KOORAGANG ISLAND
CEO’S MESSAGE
Achieving 50 years of site operation in manufacturing is not Alberto Calderon something that happens by chance. It requires the commitment, CEO discipline and diligence of all involved. I would like to congratulate Orica Limited 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. HISTORY OF KOORAGANG ISLAND
1951 1969 1972 The Hunter River The site began The No.1 ammonium Islands’ Reclamation producing fertiliser- nitrate plant was Scheme began, joining grade ammonium upgraded to enable several islands including nitrate (AN) for use in production of both 1989 Dempsey, Walsh and 1967 the agricultural industry. 1970 industrial-grade Moscheto to become Construction of plants The No.1 nitric acid plant Eastern Nitrogen Ltd AN for the mining CFL merged with Kooragang Island. commenced at the and No.1 ammonium joined forces with industry as well as neighbouring Greenleaf Kooragang Island site, nitrate plant commenced numerous other fertiliser-grade AN. Fertilisers to form Incitec then owned by an ICI- operation in February, companies to form Kooragang Island Works. led consortium Eastern while the ammonia plant Consolidated Fertilisers The No.2 nitric acid plant Nitrogen Ltd. became operational Ltd (CFL). The Kooragang and No.2 ammonium in November. Island site was renamed nitrate plant commenced CFL Newcastle Works operation. The No.1 but also operated ammonium nitrate under the Eastern plant began exclusively Nitrogen name. manufacturing industrial-grade ammonium nitrate. 2003 2011 2014 Orica took ownership After some The site started using of the Kooragang environmental incidents, recycled water in its Island site.. including a release of industrial processes. This hexavalent chromium switch is now saving the 2004 that impacted the 2012 Hunter region up to 2.9 2017 The No.3 nitric acid plant nearby Stockton The site began a $250 billion litres of drinking The installation of three commenced operation. community, the million improvement water a year. flaring systems, designed ammonia plant was program, the largest in to minimise the risk of The facility ceased shut down for around its history, focusing on ammonia emissions, was producing fertiliser-grade seven months. Orica was safety and environmental completed. The flares ammonium nitrate. later fined after being performance. were part of a broader convicted of offences project to overhaul Orica installed a new against the Protection the way ammonia is monitoring station in of the Environment managed at the site. Stockton, capable of Operations Act 1997. producing real-time data on air quality.
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.
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.
ONE OF THE FIRST VESSELS TO BE INSTALLED IN THE DID YOU KNOW? AMMONIA PLANT WAS THE ABSORBER, MADE HERE IN • By using recycled water in our • The original feedstock used to NEWCASTLE BY VIDOR industrial processes, we are saving make ammonia was naphtha, a ENGINEERING. the Hunter region up to 2.9 billion type of oil, but in 1982 the site litres of drinking water a year – switched to natural gas. Story that’s more than 1,100 Olympic- has it the Sydney to Newcastle sized swimming pools. gas pipeline was built using the ammonia plant’s gas contract as • There are approximately 8,000 guarantee for its viability. Today, pipes, more than 800 vessels the site uses between 10 to 15 per and around 600 relief valves cent of New South Wales’ overall across the site. gas consumption. • To undertake the ammonia tank’s • Supervisors used to get around first statutory inspection in 1974, the KI site on bicycles. the tank was slowly filled with water while workers utilised a • Our facility provides ammonium raft to inspect the interior walls. nitrate to approximately 85 per Since 1984, the tank’s integrity cent of the Hunter region’s mines. has been verified with acoustic • The largest vessel at the emissions’ testing. Kooragang Island facility is the • The original boilers were called ammonia tank, which has a George and Mildred. The new boiler, 12,000-tonne capacity. It was due for completion in 2019, is yet constructed on site using a special to be named. steel imported from England. • Orica KI makes a significant • Since 2014 more than 1,000 high contribution to the local economy school students have visited the through employment and site to learn about ammonia procurement of goods and services. manufacturing for the HSC In the past five years the site has Chemistry course. contributed an additional $464M • On 20 July 1969, a number of in economic activity and supported workers walked off the job because an additional 5,952 jobs in the there were no television sets on Hunter region. site to watch the world’s first • During the original construction moon landing. phase, two vessels being shipped • An operator earned around $69 a from Italy were lost at sea in a week in 1969. storm and had to be re-built. Pictures from left to right: • There have been 18 site managers - Lifting the absorber into place. since operations began. - Transporting the absorber to site. • We are committed to making a - The ammonia tank under construction. lasting and positive contribution - One of the first truckloads of AN to leave the site. - Hunter Region Botanic Gardens used an Orica to the community and in FY18 grant to purchase a new utility vehicle. invested $272,000 in sponsorships, - Fern Bay Public School’s recent library project was IN THE LAST DECADE WE grants and donations to help 45 funded by Orica. HAVE INVESTED MORE beneficiaries. - HSC Chemistry students visiting the site. - Orica is a proud supporter of the Stockton SLSC. THAN $1M IN COMMUNITY PROJECTS, BENEFITING HUNDREDS OF LOCAL ORGANISATIONS. Photo courtesy of Daniel Danuser OUR PRODUCTS
AMMONIA AMMONIUM NITRATE
When the Kooragang Island (KI) site first The production rate of fertiliser-grade started manufacturing ammonia, the ammonium nitrate (AN) in 1969, with one production rate was around 540 tonnes nitric acid plant and one AN plant, was per day or 197,000 tonnes per annum. around 150,000 tonnes per annum. Today, Today, after uprates in 1986 and 2011, the with three nitric acid plants and two AN ammonia plant can produce up to 1050 plants, the site can produce up to 430,000 tonnes per day or around 350,000 tonnes tonnes of industrial-grade AN per annum. per annum. More than 90 per cent of the Most of the AN is used at Hunter Valley ammonia produced at KI is used within mine sites to make explosives. Some AN the company for the manufacture of nitric is also sold to the medical industry for the acid and ammonium nitrate. The rest is manufacture of nitrous oxide, otherwise sold across Australia and Asia for other known as laughing gas. uses including as a fertiliser, a refrigerant, a disinfectant in drinking water and to reduce nitrogen oxide emissions from NITRIC ACID power stations. When nitric acid production commenced at the site with just one plant, the production CARBON DIOXIDE capacity was around 120,000 tonnes per annum. Now with three plants in operation,
Carbon dioxide (CO2) is produced during the site’s yearly production of nitric acid is the manufacture of ammonia and in 1976 around 330,000 tonnes. While 99 per cent the site began selling around 200 tonnes of the acid is used at KI in the manufacture of pure CO2 per annum. Now, the KI site of ammonium nitrate, a small amount supplies around 50 per cent of the NSW is sold to the dairy sector for use as a carbon dioxide market with approximately cleaning agent. 53,000 tonnes sold each year for use in carbonated drinks and light beer, as a medical gas, and to manufacture dry ice. SINCE 1969 OUR SITE HAS PRODUCED...
9.5 MILLION 1.3 MILLION 11.5 MILLION 9.8 MILLION TONNES OF TONNES OF TONNES OF TONNES OF AMMONIA PURE CARBON AMMONIUM NITRIC ACID with nearly 3 million tonnes being with 9.7 million tonnes being sold to the agricultural and other DIOXIDE NITRATE consumed at the Kooragang industries. That’s enough ammonia which could put the bubbles in around or nearly 360,000 truckloads. That Island site in the manufacture of to fertilise more than 14.5 million 6 billion cans of soft drink. amount of AN could move more ammonium nitrate. hectares of crops. than 14 billion cubic metres of overburden in mining operations. OUR PEOPLE
During the last 50 years it is estimated that BARBARA HUNTER MARK HYDE thousands of people have worked at the Barbara worked in the site’s laboratory as Having just notched up 43 years, Mark Kooragang Island site in a wide variety of roles an analytical chemist from 1974 to 2000. is Kooragang Island’s longest serving She was responsible for assuring the employee. He started as a fitter and turner including operators, maintenance technicians, quality control of materials and products, in 1976 and now works as a mechanical managers, administration assistants, various environmental monitoring tasks, maintenance technician looking after a and atmospheric gas testing for worker diverse range of equipment including accountants, chemists, safety specialists, safety. Barbara says she has many happy pumps, turbines, compressors, gearboxes engineers and more. And it appears that once memories of her 26 years at the site. and valves. Mark credits the people he a person starts working at the KI site, they “Many of my dearest friends, including works with as the reason for his longevity my best friend, were made during this at the site. “I like being part of a great generally like to stay on for a long time. As of time. We still catch up regularly. I also team, working with different people and January 2019, 40 current Orica Kooragang thoroughly enjoyed being part of the personalities in an environment where you social committee, helping to organise can have a bit of fun and laughs along the Island employees have served for more than Christmas parties and presents for way.” What he enjoys most however is 10 years, 28 have been here for more than 20 employees’ children.” training the young apprentices. “Watching the apprentices develop their trades to Barbara recalls some of her early years, 25 have notched up more than 30 years become confident and valuable employees challenges as having to climb extremely is very satisfying.” and one employee has worked at the site for tall vessels, as well as juggling young more than 40 years. children and family responsibilities while Mark says some of the biggest changes he working night shifts. “Another challenge has seen at the site over his four-decade when I first started was not having access career involve a greater focus on safety, to a female toilet in the lab. To solve the health and environment. “There have also problem, our then chief chemist had the been huge advances in technology such glass panel in the male toilet painted as thermal testing, vibration monitoring white. It wasn’t until quite some time later and the use of lasers. Even the humble that a women’s toilet, changeroom and computer has vastly improved the shower were provided.” way we work.” MARK DOYLE GARY CRITTENDEN ALLAN DIXON GABE COGGAN
Working at the Kooragang Island site has Gary also has a family history with A fitter and machinist by trade, Allan was Gabe started at Orica KI in 2012 as been something of a family affair for Mark Kooragang Island as his father Paul employed at BHP for around 20 years a graduate chemical engineer and because both of his parents were also worked as a pressure welder at the site before taking on the role of workshop very soon after secured a permanent employees. John Doyle was an instrument from around 1977 to 1993. Following supervisor at the KI site in 1968. “At BHP I position working on the ammonia electrician from 1968 to 1984, and Brenda in his dad’s footsteps, Gary started as a was working weekends and nights. It was management improvement program as Doyle was a switch board operator from welder in a casual capacity in 1984 and difficult because I had a young family.” a lead commissioning engineer. Now 1967 to 1970. Both enjoyed the variety of is now the welding supervisor for quality He says that after a lot of complaining she is a member of the technical team work and camaraderie with colleagues. control. His job involves writing work to his wife, she was the one who found as the nitrates senior process engineer, Mark started at KI in 1983 in the despatch instructions, undertaking day-to-day an advert for the KI position in the local supporting operations personnel to department and is now a production maintenance activities, and supporting the newspaper. “I had to do an interview identify and solve problems in the plants. planner for the nitrates team. He works planning and reliability functions. “Every and a three-hour written test before She also works on longer-term projects closely with the supply chain function to day the work is different, and I really enjoy getting the job.” aimed at improving efficiencies and safety. maximise nitric acid production. “One collaborating with colleagues on the many Allan was responsible for all the trades Gabe says it’s the people and the variety of the things I like most about my job is and varied projects.” on site including instrument and electrical that she likes the most about the job. that I get to interact with so many other Gary says a culture of continually technicians, boiler makers and iron “There’s always something going on departments on and off site. I also like striving for excellence can be both workers to name a few. All up there were and there is a good mix of team work, that the role is very challenging so there is challenging and rewarding and he is about 70 people in his team. He was also desk work and working on an operating never a dull day.” proud to have achieved some of the in charge of hiring up to three apprentices plant.” As for challenges, Gabe says the Between the three Doyles they have highest qualifications in the field of a year, some of whom still work at the site sheer volume of work can sometimes be notched up 55 years at KI and Mark says he welding. “There have been enormous today. After a recent visit to KI, Allan says tough. “This is especially the case when has no plans to leave any time soon. “I have improvements in safety and environmental he was surprised to see how much it had a plant has an unexpected trip or issue been offered a few jobs at other places but performance during my time here. Also, expanded. “Everything was bigger and that needs immediate attention. All other I think I’ll be here until retirement.” everything is computerised now which nearly every square inch was built on.” work gets dropped and I find my time means better efficiencies.” Fun fact: in his soon disappears.” 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. HOW WE CELEBRATED
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.
FAMILY OPEN DAY
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. e
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