and planners to share Medowie Lions Club to
Calvary Mater Hospital.
information on a range pack Christmas hampers
of topics associated with for local families in need.
operating equipment
We sponsored the
and its metallurgy.
10 days of Christmas
We sponsored the fund-raising program
Hunter District Cycling at the John Hunter
Club’s Junior Tour. Children’s Hospital.
IN 2019 WE...
COMPLETED CONTRIBUTED INVESTED CONDUCTED CONDUCTED
3718 AN ADDITIONAL $ 302K 39 BUSINESS WITH
safety leadership
$ 67M in community site tours 502
interactions to the local economy sponsorships, local suppliers
grants and
donations HOSTED
PROVIDED
SUPPORTED AN 561 SPENT
120 ADDITIONAL TO HELP
visitors $238M
flu vaccinations
866 42 on goods and
services
beneficiaries RAN
FTE jobs
PERFORMED
SENT OUT 3 12% NSW
$28.7M
66 PAID AROUND site-wide
emergency 15% Hunter
periodic health EMPLOYEES
24K response exercises
$36.9M
assessments
$31.6M newsletters
20% Overseas
HAD HELD $50M
AND
55 PAID
6K 4
CONTRACTORS community
workers participate
in manual handling
training
$ 13.9M 50th anniversary
booklets
reference group
meetings
53% Australia
$132.2M
INVESTED
$ 39M
in capital works
ENVIRONMENT
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 better our Ammonia Management Improvement
environmental performance and during 2019 we progressed
Over the past eight years we have invested around $100
and completed a range of projects.
million to improve the way ammonia is managed at the site.
Remediation The program of works has included:
In 2019 we completed a project to remediate arsenic- • upgrades to ammonia storage vessels
contaminated soil and groundwater near the site’s north • upgrades to ammonia detection and isolation systems
western boundary, on time and on budget. The works
• installation of three flaring systems designed to prevent
involved the construction of a 12-metre deep, low-
ammonia emissions and their associated odour
permeability, below-ground wall to enclose the arsenic
contamination. A cap was then constructed above ground • replacement of the ammonia pipeline between the
to minimise rainwater entering the contained area. Ongoing site and Kooragang Berth 2 to ensure the ongoing
groundwater monitoring will be undertaken to ensure the safe operation of the site’s ammonia import and
system is operating effectively. export process.
During 2019 the final project in the Ammonia Management
The contamination is the result of an historical
Improvement Program was commenced. Works included
manufacturing process in which an arsenic-containing
the installation of new infrastructure at the 12,000-tonne
solution was used in the ammonia plant. The practice was
ammonia storage tank in preparation for a new pump and
ceased in 1994, before Orica took over ownership of the
associated piping.
site in 2003.
Emissions’ Reduction
A project to reduce PM2.5 ammonium nitrate emissions
from the site’s prill tower was significantly progressed during
2019, with the completion of a feasibility assessment for the
implementation of irrigated fibrebed scrubbing technology.
The process included:
• geotechnical and structural evaluation
• consultation with suppliers
• developing preliminary engineering drawings
• estimating the cost and timeframe for implementing
the technology.
A report outlining the findings of the feasibility assessment
has been submitted to the NSW Environment Protection
Authority.MAJOR PROJECTS
106,966 NITRATES
TURNAROUND
Nitrates Turnaround hours worked NUMBER CRUNCH
1,025
In March 2019 the No.2 nitric acid plant, No.2 ammonium
nitrate plant and No.3 nitric acid plant were temporarily shut
down to undergo planned maintenance. The multimillion-
dollar project, known as a turnaround, saw the completion permits issued
of more than 400 tasks and involved around 200 extra
workers on site. Some of the activities undertaken included:
• statutory inspections of pressure vessels 214
• integrity inspections of piping and tanks statutory inspections
• testing of safety instrumented systems completed
777
• inspection, overhaul and setting of relief valves
• catalyst replacements
• replacement of ageing equipment
audits completed
• machine overhauls and replacement.
220
Major turnarounds for the nitrates plants are conducted
every five years and provide an opportunity to undertake
important works that will ensure the plants can continue to
operate safely and efficiently. extra people on site
15
No.1 Nitric Acid Plant Stack
The refurbishment of the No.1 nitric acid plant’s stack was
completed in 2019. The works involved repairs to columns,
capital projects
the installation of new steel bracing and beams, and
painting. However, the longer-term plan for this asset is full completed
replacement and preliminary design work for a new stack
is underway.
Boiler
The site’s new boiler is now operational after construction
and commissioning was completed towards the end of
2019. A boiler is required to supply pressurised steam to
our operations. The site’s two original boilers were ageing,
subject to frequent shutdowns, required a high level of
maintenance and were less efficient than modern designs.
The new boiler will improve energy efficiency and reduce
gas consumption.HEALTH AND SAFETY
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 three 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 2019
• completing 3718 safety leadership interactions to ensure
the medical centre conducted periodic health assessments,
that risks were understood by all personnel and hazards
skin checks, flu vaccinations, and drug and alcohol testing.
were properly controlled
Other achievements included:
• first aid, work in confined spaces and confined space
rescue training for operators and maintainers • free on-site psychology services and counselling available
every fortnight
• manual handling training for 55 personnel
• drug and alcohol education sessions for all personnel.
• firefighting training for operators at the Mines
Rescue facility. Emergency Response Exercises
Major Hazards Management Undertaking site-wide emergency response exercises
ensures that we regularly practice and review our emergency
Major Hazards Management, a global Orica program
response procedures. Throughout 2019 we conducted three
taking place across 475 sites, is designed to ensure that
such exercises, one of which was a joint exercise with Fire
everyone returns home safely at the end of each day.
and Rescue NSW and other agencies. This allows emergency
The key purpose of the program is to increase employee
services personnel to familiarise themselves with our site
awareness of hazards in the workplace and to ensure there
and products.
are effective controls in place to manage them. During 2019
we significantly progressed this initiative at Kooragang An additional seven desktop emergency exercises were also
Island, verifying 207 key controls. Nearly every worker on site undertaken throughout the year.
has been involved in this comprehensive process, which is
scheduled to continue through 2020.PEOPLE
Our employees are critical to the ongoing
success of our business.
Orica Kooragang Island is a significant employer that retains
manufacturing capacity and skills in the Hunter region. In 2019
we employed 154 people in a wide variety of roles. Around 90
per cent of our staff live in the Newcastle, Lake Macquarie, Port
Stephens and Maitland local government areas.
Many of our employees are active members of the local
community and last year participated in a variety of events such
as City2Surf, Beanie for Brain Cancer and the Biggest Morning
Tea to help raise funds for charities. Many of our employees
also volunteer for non-profit organisations such as Engineers
Australia, Scouts and surf clubs, with one employee gaining
a nomination for Volunteer of the Year. In addition, we have
volunteer fire fighters and student mentors among the ranks.
Our graduate engineers belong to a regional sustainability
committee that both organises and takes part in a range of
activities for the benefit of the wider community. In 2019 the
graduates participated in Sleep out for Soul, raising more than
$3,500 for Newcastle’s Soul Café. They won the annual World
Environment Day tree-planting challenge, where a team of four
planted 160 trees in just two hours. The committee also visited
Ronald McDonald House twice to cook for the resident families
and sponsored the Lake Macquarie Running Festival, raising
$1,750 for the John Hunter Children’s Hospital.
The highlight of the 2019 year for our employees was
undoubtedly the 50th anniversary celebrations, which took place
over two events. The first was a dinner attended by more than
100 past and present employees, as well as community members
and elected officials. The second event was a family open day at
the site attended by more than 300 past and present employees. 154
employees female
13% 87%
male
89
contractors
3
graduates
Both at and outside of work, employees and contractors at Orica
Kooragang Island show their commitment to the company’s values. & where they live
Safety is our priority. Always. We respect and value all. 2% 3% 3% 9% 10% 33% 38%
Together we succeed. We act with integrity.
NEWCASTLE
MAITLAND
PORT
STEPHENS
LAKE
MACQUARIE
OTHER
DUNGOG
CESSNOCK
We are committed to excellence.PRODUCTS
Orica Kooragang Island supplies critical products to the mining, infrastructure, agriculture, water
supply, food, dairy and medical sectors across the state.
Ammonia Ammonium Nitrate
Kooragang Island’s ammonia plant uses natural gas Approximately 430,000 tonnes of industrial grade
(methane) to produce up to 385,000 tonnes of ammonia ammonium nitrate (AN) are produced at the site each year. It
each year. More than 90 per cent of this ammonia is used is manufactured through the reaction of ammonia and nitric
within the company for the manufacture of nitric acid and acid. Most of this AN is used at Hunter Valley mine sites to
ammonium nitrate. make explosives. In fact, we supply 85 per cent of the Hunter
region’s mines. The AN is also used across New South Wales
Approximately 23,000 tonnes of ammonia are sold across
in the quarrying and construction industries.
Australia and Asia for other uses, including:
Ammonium nitrate product is supplied either as a solid or
• as an agricultural fertiliser, where it is applied as a liquid
in solution form. Ammonium nitrate solution, a mixture of
directly into the soil for grain and cotton crops
AN and water, is sent off site for use in the manufacture of
• as a refrigerant in commercial refrigeration systems emulsions, which are used to make explosives at mines.
• to provide longer lasting disinfection of drinking water
Ammonium nitrate is also sold to the medical industry
• to assist in reducing nitrogen oxide (NOx) levels in air for the manufacture of nitrous oxide (laughing gas), an
emissions from power stations. anaesthetic and pain relief gas.
Nitric Acid Carbon Dioxide
Three nitric acid plants operate at the site, converting You might be surprised to learn that our site supplies 50 per
ammonia into around 330,000 tonnes of nitric acid each cent of the New South Wales carbon dioxide market. Each
year. Ninety-nine percent of the nitric acid is used on site in year approximately 53,000 tonnes of carbon dioxide, which
the manufacture of ammonium nitrate, while approximately is produced during the manufacture of ammonia, are sold
850 tonnes per annum are sold to the dairy sector for use as for use in carbonated drinks and light beer. It’s also used as
a cleaning agent. 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. Over the last five years market conditions in the coal sector have strengthened, and our sales revenue has steadily increased. Despite the challenges presented by rising energy costs, the Kooragang Island site remains reliable and sustainable, and future demand for our products appears strong. Our local spend continues to be substantial. In 2019 we spent $37 million procuring goods and services from more than 500 local businesses, paid more than $45 million in wages to 243 employees and contractors, and invested around $39 million in capital and related works. In terms of added value, it is estimated that the site contributed an additional $67 million in economic activity and supported an additional 866 full-time equivalent jobs in the Hunter region. At a state level, Orica Kooragang Island created an additional $53 million in economic activity and supported an additional 673 jobs. Capital and related works provided a further $7.6 million stimulus in the Hunter region and $5.9 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 2018 to 30 September 2019.
orica.com/kooragang 1800 789 044 kooragang@orica.com
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