Consultation Material - Orica ANE/Appendix 3_Consultation Material.pdfANE is an explosives precursor which is sensitised to become an explosive only at the point of use (i.e. the mine

Consultation Material

APPENDIX 3

Project News

Proposed Ammonium Nitrate Emulsion (ANE)Production Facility and Continued Operationsof Orica Mining Services Technology Centre

Orica Pty Limited (Orica) is seeking development consent from the NSW Government for the continuation of existing operations as well as the construction of a proposed ammonium nitrate emulsion (ANE) production facility at it’s Mining Services Technology Centre (Technology Centre), located at Richmond Vale, New South Wales (NSW). This Community Information Sheet provides a description of the project, an overview of the planning and approvals process, and more importantly, lets you know how you and other community members can become involved in the process.

Who is Orica ?

Orica Mining Services is the world’s leading provider of commercial blasting solutions to the mining, quarrying and construction industries. The Hunter is a significant part of the Orica Mining Services’ business with about 450 people employed in manufacturing, sales, marketing operations and research & development. Orica’s Mining Services Group has been operating at the existing Mining Services Technology Centre on George Booth Drive Richmond Vale since 1991. The Technology Centre consists of offices, research and other support facilities, and minor manufacturing facilities and employs approximately 200 people.

An important part of the project for Orica is talking to the local community, including residents, about the project and providing opportunities for community input to ensure that issues are identified, assessed and where appropriate incorporated into project planning.

Information on the project is available from the Orica website at (www.oricaminingservices.com ) and consultation with the local community will be undertaken through information sessions and further community information sheets.

The first community information session regarding the proposed project will be held on Tuesday 23 June 2009 at the Orica Technology Centre on George Booth Drive from 6.00pm for a 6.30pm start. The purpose of the community information session is to inform the local community about the project and provide an opportunity for questions and discussion. We encourage you to attend the community information session to learn more about the project and ask any questions you may have.

If you would like additional information please don’t hesitate to contact:

How Can you be Involved?

Environmental ConsultantsUmwelt

Michelle Kirkman

UmweltEnvironmental Consultants

02 49 505 322

Richard Sheehan

OricaEnvironment Advisor

02 49 089 300

Community Information Sheet June 2009

(www.oricaminingservices.com)

What is Proposed?

The existing operations at the Technology Centre which includes office amenities, research facilities and other support will remain unchanged. The proposed ANE production facility will have the ability to produce up to 250,000 tonnes of ANE per annum. ANE is an explosive precursor which is sensitised to become an explosive only at the point of use, i.e. on a mine site. It is proposed to distribute ANE produced at the Technology Centre via road transportation to other Orica operations for distribution or directly to customer sites in south eastern Australia.

The proposed ANE production facility will include:

chemical, fuel and product storage tanks;

an ANE manufacturing plant;

truck weighing, loading and unloading facilities;

stormwater/spill management structures;

The construction of the proposed ANE production facility is expected to take up to 12 months to complete and is estimated to have a capital value of $35 million.

What will be Assessed?

Umwelt (Australia) Pty Limited (Umwelt), an environmental consultancy, has been engaged by Orica to prepare the Environmental Assessment for the project. Comprehensive environmental assessments are currently being undertaken to assess the potential for the project to impact on:

Aboriginal and historic heritage;

Ecology;

Noise;

Traffic;

Water management;

Bushfire Risk;

Hazard and Risk;

Greenhouse gas and energy management; and

Air quality.

Other environmental issues to be covered in the Environmental Assessment include visual impacts, soils and erosion, and a social impact assessment to identify and assess issues of relevance to the community.

What Approvals will

be Required?

The project is defined as a major project under State Environmental Planning Policy (Major Projects) 2005. Therefore the project requires approval under Part 3A of the Environmental Planning and Assessment Act 1979 (EP&A Act). Under Part 3A Orica must submit a Project Application and Environmental Assessment for consideration by the Minister for Planning. The planning and assessment process is summarised in the flow chart on this page.

Planning and Assessment Process

Commencement of Environmental Studies

Lodgement of Project Application and Preliminary Environmental Assessment (PEA) to the Department of

Planning (DoP) under Part 3A of the EP & A Act

Government provision of specificEnvironmental Assessment (EA) Requirements

Umwelt complete theenvironmental studies and draft EA

Lodgement of draft EA andstatement of commitments with DoP

DoP and key agencies undertake a pre-exhibitionevaluation for adequacy of the EA

EA is placed on public exhibition for 30 days.DoP invites the public to make submissions

Public submissions are considered by Umwelt andOrica. A response to submissions is prepared and

provided to DoP

DoP considers the response to submissions. DoPcompletes assessment of EA and provides a

recommendation to the Minister

The Minister for Planning determines whetherapproval should be granted

indicates Government Review

we arehere

Indicative

Timing

March 09

May 09

July 09

August /

September

09

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June 09

October /

November

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utilities including hot water, cooling waterand compressed air systems, electricitydistribution cables and a transformer; and an office, control room, switch room, and qualitycontrol and mixing laboratories.

Proposed Ammonium Nitrate Emulsion (ANE)Production Facility and Continued Operationsof Orica Mining Services Technology Centre

Environmental Assessment: Summary

October 2009

Introduction

Orica Australia Pty Limited (Orica) is seeking development consent from the NSW Government for the construction of a proposed Ammonium Nitrate Emulsion (ANE) Production Facility (the Project) and continuation of existing operations at its Mining Services Technology Centre (Technology Centre), located at Richmond Vale New South Wales (NSW).

This information sheet follows on from: the Community Information Sheet distributed in June 2009; the Community Information Session held on 23 June 2009; and a subsequent letter sent to residents on 30 June 2009 outlining the issues raised at the Community Information Session. We have previously indicated that we would be back in contact with the community to provide the results of the Environmental Assessment (EA) studies. We are now drawing the EA studies to conclusion ready for lodgement with the NSW Department of Planning (DoP) and this information sheet provides a summary of the EA study findings.

Orica Mining Services Technology Centre Locality and Site Layout

1 Orica Mining Services Technology Centre

Orica Mining Services is the world's leading provider of commercial blasting solutions to the mining, quarrying and construction industries, and has been operating at the Technology Centre at Richmond Vale since 1991. The existing operations at the Technology Centre include offices, research and other support facilities and minor manufacturing facilities, employing approximately 200 people.

Orica proposes to construct and operate an ANE Production Facility at the Technology Centre site, to the south of the existing facilities. ANE is an explosives precursor which is sensitised to become an explosive only at the point of use (i.e. the mine or quarry site). A new access road will be constructed to the ANE Production Facility from Echidna Drive, Orica's current internal access road. The proposed ANE Production Facility will have the ability to produce up to 250,000 tonnes per annum of ANE, however production will increase incrementally, with the maximum production forecast to be reached in around 13 years’ time (i.e. approximately 2023). It is proposed to transport raw materials to the Technology Centre and ANE product from the Technology Centre by road. ANE Product will be transported to customers in the Hunter Valley and south eastern Australia. The proposed ANE Production Facility would include:

an ANE manufacturing plant;

chemical, fuel and product storage tanks; truck weighing, loading and unloading facilities;

stormwater and spill management structures;

utilities including hot water, cooling water, compressed air systems, electricity distribution infrastructure; and

an office, control room, switch room, and quality control and mixing laboratories.

The ANE Production Facility operating hours will increase in line with future demand for ANE product up to 24 hours per day, 7 days per week.

Carpark

Office andAmenities

Truck Loading area

ProcessWater Tanks

ANEManufacturing

Area

Fuel Storage

ANE Production Facility Conceptual Layout

A recap - who is Orica and what is proposed?

2Community Information Booklet


The Community views were......

As outlined in the previous Community Information Sheet and the Community Information Session, we are interested in the community's views on the Project. A summary of the key issues that have been raised so far by the community are contained below:

Obtaining the community’s views on the Project has been important in targeting the environmental assessment to the areas of concern for the community. In direct response to the issues raised by the community Orica has carried out some extra work and taken extra time to expand and complete some studies. A summary of the key EA study findings is contained in this information sheet.

traffic including increased traffic andparticularly heavy vehicles,

effects of clearing on biodiversity

road safety and traffic noise;

hours of operation;

bushfire;

pollution; both air and water

property values;

greenhouse gas emissions;

health concerns;

hazards - risk of explosion, includingfrom trucks


A detailed traffic assessment was undertaken to assess the potential impacts associated with the increase in traffic from the Project. It is proposed to operate the ANE Production Facility 24 hours per day, 7 days per week at peak production, including the transport of supplies to the facility and ANE from the facility.

The ANE Production Facility will result in an incremental increase in traffic as production from the facility increases up to the proposed maximum production rate of approximately 250,000 tonnes per annum in around 13 years’ time (approximately 2023). The existing traffic numbers and projected traffic from the Project are as follows:

Traffic

Orica Mining Services Technology Centre Entrance

Ammonium nitrate solution (ANS) will be transported from Kooragang Island via the New England Highway, John Renshaw Drive and George Booth Drive to the site.

When delivering ANE product to Hunter Valley clients, heavy vehicles will travel along George Booth Drive then John Renshaw Drive, through Kurri Kurri and then along Cessnock Road before joining the New England Highway at Maitland – all of which are State roads and approved B double routes. Once the F3 to Branxton (Hunter Expressway) is constructed (estimated to be open in 2013), it is proposed to use this road to transport ANE to the Hunter Valley.

The traffic assessment found that there are currently approximately 7100 vehicles per weekday using George Booth Drive, of which approximately 10% are heavy vehicles. The Project is expected to result in an increase in total weekday volumes on George Booth Drive of only 1.1% and an increase of less than 8% for heavy vehicles. This increase in traffic is well within the capacity for the road network. With the F3 to Branxton in operation, the Roads and Traffic Authority estimates that the traffic on George Booth Drive will reduce by approximately 92%, significantly reducing traffic on George Booth Drive even with the traffic from the Project.

Orica proposes to develop a Traffic Management Protocol which will include a Code of Conduct for heavy vehicle drivers to ensure a high standard of road traffic safety associated with the Project.

Heavy Vehicles

Light Vehicles

Total Number of Vehicles

Projected additionaltraffic at fullproduction

(approx. 2023) -ANE Production

Facility

Total MaximumTraffic (existingoperations andANE Production

Facility)

Projected additionaltraffic in first

year ofoperation - ANE

Production Facility

Existing trafficto / from the

Technology Centre

27 25 50 77

256 10 10 266

343283 35 60

Note: Heavy vehicles used to transport ammonium nitrate solution, ANE and other raw materials. Light vehicles include employees and visitors

5 Orica Mining Services Technology Centre 6Community Information Booklet

An assessment was undertaken to determine the potential impact of the construction, plant operation and traffic associated with the Project on environmental noise levels. The assessment included measurement of background noise levels at locations on George Booth Drive and Sheppeards Drive and specific monitoring of truck noise.

The assessment determined that;

Construction and operation of the proposed ANE Production Facility will generate minimal noise and will be well within the relevant noise goals at all private residences.

Noise

no potential for irritation effects from toxic products above the irritation risk criterion.

The proposed ANE Production Facility has been carefully designed to minimise the potential risks, incorporating recommendations from the PHA. Orica is able to effectively manage risks associated with the Project by:

minimising quantities of raw materials, dangerous goods and ANE product stored on site;

maintaining separation distances (i.e. adequate buffer) from site boundaries and existing facilities;

maintaining separation distances between any incompatible materials on site;

building engineering controls into the ANE Production Facility to minimise the potential for hazardous incidents; and

maintaining an Asset Protection Zone around the ANE Production Facility to protect against bushfire.

A transport risk assessment has been completed for the Project to;

identify the potential incident scenarios involving the transport of the dangerous goods ANS and ANE,

assess the adequacy of safeguard measures in managing potential risks.

assess the potential for explosion during transport, including an assessment of explosion as a result of decomposition of the material due to contamination or due to a vehicle fire.

assess the potential impacts of collision. A collision impact is unlikely to cause an explosion as ANS and ANE are insensitive to impact (i.e. do not explode on impact / shock).

A review of transport incidents within Orica and within the industry indicates escalation events (such as explosions) of ANE or ANS during transport are extremely uncommon. Orica has implemented a number of measures to ensure risks associated with the transport of ANS and ANE is minimised.

The transport risk assessment concludes that the safeguards Orica has in place are adequate for managing potential risks associated with the transport of ANS and ANE.

Predicted noise levels from traffic associated with the Project will be within the relevant criteria for all residences along George Booth Drive with the exception of one location where the existing noise environment is currently 1dB(A) above the noise criteria during daytime and at the criteria at night-time. It is predicted that there will be a minor increase in noise levels at this residence, i.e. 0.1 dB(A) during the day time and 0.3 dB(A) during the night time as a result of the Project.

With the operation of the Hunter Expressway expected in 2013 noise levels from traffic will be significantly reduced for all residences on George Booth Drive.

Despite the minimal noise predicted to be generated from the Project, Orica will minimise noise from construction and operation where practicable by;

Considering the noise generated by equipment during the detailed design phase of the project and during equipment purchasing.

Developing and implementing a Traffic Management Protocol, including a Code of Conduct for drivers that will include measures to minimise traffic noise such as the management of speed.

Scheduling potential noise generating activities to occur during daytime.

A Preliminary Hazard Analysis (PHA) has been completed for the Project in accordance with Department of Planning requirements. This PHA included;

the identification of potential hazards and hazardous events/incidents associated with the Project, including the use of chemicals classified as Dangerous Goods,

an assessment of the potential consequence of a hazardous event,

the likelihood of a hazardous event occurring and an assessment of overall risk, and

the influence of external factors such as bushfire on the potential for hazardous incidents to occur.

The PHA considered the potential for incidents that could result in hazardous events such as fire, explosion and toxic gas releases and found that there will be:

no explosive events with potential for fatality or injury to people or damage to property located offsite;

no potential for explosive events that would result in a hazard escalation between the proposed ANE Production Facility and the existing facilities;

no potential for fatality or injury as a result of dispersion of toxic products; and

Hazards

An assessment of potential air quality and odour impacts was completed for the Project. The results found that;

The process involved in the production of ANE is not a chemically reactive process, rather, it is a mixing process which does not generate any notable air emissions, and

There may be some very minor fumes emitted from tanks during refilling however these odour impacts will be very minor and localised to the plant and its immediate surrounds.

During construction for the proposed ANE Production Facility there may be some potential for minor dust emissions associated with the clearing and earthworks; however controls will be implemented to minimise these, such as use of a water cart during earthworks if required, minimising disturbed areas and stabilisation of these areas once work is completed. These controls will ensure that there will not be any impact beyond the Technology Centre boundaries.

Air and Odour

Noise Monitoring


Ecology

Tetratheca juncea

Open Forest Woodland

An ecology assessment was undertaken to assess the potential impacts of the proposed ANE Production Facility on threatened flora and fauna species, endangered populations, threatened ecological communities and their habitat. Ecological surveys recorded the following within the area to be disturbed by the proposed ANE Production Facility:

84 plant species including two threatened species, a low growing shrub Tetratheca juncea and the grevillea species Grevillea parviflora subsp. Parviflora;

The Lower Hunter Spotted Gum – Ironbark Forest threatened ecological community and the Coastal Plains Smooth-barked Apple Woodland vegetation community; and

32 bird species including one threatened species, the Scarlet Robin, 11 mammals species including the threatened Yellow-bellied Glider, 8 bat species including 2 threatened species of microbat (the little bentwing-bat and the large-footed myotis) and 2 amphibians species.

The Technology Centre site comprises 292 hectares of predominantly open forest vegetation. The proposed ANE Production Facility will result in the disturbance of only 8 hectares of this area. The ecological assessment has found that the Project will not have a significant impact on threatened species, populations, threatened ecological communities or their habitat due to the limited area of disturbance, the availability of other habitat within the Technology Centre site and surrounding area and the mitigation measures proposed.

The measures proposed to manage and reduce the potentialecological impacts include:

clear demarcation of the site to minimise clearing during construction;

where possible carrying out the clearing works in the months of March to August to minimise impacts on the breeding and nesting season of threatened fauna; and

marking of hollow bearing trees and staged clearing to minimise impacts on fauna.

establishment of Biodiversity Offset area on the Technology Centre site to offset the impact of the clearing associated with the construction of the ANE Production Facility

Access to the Technology Centre for the Rural Fire Service will continue to be provided for fire fighting personnel, and Orica will continue to liaise with the Rural Fire Service on its existing regime of fire reduction in the area.

With the implementation of the proposed mitigation measures the bushfire assessment found that the Project is unlikely to increase the bushfire hazard in the locality and is deemed to satisfy the NSW Rural Fire Service requirements for bushfire protection planning.

Water

The Technology Centre site is located in the catchment area of Surveyors Creek, a tributary of Wallis Creek and is traversed by a number of small drainage flowpaths that form part of the Surveyors Creek catchment. A tributary of Surveyors Creek is located within the boundary of the Technology Centre approximately 300 metres to the west of the proposed ANE Production Facility.

Any potential water quality impacts associated with the proposed ANE Production Facility will be managed to be negligible via the implementation of the site water management strategy. This strategy includes the use of roofing, bunding and plant segregation to minimise the generation of contaminated stormwater, recycling of water collected in plant areas and bunds for reuse in the production process, and treatment of water that could potentially contain oil or particulates prior to harvesting for reuse or release into downstream drainage lines.

The water requirements of the proposed ANE production facility will be sourced from water collected in the water management system and supplemented with potable water sourced externally from Hunter Water Corporation. It is expected that between 15 and 30% of the water needs for the site will be provided through the on site collection.


A bushfire assessment has been completed for the Project in accordance with the relevant NSW Rural Fire Service (RFS) guidelines Planning for Bushfire Protection (PBP). The Technology Centre site is located on land zoned as Bushfire Prone Land in accordance with local planning legislation. In accordance with the PBP an asset protection zone (APZ) is required between the hazard being the bushland and the development.

The bushfire assessment has determined that;

an APZ of a minimum of 20 metres wide be established around the northern, southern and eastern sides of the proposed ANE Production Facility, and a minimum 25 metres wide on the western side.

Orica proposes to establish an APZ of 30 metres on all sides of the Facility.

Orica also proposes to install a water tank for bushfire fighting purposes as recommended by the bushfire assessment.

In addition to the completion of the bushfire assessment, Orica has undertaken a Hazard Analysis Study to ensure that the risk of a bushfire event on the ANE Production Facility is minimised, and all flammable materials are stored appropriately in accordance with the relevant Australian Standards.

Waste

Waste materials produced by the Project will be managed inaccordance with the following waste management principles:

waste avoidance;

waste re-use;

waste recycling; and

waste removal and disposal.

The proposed ANE plant has been designed with an aim of minimising the generation of waste. All waste generated on site that can be reused or recycled will be managed accordingly.

All non-recyclable wastes would be assessed in accordance with the DECCW's 2008 Waste Classification Guidelines and would be removed from site and disposed of by an approved licensed contractor. It is unlikely that there will be any significant impacts associated with wastes generated from the Project.

Bushfire


An Aboriginal archaeological assessment was undertaken in conjunction with Aboriginal stakeholders to identify and assess the potential impacts on Aboriginal heritage sites. Surveys of the area to be impacted by the Project identified one Aboriginal heritage site which consisted of three artefacts in a highly disturbed area, and is considered to be of low significance. The study also identified that there were no historic European heritage sites located within the area to be impacted by the Project.

Orica and the Aboriginal stakeholders have agreed that representatives of the Aboriginal community will monitor the clearing of topsoil associated with the construction of the proposed ANE Production Facility to enable the identification of any further sites that may be present and to ensure that they are appropriately managed.

Aboriginal & Historical Heritage

A greenhouse gas and energy assessment has been completed for the Project in accordance with the relevant guidelines to assess emissions produced and energy consumed from;

the construction and operation of the ANE Production Facility and associated infrastructure;

the ANE production process; and

the transport of the ANE product from the Technology Centre to customers.

The assessment found that the project will result in total site annual greenhouse gas emissions of approximately 7,460 tCO2e. This increase in emissions will be offset by a reduction in emissions at Orica's Liddell facility where ANE is currently manufactured. The Liddell facility will cease manufacture of ANE once the proposed ANE Production Facility at the Technology Centre is operational. Hence the Project will result in a negligible increase in GHG emissions.

To minimise greenhouse gas emissions Orica will investigate options to maximise energy efficiency of the plant during the design phase, including selection of energy efficient equipment and process operating parameters.

Greenhouse

Stone artefact identified within the Technology Centre Project Area

We encourage you to contact us if you have any further questions about the Project or the results of the EA studies or if you would like further information. We are also happy to meet with you individually, if this would be of assistance, to further discuss the Project and EA findings and answer any questions you have. If you would like further information please contact:


Michelle Kirkman

UmweltEnvironmental Consultants02 49 505 322

Richard Sheehan

OricaEnvironmental Advisor02 49 089 300

Would you like more information?

Where to from here?

Commencement of Environmental Studies

Lodgement of Project Application and Preliminary Environmental Assessment (PEA) to the Department of

Planning (DoP) under Part 3A of the EP & A Act

Government provision of specificEnvironmental Assessment (EA) Requirements

Umwelt complete theenvironmental studies and draft EA

Lodgement of draft EA andstatement of commitments with DoP

DoP and key agencies undertake a pre-exhibitionevaluation for adequacy of the EA

EA is placed on public exhibition for 30 days.DoP invites the public to make submissions

Public submissions are considered by Umwelt andOrica. A response to submissions is prepared and provided to DoP

IndicativeTiming

March 09

May 09

October 09

October /November

09

October 09

November /December

09

DoP considers the response to submissions. DoP completes assessment of EA and provides a recommendation to the Minister

CO

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WE ARE HERE

IndicatesGovernment Review

The Minister for Planning determines whetherapproval should be granted

December 09

Now that the EA studies are drawing to conclusion the EA will be finalised and lodged with the NSW Department of Planning for assessment and determination. The EA will be placed on public exhibition by the Department at which time the community and other interested parties will have the opportunity to make submissions. The Department will consider the submissions in conjunction with those from the various government agencies and Cessnock City Council when assessing the Project, and the Minister for Planning will decide whether approval should be granted.

Where to from here?


Phone: 02 4939 5200Fax: 1300 303 798E-mail: [email protected]


Umwelt (Australia) Pty Limited2/20 The BoulevardePO Box 838Toronto NSW 2283

Ph. 02 4950 5322Fax 02 4950 5737

www.umwelt.com.au

Documents

Consultation Material - Orica ANE/Appendix 3_Consultation Material.pdfANE is an explosives precursor which is sensitised to become an explosive only at the point of use (i.e. the mine