COMMUNITY REPORT 2018 KOORAGANG ISLAND

Transcription

1 COMMUNITY REPORT 2018 KOORAGANG ISLAND

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3 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. Bertus De Villiers General Manager Orica Kooragang Island 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 the dedication of our employees and their commitment to continuous improvement. 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 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.

4 COMMUNITY ENGAGEMENT Orica Kooragang Island is committed to effective and targeted stakeholder engagement, which is essential to gaining the trust and support of our neighbours and the broader community. We work with the community to understand the needs, concerns and aspirations of individuals and organisations. In 2017 the site carried out a number of activities including: the production and distribution of a bi-monthly community newsletter delivered to residents in our neighbouring suburbs of Stockton, Carrington, Tighes Hill, Mayfield East, Fern Bay and Maryville regular Community Reference Group (CRG) meetings, a number of which featured independent guest speakers to talk about specific matters regular site tours for the general community as well as special interest groups employee attendance at community events to answer questions and speak to people about our operations emergency response briefings for industrial neighbours as well as nearby schools and aged care homes one-on-one conversations with community stakeholders to help us improve our community engagement activities. INVESTMENT Community investment and sponsorship activities are a central pillar of our engagement approach. We aim to make a lasting and positive contribution to the community by supporting local initiatives and events. Through our Community Investment Program we fund a range of projects that promote education and lifelong learning, improve and protect the environment, and build strong communities. In 2017 we provided around $131,000 worth of grants to 20 community groups. As well as providing grants through the Community Investment Program, we also invested around $141,000 sponsoring a range of other events, activities and organisations including: Surfest s Orica Team Challenge Harry s House Chuck Duck Breakfast Club Hunter District Cycling Club Newcastle Rotary Club Stockton Surf Life Saving Club Carrington Starlight Cinema Mentor Support Network Newcastle All Blacks Museum Express Newcastle Rowing Club local sporting clubs.

5 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.

6 In 2017 Surfest s Orica Team Challenge was held for the fifth year running at Stockton Beach. SPONSORSHIP SNAPSHOT Newcastle All Blacks We entered into a new three-year sponsorship agreement with the Newcastle All Blacks. The funding will help the local rugby league organisation participate in the annual NSW Koori Knockout, which is one of the largest Indigenous sporting and cultural events in the country. Mentor Support Network We continued our sponsorship of the Mentor Support Network, which provides scholarships to local students experiencing hardship so they can achieve their educational goals. The organisation also offers training, professional development and networking for its volunteer mentors. Chuck Duck For more than a decade we have sponsored the Chuck Duck charity. It runs a range of programs in numerous schools, aimed at helping all students but particularly those with special needs. Programs include breakfast clubs, therapy birds, bush tucker gardens and child safety education.

7 COMMUNITY INVESTMENT PROGRAM CASE STUDIES TAD A $10,000 grant supported the charity s local volunteers to produce unique and adaptable equipment solutions for people living with a disability. Stockton Senior Citizens Association With a grant of $8,800 the association installed three new split-system air conditioners in the Mitchell Street hall. Charles O Neill Hostel The hostel used a $6,500 grant to provide pet therapy for its residents, including an on-site animal petting zoo and chicken hatching program. Fern Bay Public School The school put a $6,000 grant towards its Literacy for Life project, aimed at encouraging the students to read. The funding enabled the school to purchase more than 300 new books. Curious Legends A grant of $10,000 assisted the local theatre company to deliver the Hidden Port project which involved community workshops, performance activities and a writing/ photography competition. Miss Porter s House A $9,000 grant was used to replace the damaged gate and picket fence at the historic Miss Porter s House in Newcastle West. The house is the only National Trust 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

8 2017 KEY EVENTS January The third and final flaring system, designed to capture ammonia emissions, became operational. The ammonia plant was temporarily shut down to undergo six-yearly planned maintenance. We replaced the old ammonia export line that connects the site to the K2 berth. The Orica Team Challenge and 3 Peas Markets, part of Newcastle s Surfest, took place at Stockton Beach. March February Orica s CEO, Alberto Calderon, visited the site to inspect activities being undertaken during the ammonia plant s maintenance shutdown. We commenced a new three-year sponsorship with the Newcastle All Blacks, a local Indigenous rugby league organisation. Stockton Landcare planted over 100 native seedlings, which were purchased with one of our community grants. May April A monitoring program commenced to evaluate the impact of nutrientrich groundwater on the north arm of the Hunter River. Miss Porter s House in Newcastle, the only National Trust property in the city, unveiled its new fence which was funded by our Community Investment Program. We sponsored the Harry s House car rally. We increased use of recycled water across the site, a move that will help save up to 2.9 billion litres of potable water per annum. The Orica Harry s House Charity Shield was held at Lynn Oval Stockton. Through the on-site medical centre, employees participated in a blood pressure and cholesterol testing program. Our HSC Chemistry Education program kicked off, with more than 200 students registered to attend. June To mark World Environment Day, employees participated in a tree-planting challenge. Our graduate engineers took part in Newcastle s annual Sleep out for Soul event. July A nitric acid and an ammonium nitrate plant were temporarily shut down to undergo planned maintenance. We hosted a breakfast to congratulate recent recipients of grants from our Community Investment Program. September August Fern Bay Public School launched its new library space, which was supported by a grant from our Community Investment Program. The annual joint emergency response exercise was held at the site with Fire and Rescue NSW and NSW EPA. We presented a cheque for more than $60,000 to the Newcastle Middle School. The funds were raised through a safety incentive scheme during the ammonia plant maintenance shut down. The Orica Mick Chapman Road Race was held at the Hunter Economic Zone near Kurri Kurri. The site set a new record for ammonium nitrate production. November October Works to upgrade the stack on the No 1 nitric acid plant commenced. Through our Community Investment Program, we supported Variety to provide scholarships to children who are disadvantaged or living with a disability. Our new general manager, Bertus De Villiers, started at the site. December We joined forces with the Medowie Lions Club to pack Christmas hampers for local families in need. Construction began on the new cooling tower in the nitrates area.

9 IN 2017 WE... ACHIEVED 430 days without a recordable injury HAD 189 workers participate in a stop and think program to identify hazards & controls INVESTED $76M in capital works PERFORMED 78 periodic health assessments CONDUCTED 96 occupational hygiene tests RAN 2 emergency response exercises CONDUCTED BUSINESS WITH 269 local suppliers PAID EMPLOYEES $24.2M SPENT $230M MILLION on goods and services OVERSEAS = $114.7M (50%) AUSTRALIA = $29.2M (13%) CONTRIBUTED AN ADDITIONAL $77M to the local economy PAID CONTRACTORS $20.6M HUNTER = $46.4M (20%) NSW = $39.7M (17%) AND SUPPORTED AN ADDITIONAL 990 FTE jobs SENT OUT AROUND 30,000 newsletters and 6,000 community reports INVESTED $272,000 in community sponsorships, grants and donations CONDUCTED 41 site tours TO HELP 42 beneficiaries HELD 4 community reference group meetings HOSTED 313 visitors

10 Orica employees marked World Environment Day by taking part in a tree-planting challenge at Kooragang. 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 improve our environmental performance and during the 2017 financial year we progressed and completed a range of projects. AMMONIA MANAGEMENT IMPROVEMENT We are investing more than $100 million to improve the way ammonia is managed at the site. In 2017 the third and final flaring system, designed to prevent ammonia emissions and their associated odour, became operational. In addition, the ammonia pipeline between the site and Kooragang Berth 2 was replaced. This will ensure the ongoing safe operation of the site s ammonia import and export process. REMEDIATION The site has lodged a development application with the NSW Department of Planning and Environment to construct a cap and containment arsenic remediation system. To support the application, an environmental impact assessment was completed last year and publicly exhibited. The remediation project will commence as soon as approval is granted. NUTRIENT MANAGEMENT A monitoring program to investigate soil and groundwater nutrient contamination, both on and off our Kooragang Island site, was completed in An ecological risk assessment will be submitted to the NSW Environment Protection Authority this year. PM2.5 PARTICLE CHARACTERISATION The site has been identified as a contributor to fine particulate matter (PM2.5), in the form of ammonium nitrate, at the Stockton air quality monitoring station. In 2017 activities required by a Pollution Reduction Program (PRP) were completed including: further analysis of samples from the air monitoring station identifying sources of ammonium nitrate at the site identifying technologies to reduce PM2.5 emissions. A report has been submitted to the NSW Environment Protection Authority. RECYCLED WATER PROJECT In 2014 we started using recycled water in the ammonia operations, a move that has been saving the Hunter region up to 2.3 billion litres of drinking water per annum. Last year we also switched the nitrates operations over to recycled water, taking potable water savings up to 2.9 billion litres per annum an increase of 25 per cent. The 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 Island has shifted from being the largest consumer of drinking water in the region to the 19th largest consumer. Using recycled water has significantly reduced the site s environmental footprint.

11 MAJOR PROJECTS AMMONIA PLANT TURNAROUND In February 2017 the ammonia plant was temporarily shut down to undergo planned maintenance. The multimilliondollar project, otherwise known as a turnaround, saw the completion of more than 900 tasks. Some of the key activities undertaken included: statutory inspections testing of safety instrumented systems inspection, overhaul and setting of relief valves catalyst replacements installation and upgrading of equipment general maintenance. Major turnarounds for the ammonia plant are conducted every six years and provide an opportunity to undertake important works that will ensure the plant can continue to operate safely and efficiently. NEW CATALYST Catalysts are used in the ammonia plant to initiate certain chemical reactions during the manufacturing process and over time need to be replaced to maintain their effectiveness. During the turnaround five different types of catalysts were replaced and activated. One of them was the high temperature shift (HTS) catalyst, which was involved in the 2011 hexavalent chromium incident. However, the HTS catalyst installed during the 2017 turnaround was specifically designed to contain only trace amounts of hexavalent chromium. This change, along with modifications to procedures and equipment, will ensure such an incident cannot happen again. SAFETY SCHEME During the turnaround workers participated in a safety incentive scheme, Play it Safe for the Kids. For every injuryfree day Orica, along with the contracting companies involved in the turnaround, donated money to the scheme. More than $60,000 was raised for the Newcastle Middle School, which plans to use the funds to purchase new equipment and install a sensory play area. The school creates quality educational pathways for students with significant disabilities. NUMBER CRUNCH 260K hours worked up to 450 extra people on site 929 tasks completed 1402 welds completed 188 relief values overhauled capital projects completed pressure vessel inspections Up to 450 extra workers were on site during the ammonia plant turnaround.

12 A joint emergency response exercise was held in August 2017 with NSW Fire and Rescue and other agencies. 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 At Orica Kooragang Island we have an uncompromising focus on hazard identification, risk assessment and risk management across all our work. Important safety achievements and activities for the year included: notching up 430 days without a recordable injury 189 employees and contractors participating in a Stop and Think safety awareness program operator refresher training for working in confined spaces emergency decent device training for the construction team working on the nitric acid plant stack firefighting training for operators at the Mines Rescue facility. MAJOR HAZARD INITIATIVE The Major Hazard Initiative, a global Orica project taking place across 475 sites, is designed to ensure that everyone returns home safely at the end of each day. The key purpose of the project is to increase employee awareness of hazards in the workplace and to ensure there are effective controls in place to manage them. During 2017 we progressed this initiative at Kooragang Island, identifying 16 major hazards and verifying 79 key controls. Nearly every worker on site has been involved in this comprehensive process, which is scheduled to continue through HEALTH Orica Kooragang Island has an on-site medical centre, which is staffed during business hours by an occupational health nurse and visited by a doctor for four hours a week. This ensures that we not only look after the safety of our employees but also their health and wellbeing. During 2017 the medical centre conducted periodic health assessments, skin checks, flu vaccinations and drug and alcohol testing. Other achievements included: a month-long program offering blood pressure and cholesterol testing free on-site psychology services and counselling workshops to teach stretching techniques hosting a Biggest Morning Tea event, featuring an inspirational talk from a cancer survivor, to raise money for the Cancer Council. EMERGENCY RESPONSE EXERCISES Undertaking site-wide emergency response exercises ensures that we regularly practice and review our emergency response procedures. Throughout 2017 we conducted two such exercises, one of which was a joint exercise with Fire and Rescue NSW, NSW Environment Protection Authority and other agencies. This allows emergency services personnel to familiarise themselves with our site and products.

13 PEOPLE Our employees are critical to the ongoing success of our business. Orica Kooragang Island is a significant employer that maintains manufacturing capability and skills in the Hunter region. In 2017 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 community and last year participated in a variety of worthy causes to raise money for charities including City2Surf, Ride to Conquer Cancer and the Newcastle to Dungog Bike Ride. A number of employees volunteered with local organisations helping those in need, such as Orange Sky and Friends with Dignity. The generosity of workers was also highlighted during the ammonia plant turnaround, when employees and contractors passed the hat around to raise close to $5,000 for the family of a local man who died in a construction workplace accident. 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 2017 the graduates participated in Sleep out for Soul, raising more than $2,500 for Newcastle s Soul Café. They also twice visited Ronald McDonald House at the John Hunter Hospital to cook for the resident families, and held a blood drive competition with other Orica sites around the country. Other achievements by our people include two employees participating in the NSW Women in Mining Mentoring Program 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 twohour timeframe in the Kooragang wetlands. Safety is our priority. Always. We respect and value all. Together we succeed. We act with integrity. We are committed to excellence. MALE 88% LAKE MACQUARIE 27% MAITLAND 11% FEMALE 12% 141 EMPLOYEES WHERE THEY LIVE PORT STEPHENS 10% MALE FEMALE NEWCASTLE 42% DUNGOG 1% OTHER 6% 129 CESSNOCK 3% GRADUATES 6 CONTRACTORS In 2017 our employees attended numerous community events, such as Surfest, to show support and connect with stakeholders.

14 DID YOU KNOW? The storage of AN at our site is carried out in accordance with all AN storage requirements in NSW including: The Australian Dangerous Goods Code, and Australian Standard AS 4326 the storage and handling of oxidising agents. Ammonium nitrate is not an explosive. However, it can become explosive when combined with other specific substances. This is done at the point of use, for example, on a mine site. PRODUCTS Orica KI supplies critical products to the mining, infrastructure, agriculture, water supply, food, dairy and medical sectors across the state. AMMONIA Kooragang Island s ammonia plant uses natural gas (methane) to produce up to 385,000 tonnes of ammonia (NH 3 ) per annum. More than 90 per cent of this ammonia is used within the company for the manufacture of nitric acid and ammonium nitrate. Approximately 23,000 tonnes of ammonia are sold across Australia and Asia for other uses, including: as an agricultural fertiliser, where it is applied as a liquid directly into the soil for grain and cotton crops as a refrigerant in commercial refrigeration systems to provide longer lasting disinfection of drinking water to assist in reducing nitrogen oxide (NOx) levels in air emissions from power stations. NITRIC ACID Three nitric acid plants operate at the site, converting ammonia into around 330,000 tonnes of nitric acid per annum. Ninety-nine percent of the nitric acid is used on site in the manufacture of ammonium nitrate, while approximately 850 tonnes per annum are sold to the dairy sector for use as a cleaning agent. AMMONIUM NITRATE Approximately 430,000 tonnes of industrial grade ammonium nitrate (AN) are produced at the site per annum. It is manufactured through the reaction of ammonia and nitric acid. Most of this AN is used at Hunter Valley mine sites to make explosives. In fact, we supply 85 per cent of the Hunter region s mines. The AN is also used across New South Wales in the quarrying and construction industries. Ammonium nitrate product is supplied either as a solid or in solution form. Ammonium nitrate solution (ANSOL), a mixture of AN and water, is sent off site for use in the manufacture of emulsions, which are used to make explosives at mines. Ammonium nitrate is also sold to the medical industry for the manufacture of nitrous oxide (laughing gas), an anaesthetic and pain relief gas. CARBON DIOXIDE You might be surprised to learn that our site supplies 50 per cent of the New South Wales carbon dioxide market. Carbon dioxide is produced during the manufacture of 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.

15 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 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.

16 Telephone orica.com/kooragang