KOORAGANG ISLAND

CEO’S MESSAGEAchieving 50 years of site operation in manufacturing is not something that happens by chance. It requires the commitment, discipline and diligence of all involved. I would like to congratulate all those who have been a part of the 50-year story of our Kooragang Island site. This is a truly fantastic achievement and one that should be celebrated.

From the time it commenced operations in February 1969, then owned by the ICI-led consortium Eastern Nitrogen Ltd, our Kooragang Island site has been an important one for Orica’s success. In its 50-year history the site has seen considerable growth and it can now produce some 350,000 tonnes of ammonia, 330,000 tonnes of nitric acid and 430,000 tonnes of industrial-grade ammonium nitrate per annum. In addition, the site supplies around 50 per cent of the New South Wales’ carbon dioxide market.

Of course, 50 years of continuous manufacturing has not been without its challenges. But through innovation, resilience and continuous improvement, the people of our Kooragang Island site have always risen to meet these challenges. In recent years in particular, the site has undergone significant changes to ensure that it continues to operate safely and efficiently now and into the future. The safety of our people, the community and the environment is Orica’s top priority.

The Kooragang Island site’s support of the local and broader Newcastle community is a real point of pride, not only for those at the site but for Orica as a whole. Countless community initiatives have not only benefitted from Kooragang Island’s corporate support, but also the support of our people who so generously donate their own time and money to make the community in which we operate a better place.

Our manufacturing sites are the lifeblood of Orica, and a site achieving 50 years of operation is something of which all Orica employees can be proud. The important role the Kooragang Island site has played in Orica’s history over these 50 years cannot be underestimated, and I look forward to the continued success of Orica Kooragang Island.

Alberto CalderonCEO

Orica Limited

1951The Hunter River Islands’ Reclamation Scheme began, joining several islands including Dempsey, Walsh and Moscheto to become Kooragang Island.

1967Construction of plants commenced at the Kooragang Island site, then owned by an ICI-led consortium Eastern Nitrogen Ltd.

1969The site began producing fertiliser-grade ammonium nitrate (AN) for use in the agricultural industry. The No.1 nitric acid plant and No.1 ammonium nitrate plant commenced operation in February, while the ammonia plant became operational in November.

1972The No.1 ammonium nitrate plant was upgraded to enable production of both industrial-grade AN for the mining industry as well as fertiliser-grade AN.

1970Eastern Nitrogen Ltd joined forces with numerous other companies to form Consolidated Fertilisers Ltd (CFL). The Kooragang Island site was renamed CFL Newcastle Works but also operated under the Eastern Nitrogen name.

HISTORY OF KOORAGANG ISLAND

1989CFL merged with neighbouring Greenleaf Fertilisers to form Incitec Kooragang Island Works.

The No.2 nitric acid plant and No.2 ammonium nitrate plant commenced operation. The No.1 ammonium nitrate plant began exclusively manufacturing industrial-grade ammonium nitrate.

2003Orica took ownership of the Kooragang Island site..

2014The site started using recycled water in its industrial processes. This switch is now saving the Hunter region up to 2.9 billion litres of drinking water a year.

2004The No.3 nitric acid plant commenced operation.

The facility ceased producing fertiliser-grade ammonium nitrate.

2012The site began a $250 million improvement program, the largest in its history, focusing on safety and environmental performance.

Orica installed a new monitoring station in Stockton, capable of producing real-time data on air quality.

2011After some environmental incidents, including a release of hexavalent chromium that impacted the nearby Stockton community, the ammonia plant was shut down for around seven months. Orica was later fined after being convicted of offences against the Protection of the Environment Operations Act 1997.

2017The installation of three flaring systems, designed to minimise the risk of ammonia emissions, was completed. The flares were part of a broader project to overhaul the way ammonia is managed at the site.

NOW• Men still dominate the workforce but

female representation has increased, especially in engineering roles.

• All operators work with a state-of-the-art, electronic Distributed Control System and can access over 100 screens of information at the touch of a button.

• Safety is a priority and everyone must wear personal protective equipment when out on site.

THEN• Men dominated the workforce,

especially technical roles.

• Operators used a large mimic panel of switches and dials to regulate the ammonia manufacturing process.

• Personal protective equipment appeared to be optional for some.

DID YOU KNOW?ONE OF THE FIRST VESSELS TO BE INSTALLED IN THE AMMONIA PLANT WAS THE ABSORBER, MADE HERE IN NEWCASTLE BY VIDOR ENGINEERING.

• By using recycled water in our industrial processes, we are saving the Hunter region up to 2.9 billion litres of drinking water a year – that’s more than 1,100 Olympic-sized swimming pools.

• There are approximately 8,000 pipes, more than 800 vessels and around 600 relief valves across the site.

• To undertake the ammonia tank’s first statutory inspection in 1974, the tank was slowly filled with water while workers utilised a raft to inspect the interior walls. Since 1984, the tank’s integrity has been verified with acoustic emissions’ testing.

• The original boilers were called George and Mildred. The new boiler, due for completion in 2019, is yet to be named.

• The original feedstock used to make ammonia was naphtha, a type of oil, but in 1982 the site switched to natural gas. Story has it the Sydney to Newcastle gas pipeline was built using the ammonia plant’s gas contract as guarantee for its viability. Today, the site uses between 10 to 15 per cent of New South Wales’ overall gas consumption.

• Supervisors used to get around the KI site on bicycles.

• Our facility provides ammonium nitrate to approximately 85 per cent of the Hunter region’s mines.

• The largest vessel at the Kooragang Island facility is the ammonia tank, which has a 12,000-tonne capacity. It was constructed on site using a special steel imported from England.

IN THE LAST DECADE WE HAVE INVESTED MORE THAN $1M IN COMMUNITY PROJECTS, BENEFITING HUNDREDS OF LOCAL ORGANISATIONS. Photo courtesy of Daniel Danuser

• Orica KI makes a significant contribution to the local economy through employment and procurement of goods and services. In the past five years the site has contributed an additional $464M in economic activity and supported an additional 5,952 jobs in the Hunter region.

• During the original construction phase, two vessels being shipped from Italy were lost at sea in a storm and had to be re-built.

• There have been 18 site managers since operations began.

• We are committed to making a lasting and positive contribution to the community and in FY18 invested $272,000 in sponsorships, grants and donations to help 45 beneficiaries.

• Since 2014 more than 1,000 high school students have visited the site to learn about ammonia manufacturing for the HSC Chemistry course.

• On 20 July 1969, a number of workers walked off the job because there were no television sets on site to watch the world’s first moon landing.

• An operator earned around $69 a week in 1969.Pictures from left to right:

- Lifting the absorber into place.

- Transporting the absorber to site.

- The ammonia tank under construction.

- One of the first truckloads of AN to leave the site.

- Hunter Region Botanic Gardens used an Orica grant to purchase a new utility vehicle.

- Fern Bay Public School’s recent library project was funded by Orica.

- HSC Chemistry students visiting the site.

- Orica is a proud supporter of the Stockton SLSC.

OUR PRODUCTS

AMMONIA

When the Kooragang Island (KI) site first started manufacturing ammonia, the production rate was around 540 tonnes per day or 197,000 tonnes per annum. Today, after uprates in 1986 and 2011, the ammonia plant can produce up to 1050 tonnes per day or around 350,000 tonnes per annum. More than 90 per cent of the ammonia produced at KI is used within the company for the manufacture of nitric acid and ammonium nitrate. The rest is sold across Australia and Asia for other uses including as a fertiliser, a refrigerant, a disinfectant in drinking water and to reduce nitrogen oxide emissions from power stations.

CARBON DIOXIDE

Carbon dioxide (CO2) is produced during the manufacture of ammonia and in 1976 the site began selling around 200 tonnes of pure CO2 per annum. Now, the KI site supplies around 50 per cent of the NSW carbon dioxide market with approximately 53,000 tonnes sold each year for use in carbonated drinks and light beer, as a medical gas, and to manufacture dry ice.

AMMONIUM NITRATE

The production rate of fertiliser-grade ammonium nitrate (AN) in 1969, with one nitric acid plant and one AN plant, was around 150,000 tonnes per annum. Today, with three nitric acid plants and two AN plants, the site can produce up to 430,000 tonnes of industrial-grade AN per annum. Most of the AN is used at Hunter Valley mine sites to make explosives. Some AN is also sold to the medical industry for the manufacture of nitrous oxide, otherwise known as laughing gas.

NITRIC ACID

When nitric acid production commenced at the site with just one plant, the production capacity was around 120,000 tonnes per annum. Now with three plants in operation, the site’s yearly production of nitric acid is around 330,000 tonnes. While 99 per cent of the acid is used at KI in the manufacture of ammonium nitrate, a small amount is sold to the dairy sector for use as a cleaning agent.

SINCE 1969 OUR SITE HAS PRODUCED...

9.5 MILLION TONNES OF AMMONIAwith nearly 3 million tonnes being sold to the agricultural and other industries. That’s enough ammonia to fertilise more than 14.5 million hectares of crops.

11.5 MILLION TONNES OF AMMONIUM NITRATEor nearly 360,000 truckloads. That amount of AN could move more than 14 billion cubic metres of overburden in mining operations.

1.3 MILLION TONNES OF PURE CARBON DIOXIDEwhich could put the bubbles in around 6 billion cans of soft drink.

9.8 MILLION TONNES OF NITRIC ACIDwith 9.7 million tonnes being consumed at the Kooragang Island site in the manufacture of ammonium nitrate.

During the last 50 years it is estimated that thousands of people have worked at the Kooragang Island site in a wide variety of roles including operators, maintenance technicians, managers, administration assistants, accountants, chemists, safety specialists, engineers and more. And it appears that once a person starts working at the KI site, they generally like to stay on for a long time. As of January 2019, 40 current Orica Kooragang Island employees have served for more than 10 years, 28 have been here for more than 20 years, 25 have notched up more than 30 years and one employee has worked at the site for more than 40 years.

BARBARA HUNTER

Barbara worked in the site’s laboratory as an analytical chemist from 1974 to 2000. She was responsible for assuring the quality control of materials and products, various environmental monitoring tasks, and atmospheric gas testing for worker safety. Barbara says she has many happy memories of her 26 years at the site. “Many of my dearest friends, including my best friend, were made during this time. We still catch up regularly. I also thoroughly enjoyed being part of the social committee, helping to organise Christmas parties and presents for employees’ children.”

Barbara recalls some of her early challenges as having to climb extremely tall vessels, as well as juggling young children and family responsibilities while working night shifts. “Another challenge when I first started was not having access to a female toilet in the lab. To solve the problem, our then chief chemist had the glass panel in the male toilet painted white. It wasn’t until quite some time later that a women’s toilet, changeroom and shower were provided.”

MARK HYDE

Having just notched up 43 years, Mark is Kooragang Island’s longest serving employee. He started as a fitter and turner in 1976 and now works as a mechanical maintenance technician looking after a diverse range of equipment including pumps, turbines, compressors, gearboxes and valves. Mark credits the people he works with as the reason for his longevity at the site. “I like being part of a great team, working with different people and personalities in an environment where you can have a bit of fun and laughs along the way.” What he enjoys most however is training the young apprentices. “Watching the apprentices develop their trades to become confident and valuable employees is very satisfying.”

Mark says some of the biggest changes he has seen at the site over his four-decade career involve a greater focus on safety, health and environment. “There have also been huge advances in technology such as thermal testing, vibration monitoring and the use of lasers. Even the humble computer has vastly improved the way we work.”

OUR PEOPLE

MARK DOYLE

Working at the Kooragang Island site has been something of a family affair for Mark because both of his parents were also employees. John Doyle was an instrument electrician from 1968 to 1984, and Brenda Doyle was a switch board operator from 1967 to 1970. Both enjoyed the variety of work and camaraderie with colleagues. Mark started at KI in 1983 in the despatch department and is now a production planner for the nitrates team. He works closely with the supply chain function to maximise nitric acid production. “One of the things I like most about my job is that I get to interact with so many other departments on and off site. I also like that the role is very challenging so there is never a dull day.”

Between the three Doyles they have notched up 55 years at KI and Mark says he has no plans to leave any time soon. “I have been offered a few jobs at other places but I think I’ll be here until retirement.”

GARY CRITTENDEN

Gary also has a family history with Kooragang Island as his father Paul worked as a pressure welder at the site from around 1977 to 1993. Following in his dad’s footsteps, Gary started as a welder in a casual capacity in 1984 and is now the welding supervisor for quality control. His job involves writing work instructions, undertaking day-to-day maintenance activities, and supporting the planning and reliability functions. “Every day the work is different, and I really enjoy collaborating with colleagues on the many and varied projects.”

Gary says a culture of continually striving for excellence can be both challenging and rewarding and he is proud to have achieved some of the highest qualifications in the field of welding. “There have been enormous improvements in safety and environmental performance during my time here. Also, everything is computerised now which means better efficiencies.” Fun fact: in his spare time, Gary’s father Paul operated his own fishing trawlers and kept up a steady supply of Hunter River prawns to KI employees during his tenure.

ALLAN DIXON

A fitter and machinist by trade, Allan was employed at BHP for around 20 years before taking on the role of workshop supervisor at the KI site in 1968. “At BHP I was working weekends and nights. It was difficult because I had a young family.” He says that after a lot of complaining to his wife, she was the one who found an advert for the KI position in the local newspaper. “I had to do an interview and a three-hour written test before getting the job.”

Allan was responsible for all the trades on site including instrument and electrical technicians, boiler makers and iron workers to name a few. All up there were about 70 people in his team. He was also in charge of hiring up to three apprentices a year, some of whom still work at the site today. After a recent visit to KI, Allan says he was surprised to see how much it had expanded. “Everything was bigger and nearly every square inch was built on.”

GABE COGGAN

Gabe started at Orica KI in 2012 as a graduate chemical engineer and very soon after secured a permanent position working on the ammonia management improvement program as a lead commissioning engineer. Now she is a member of the technical team as the nitrates senior process engineer, supporting operations personnel to identify and solve problems in the plants. She also works on longer-term projects aimed at improving efficiencies and safety.

Gabe says it’s the people and the variety that she likes the most about the job. “There’s always something going on and there is a good mix of team work, desk work and working on an operating plant.” As for challenges, Gabe says the sheer volume of work can sometimes be tough. “This is especially the case when a plant has an unexpected trip or issue that needs immediate attention. All other work gets dropped and I find my time soon disappears.”

Two events were held in February 2019 to mark the Kooragang Island (KI) site’s 50th anniversary.

The first was a dinner at local restaurant Noah’s on the Beach which was attended by 110 past and present KI employees, as well as Orica executives and community stakeholders.

HOW WE CELEBRATED

We also held an open day at the KI site. It was attended by more than 300 past and present employees, and their families.

The event featured visual displays, site tours, kids’ activities and a very special cake.

FAMILY OPEN DAY

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orica.com/kooragang Phone: 1800 789 044 Email: kooragang@orica.com