Proposed Ammonium Nitrate Emulsion Production Facility and Continued Operation of Orica Mining Services Technology Centre, Richmond Vale, NSW

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1 ENVIRONMENTAL ASSESSMENT Proposed Ammonium Nitrate Emulsion Production Facility and Continued Operation of Orica Mining Services Technology Centre, Richmond Vale, NSW DECEMBER 2009 Environmental Consultants

2 Proposed Ammonium Nitrate Emulsion (ANE) Production Facility, and Continued Operation of Orica Mining Services Technology Centre, Richmond Vale, NSW Prepared by on behalf of Orica Australia Pty Limited Project Director: Project Manager: Michelle Kirkman Emma Lodge Report No. 2586/R02/Final Date: December /20 The Boulevarde PO Box 838 Toronto NSW 2283 Ph: Fax: Website:

3 Executive Summary Executive Summary Background Orica Australia Pty Limited (Orica) is seeking a development consent for the continuation of existing operations and the construction and operation of a proposed Ammonium Nitrate Emulsion (ANE) Production Facility at their existing Mining Services Technology Centre (Technology Centre), located at Richmond Vale, New South Wales (NSW). Orica s Technology Centre is situated on the southern side of George Booth Drive in Richmond Vale NSW; approximately 22 kilometres west of Newcastle The closest townships to the Technology Centre are Kurri Kurri, approximately five kilometres to the north-west and Seahampton, approximately four kilometres to the south-east of the Technology Centre. The Technology Centre currently operates under three development consents granted by Cessnock City Council for the existing operations which include offices, explosives research and testing facilities, an ANE Quarry Services storage depot, a manufacturing facility for specialised packaged explosives, explosive storage magazines and other associated activities. The proposed ANE Production Facility will involve the construction of new infrastructure within the existing Technology Centre allowing for the production of up to 250,000 tonnes per annum of ANE, an explosive precursor that is sensitised at the end point of use (i.e. the mine or quarry site) to become an explosive. The Project, as outlined below, is identified as a Part 3A Project as defined by the State Environmental Planning Policy (SEPP) Major Projects 2005, and requires the approval of the NSW Minister for Planning under Part 3A of the Environmental Planning and Assessment Act 1979 (EP&A Act). This (EA) has been prepared by Umwelt (Australia) Pty Limited (Umwelt) on behalf of Orica to assess the potential environmental and social impacts of the Project. The Project Orica is seeking to obtain one new project approval that includes: all existing operations undertaken at the Technology Centre; and the proposed ANE Production Facility and associated access roads and service infrastructure. The existing operations which include office amenities, research manufacturing facilities, a quarry services depot, and other support facilities at the Technology Centre will remain unchanged. The proposed ANE Production Facility will have the ability to produce up to 250,000 tonnes of ANE per annum. 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 and predominantly in the Hunter Valley. Raw materials required for the production of ANE include ammonium nitrate solution (ANS), fuel blend ingredients such as canola and diesel oil, thiourea, urea, acetic acid, caustic soda calcium nitrate, prilled solid ammonium nitrate, and water. All raw materials will be delivered to the Technology Centre via road transportation from Orica s Kooragang Island operations and various other locations. 2586/R02/Final December

4 Executive Summary The proposed ANE Production Facility will include: chemical, fuel, water and product storage tanks; an ANE manufacturing plant; truck weighing, loading and unloading facilities; utilities including hot water, cooling water, chilled water and compressed air systems, electricity distribution cables and transformer; stormwater and spill management controls; and an office, control room, switch room and quality control laboratory. 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. To meet the expected future demand for ANE, and to achieve the required full production rate with the lowest off-site risk profile, it is proposed to operate the ANE Production Facility on a 24 hours, 7 days per week basis. The proposed ANE Production Facility is expected to require 10 employees on 3 shifts operating up to 24 hours during peak operation. It is expected that up to 50 contractors will be involved with the construction of the proposed ANE Production Facility over a 12 month period. Consultation Consultation with relevant stakeholders has been undertaken throughout all stages of the environmental assessment process for the Project with the aim of informing the stakeholders about the Project and identifying any issues of concern or interest to be investigated and addressed in the EA. Stakeholders involved in this consultation process included the surrounding community, local government, State government authorities, utility service providers and Aboriginal groups. The consultation program consisted of two key phases, with the initial phase aimed at informing stakeholders and the local community of the Project and seeking feedback as to stakeholder and community issues surrounding the Project with the aim of informing the EA. A second phase of consultation was carried out following completion of the EA studies and aimed at informing the local community in more detail of the Project, and providing the outcomes of the EA studies. The consultation effort to date has involved the distribution of two Community Information Sheets with associated letters to community members, a Community Information Session held at the Technology Centre site, and meetings with community members and government agencies. The key issues raised by the community and other stakeholders during the consultation process for the Project have been considered in the EA. 2586/R02/Final December

5 Executive Summary Key Environmental and Community Issues This EA has comprehensively addressed the potential environmental and community impacts associated with the Project. A range of management and mitigation measures are proposed to minimise the environmental and social impacts of the Project. An overview of the outcomes of the detailed assessments of the key issues is provided below. Traffic 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. Existing operations at the Technology Centre involve in the order of 283 vehicles per day accessing the site, including approximately 27 heavy vehicles. The proposed ANE Production Facility is expected to 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 project is expected to involve a further 25 heavy vehicles (B Doubles and single tankers) and 10 light vehicles (employees and visitors) per weekday on weekdays accessing the site when the facility starts operation and approximately 50 heavy vehicles accessing the site when the facility is at full production. The main raw material involved in ANE production, 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 the 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 link to Branxton is constructed (estimated to be open in 2013), Orica will likely use this road, reducing the need to transport ANE through Kurri Kurri. The traffic assessment found that there are approximately 7100 vehicles per weekday currently using George Booth Drive with heavy vehicles comprising less than 10 per cent. John Renshaw Drive carries approximately 16,241 vehicles per weekday (west of George Booth Drive). Prior to the opening of the F3 link to Branxton (i.e. prior to 2013), the Project is expected to result in an increase in total weekday volumes on George Booth Drive of only 1.1 per cent and an increase of per cent for heavy vehicles. This increase in traffic is well within the capacity for the road network. With the F3 link to Branxton in operation, traffic on George Booth Drive will be substantially reduced by approximately 92 per cent, further improving traffic conditions on George Booth Drive even with the traffic from the Project. Orica will implement a Traffic Management Protocol and Driver Code of Conduct with the Transport Company that may include measures such as: restrictions on the use of exhaust brakes in both directions on the section of George Booth Drive between John Renshaw Drive and the entrance road to Orica (i.e. the intersection between Echidna Drive and George Booth Drive); and maintaining a record of vehicles used to transport product to enable monitoring of adherence to the Traffic Management Protocol. 2586/R02/Final December

6 Executive Summary Noise The noise assessment completed for the Project includes an assessment of potential noise impacts associated with the construction and operation of the Proposed ANE Production Facility and existing operations as well as potential noise impacts associated with traffic. The assessment included background monitoring at locations on George Booth Drive and Sheppeard Drive. Further specific monitoring was also conducted on the heavy vehicles proposed to be used for transporting ANE product off site. Noise goals for the Project were subsequently established based on the background monitoring, NSW Industrial Noise Policy, and the Environmental Criteria for Road Traffic Noise. Modelling of predicted noise impacts indicates that the 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. The noise assessment has found that the 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 residence. Traffic noise at this residence is already above the criteria during the day, and at the criteria at night and the increase in road traffic associated with the Project is expected to only increase the road traffic noise level by 0.1 decibels during the day time and 0.3 decibels during the night time. With the operation of the F3 link to Branxton (in approximately 2013) noise levels from traffic are expected be significantly reduced for all residences on George Booth Drive. Despite the minimal noise predicted to be generated from the Project, noise from construction and operation will be minimised where practicable including giving consideration to the noise generated by equipment during the detailed design phase of the project and during equipment purchasing. During construction of the proposed ANE Production Facility, particularly noisy activities that are likely to generate high noise levels will be undertaken where possible, during the day. During the operation of the proposed ANE Production Facility a Traffic Management Protocol, including a Code of Conduct for drivers will be developed that will include measures to minimise traffic noise such as the management of engine braking. Hazards A Preliminary Hazard Analysis (PHA) has been completed for the Project in accordance with Department of Planning (DoP) requirements. This has included the identification of all potential hazards associated with the Project, an assessment of the potential consequence of a hazardous event, an assessment of the likelihood of a hazardous event occurring and an assessment of overall risk. In addition the PHA considers the influence of external factors such as bushfire on the potential for hazardous incidents to occur. ANE is classified as a Dangerous Good, not an explosive, and only becomes an explosive when sensitised at the end point of use (i.e. a mine). The PHA identified the following potential hazardous incident scenarios associated with the Project. They include: an explosion event with ANE, ANS or AN due to contamination and/or external heating; ANS decomposition and the subsequent formation of nitrogen oxides (NOx); and an escalation event such as an explosion at the existing Technology Centre facility triggering an explosion at the proposed ANE Production Facility. 2586/R02/Final December

7 Executive Summary The proposed ANE Production Facility has been carefully designed to minimise the potential risks. The PHA has found that there will be: no explosive events with potential for fatality or injury to people or damage to property located off site; 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 no potential for irritation effects from toxic products above the irritation risk criterion. Risks associated with the Project are able to be effectively managed by: minimising the quantities of raw materials, dangerous goods and ANE product on site; maintaining adequate separation distances (i.e. adequate buffer) from site boundaries and existing facilities; maintaining adequate separation distances between any combustible materials on site; incorporating engineering controls into the design of the proposed ANE Production Facility to minimise the potential for hazardous incidents; and maintaining an Asset Protection Zone around the proposed ANE Production Facility to protect against bushfire. In addition to the PHA, a transport risk analysis 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; and assess the potential impacts of a collision. A review of transport incidents within Orica and within the industry indicates that escalation events (such as explosions) of ANE or ANS during transport are extremely uncommon and that 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). However, to ensure risks associated with the transport of ANS and ANE are minimised, Orica has implemented a number of measures such as product loading controls at loading and unloading sites. 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. 2586/R02/Final December

8 Executive Summary Air and Odour An assessment of potential air quality and odour impacts has been completed for the Project. There are no air quality or odour issues associated with the existing facility at the Technology Centre. There may be some minor dust emissions associated with the clearing and earthworks for the proposed ANE Production Facility, however these are not expected to be significant and will not exceed any air quality goals at private residences. The process involved in the production of ANE is not a chemically reactive process but more of a mixing process and therefore does not generate any substantial emissions. There may be some very minor fumes emitted from some storage tanks associated with refilling activities, however these odour impacts are expected to be very minor and localised and are unlikely to be noticeable at private residences. To ensure that any potential air quality and odour impacts are minimised the following measures will be implemented during the construction and operational phases: the area to be disturbed by the proposed ANE Production Facility and access road will be minimised and disturbed areas will be stabilised and revegetated as soon as practicable; dust from ground disturbing works will be minimised by measures such as the use of water carts during construction activities, as required; and all equipment used on site will be maintained in good working order and will not be left idling while not in use. Greenhouse A greenhouse gas and energy assessment has been completed for the Project in accordance with the relevant guidelines and includes an assessment of emissions produced and energy consumed from the construction of the proposed ANE Production Facility and associated infrastructure, from the operation of the Project and from the transport of the ANE product from the Technology Centre to customers. The greenhouse gas and energy assessment has found that the construction and operation of the Project will contribute an estimated 8,364 tco 2 e per year which equates to per cent to national annual GHG emissions and per cent to international annual GHG emissions. Orica manages climate change impact and regulatory requirements and physical risks of climate change at the corporate level by establishing an objective of being carbon neutral; i.e. no net generation of GHG to the atmosphere. Orica propose to minimise greenhouse gas emissions and energy consumption through measures such as reviewing energy efficiency as part of plant and equipment procurement during the project planning phase, and reviewing and seeking to minimise the electricity consumption with measures such as automatic control of external and internal lighting and variable speed drive motors. 2586/R02/Final December

9 Executive Summary 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. The potential water quality impacts associated with the proposed ANE production facility can be managed to be negligible via the implementation of a water management strategy that segregates waters of different quality and contains all dirty or contaminated surface runoff. This includes the implementation of controls to ensure that no fuels, oils or chemicals will be released 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. The effective segregation of clean surface water runoff, stormwater and process waters via the implementation of the proposed water management strategy will also reduce the need to source water from off site. Waste Waste materials produced by the Project will be managed in accordance with the following waste management principles: waste avoidance; waste re-use; waste recycling; and waste removal and disposal. The proposed ANE Production Facility 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 DECCW s 2008 Waste Classification Guidelines and would be removed from site and appropriately disposed of by an approved licensed contractor. It is unlikely that there will be any significant impacts associated with wastes generated from the Project. Ecology 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 undertaken at the Technology Centre site have recorded the following within the area to be disturbed by the proposed ANE Production Facility: 84 plant species including two threatened species, Tetratheca juncea and Grevillea parviflora subsp. Parviflora; 2586/R02/Final December

10 Executive Summary 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 mammal species including the threatened Yellow-bellied Glider, 8 bat species including 2 threatened species, the little bentwing-bat and the large-footed myotis and 2 amphibian species. Further species and vegetation communities have also been recorded across the Technology Centre site as a result of recent and past surveys. The Technology Centre site comprises 292 hectares of predominantly open forest vegetation of which 8 hectares is currently occupied by the existing Technology Centre operations. The proposed ANE Production Facility will result in the disturbance of only an additional 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 measured proposed to manage and reduce the potential ecological impacts include: clear demarcation of the site to minimise clearing during construction; undertaking clearing in the months of March to August to minimise impacts on the breeding and nesting season where possible; the development and implementation of a clearing procedure including marking of hollow bearing trees and staged clearing to minimise impacts on fauna; and establishment of a Biodiversity Offset Area to offset the impact of the clearing associated with the construction of the ANE Production Facility. Bushfire A Bushfire Assessment has been completed for the Project in accordance with the relevant NSW Rural Fire Service guidelines. The Project is located on land zoned as bushfire prone land in accordance with local planning legislation. Where a bushfire hazard exists on or adjacent to a development site, an assessment of the threat is required to assist in determining the extent of the asset protection zone (APZ) required between the hazard and the development. The bushfire assessment has determined that an APZ of a minimum of 20 metres wide is required to 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 propose to establish an APZ of 30 metres around the proposed ANE Production Facility. It is also proposed to install a 10,000L water tank for bushfire fighting purposes as recommended by the bushfire assessment. Access to the Technology Centre 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 hazard 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. 2586/R02/Final December

11 Executive Summary Aboriginal and Historic Heritage An Aboriginal archaeological assessment was undertaken in conjunction with Aboriginal stakeholders to identify and assess the impacts on Aboriginal heritage sites. Surveys of the area to be impacted by the proposed ANE Production Facility identified one Aboriginal heritage site consisting of three artefacts. The site was found in a highly disturbed area on an exposed gravel bank beside the existing Orica access road and is considered to be of low significance. It is proposed to collect the site prior to the area being disturbed. As requested by the Aboriginal stakeholders, representatives of the Aboriginal community will monitor the topsoil clearing associated with the construction of the proposed ANE Production Facility. There are no historic heritage sites located within the area to be impacted by the proposed ANE Production Facility or access road. Justification and Benefits of the Project In 2008 the declared amount of Hunter Valley Coal exported was 97 Mtpa. However, The Australian Bureau of Agricultural and Resource Economics (ABARE) forecasts that international demand could drive Hunter Valley coal producers to supply between 130 Mtpa and 200 Mtpa by 2015, dependent on international coal prices and if unconstrained by coal chain capacity. As ANE is a key ingredient in many of the explosives that are commonly used in both open cut and underground coal mining, along with other industries such as open cut metal mining, the construction industry and quarrying, the predicted increase in the demand for Hunter Valley Coal will in turn drive up demand for ANE. By constructing and operating the proposed ANE Production Facility Orica will be able to meet the projected increase in demand for ANE, continuing this vital support for the coal industry in the Hunter and south-east region. The Project expects to be capable of meeting the projected emulsion demand to 2020 and beyond. A range of positive benefits will occur at a local, regional and state level as a result of the Project. The Project will create a number of benefits for the local community through direct means such as employment and wages, and indirect processes such as spending and use of services. The Project will also create economic benefits for local, state and national governments through land tax, rates, GST, fuel excise and other taxes through capital expenditure and ongoing expenditure on materials and equipment. The Project, through improved environmental management across the Technology Site, is expected to benefit the community. 2586/R02/Final December

12 Table of Contents TABLE OF CONTENTS 1.0 Introduction The Proponent Overview of the Project Site Context, Land Use and Land Ownership Overview of the Planning and Approval Process Outline of Studies Structure Existing Operations DA118/690/ DA118/698/ DA8/2006/809/ Assessment of Compliance with Existing Approvals Existing Environmental Management and Monitoring Description of Proposed ANE Production Facility Overview The Need and Justification for the Project Alternatives Considered Proposed ANE Production Facility Details Raw Material Delivery and Storage Process Description Traffic, Access and Car Parking Utilities Waste Management Construction Workforce Hours of Operation Planning Context Commonwealth Legislation Environment Protection and Biodiversity Conservation Act 1999 (EPBC Act) Native Title Act State Legislation Environmental Planning and Assessment Act Potentially Relevant State Legislation /R02/Final December 2009 i

13 Table of Contents 4.3 State Environmental Planning Policies State Environmental Planning Policy (Major Projects) State Environmental Planning Policy No. 33 Hazardous and Offensive Developments State Environmental Planning Policy Infrastructure SEPP 44 Koala Habitat Protection Regional and Local Planning Policies Hunter Regional Environmental Plan Repealed Hunter Regional Environmental Plan 1989 (Heritage) Cessnock Local Environmental Plan Stakeholder Consultation Authority Consultation Community Consultation Issues Raised by the Community Identification of Key Issues Ecology Existing Flora Existing Fauna Ecological Impact Assessment Proposed Management and Mitigation Measures Heritage Aboriginal Heritage Historical Heritage Traffic Principal Road Network Existing Traffic Conditions and Volumes Traffic Impact Assessment Mitigation Measures Noise Existing Noise Environment Assessment Criteria Noise Modelling Methodology Noise Predictions Cumulative Noise Impact Assessment Noise Mitigation and Management Hazards Preliminary Hazard Analysis /R02/Final December 2009 ii

14 Table of Contents Transport Hazard Assessment Air Quality and Odour Existing Air Quality and Site Context Potential Impacts Air Emissions and Odour Proposed Management and Mitigation Measures Greenhouse Gas and Energy Assessment Assessment Context and Methodology Orica GHGEIA Emissions Results Greenhouse Gas Management Water Management Existing Water Management Water Impacts and Management On-site Water Requirements Monitoring and Maintenance Cumulative Impacts Bushfire Assessment Existing Operations Fire Management Existing Surrounding Environment of Proposed ANE Production Facility Bushfire Threat Assessment Asset Protection Zones Proposed Management and Mitigation Measures Waste Waste Management Principles Waste Generated from Existing Operations Waste Generated by the Proposed ANE Production Facility Socio-Economic Considerations Social Profile Employment Economic Social Infrastructure and Services Property Values Community Views Summary of Potential Impacts Draft Statement of Commitments Conclusion Summary of Environmental Impacts Benefits of the Proposal Ecologically Sustainable Development Principles /R02/Final December 2009 iii

15 Table of Contents 9.0 Checklist of Requirements References Acronyms and Abbreviations FIGURES 1.1 Locality Plan Orica Existing Operations Existing Operations, Proposed ANE Production Facility and Access Road Conceptual ANE Production Facility Infrastructure Layout Land Ownership ANE Manufacturing Process Major Transport Routes Ecological Survey Areas Flora and Fauna Survey Locations Vegetation Communities, Threatened Species and Endangered Ecological Communities Proposed Biodiversity Offset Area AHIMS Sites in Region of Study Area Aboriginal Archaeological Survey Areas Location of Artefact Scatter Orica AS Orica Existing Operations, Proposed ANE Production Facility and Residential Receivers Surveyors Creek Catchment Area Proposed ANE Production Facility Water Management Strategy for Operational Phase Proposed ANE Production Facility Water Management System /R02/Final December 2009 iv

16 Table of Contents APPENDICES 1 EA Statement of Authorship 2 Director-General s Requirements 3 Consultation Material 4 Risk Tables 5 Ecological Assessment 6 Aboriginal Cultural Heritage Assessment 7 Traffic Assessment 8 Noise Impact Assessment 9 Preliminary Hazard Analysis and Transport Hazard Analysis 10 Greenhouse and Energy Impact Assessment 11 Bushfire Threat Assessment 2586/R02/Final December 2009 v

17 Introduction 1.0 Introduction Orica Australia Pty Limited (Orica) is seeking a development consent for the continuation of existing operations and the construction and operation of a proposed Ammonium Nitrate Emulsion (ANE) Production Facility at their existing Mining Services Technology Centre (Technology Centre), located at Richmond Vale, New South Wales (NSW) (refer to Figure 1.1). Orica s Technology Centre is located on the southern side of George Booth Drive in Richmond Vale NSW; approximately 22 kilometres west of Newcastle (refer to Figure 1.1). The Technology Centre is situated within the Cessnock local government area (LGA) on Lot 2, DP which is wholly owned by Orica and is approximately 292 hectares in area. The closest townships to the Technology Centre are Kurri Kurri, approximately five kilometres to the north-west and Seahampton, approximately four kilometres to the southeast of the Technology Centre. The Technology Centre currently operates under three development consents granted by Cessnock City Council in 1991, 1998 and The existing operations include office facilities, explosives research and testing facilities, a manufacturing facility for specialised packaged explosives, a quarry services storage depot, explosive storage magazines, potable water storage, wastewater treatment, and car parking as illustrated in Figure 1.2. There are currently approximately 220 people employed at the Technology Centre. The proposed ANE Production Facility will involve the construction of new infrastructure within the existing Technology Centre site (refer to Figure 1.3). The new facilities will allow for the production of up to 250,000 tonnes per annum of ANE which will be transported via road to other Orica operations and customers located in south-eastern Australia, but predominantly in the Hunter Valley. ANE is an explosive precursor which is sensitised to become an explosive only at the end point of use (i.e. the mine or quarry site). The Project will have a capital value of approximately $35 million. Orica is seeking a new project approval for the existing operations at the Technology Centre and the proposed ANE Production Facility (the Project). This consolidation of the existing operations and the proposed ANE Production Facility under a single development consent will enable more effective whole of site environmental management. The Project is identified as a Part 3A Project as defined by the State Environmental Planning Policy (SEPP) Major Projects 2005, and requires the approval of the NSW Minister for Planning under Part 3A of the Environmental Planning and Assessment Act 1979 (EP&A Act). This (EA) has been prepared by Umwelt (Australia) Pty Limited (Umwelt) on behalf of Orica to assess the potential environmental and social impacts of the Project. A statement of authorship for the EA is contained in Appendix 1. The EA has been prepared in accordance with the Director-General s requirements, contained in Appendix The Proponent The proponent for the Project is Orica Australia Pty Limited (Orica). Orica Mining Services is a division of Orica and the world's leading provider of commercial blasting solutions to the mining, quarrying and construction industries. The Hunter Valley contains a significant part of Orica Mining Services business with about 450 people employed in manufacturing, sales, marketing and research and development. Orica has operated the Mining Services Technology Centre located at Richmond Vale since /R02/Final December

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21 Introduction 1.2 Overview of the Project Orica is seeking to obtain one new project approval that includes: all existing operations undertaken at the Technology Centre; and the proposed ANE Production Facility and associated access road and service infrastructure. The existing operations which include office amenities, storage magazines, product storage and despatch facilities, research manufacturing facilities and other support at the Technology Centre are illustrated in Figure 1.2 and will remain unchanged. Further details relating to the existing operations are provided in Section 2.0. The proposed ANE Production Facility will have the ability to manufacture up to 250,000 tonnes of ANE per annum. All ANE manufactured will conform to the UN3375 classification. ANE is an explosive precursor which is sensitised to become an explosive only at the point of use, i.e. on a mine quarry or construction site. It is proposed to distribute the ANE produced at the Technology Centre via road transportation to other Orica operations for distribution or directly to customer sites in south-eastern Australia and predominantly in the Hunter Valley. Raw materials required for the production of ANE include ammonium nitrate solution (ANS), fuel blend ingredients such as canola and diesel oil, thiourea, urea, acetic acid, caustic soda calcium nitrate, prilled solid ammonium nitrate, and water. All raw materials will be delivered to the Technology Centre via road transportation from Orica s Kooragang Island operations and various other locations. The proposed ANE Production Facility is illustrated in Figure 1.3 and 1.4 and will include: chemical, fuel, water and product storage tanks; an ANE manufacturing plant; truck weighing, loading and unloading facilities; utilities including hot water, cooling water, chilled water and compressed air systems, an electricity transformer and distribution cables, and communications services; stormwater and spill management controls; and an office,,switch room, operations control room and quality control laboratory. 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. It is proposed to operate the ANE Production Facility on a 24 hours, 7 days per week basis in line with production requirements and product demand. The proposed ANE Production Facility operating hours will require 10 employees on 3 shifts over 24 hours at peak production capacity. It is expected that up to approximately 50 contractors will be involved with the construction of the proposed ANE Production Facility over a 12 month period. A detailed description of the Project is provided in Section /R02/Final December

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23 Introduction Site Context, Land Use and Land Ownership As described in Section 1.0, the Technology Centre is located on George Booth Drive at Richmond Vale approximately 22 kilometres west of Newcastle, and approximately five kilometres to the south-east of Kurri Kurri (refer to Figure 1.1). The Technology Centre encompasses approximately 292 hectares of which approximately 8 hectares is currently utilised by Orica s existing operations, with the majority of the rest of the site comprising native open forest vegetation. Numerous fire trails have been cleared through the woodland of the site and an approximately 90 metre wide electricity easement runs through the northeastern portion of the site. The topography of the area can be described as undulating and rolling hills, with long drainage plains (>500 metres) that are gently inclined. The Technology Centre is located in the catchment area of Surveyors Creek, a tributary of Wallis Creek, on the footslopes of the Sugarloaf Range. Surveyors Creek has a catchment area of approximately 2940 hectares. The Technology Centre site is traversed by a number of small drainage flowpaths that form part of the Surveyors Creek catchment. The confluence point of Surveyors Creek and Wallis Creek is approximately 3 kilometres north of the Technology Centre. The Technology Centre site is traversed by a number of small drainage flowpaths that form part of the Surveyors Creek catchment. The soil types occurring within the Project area are the Beresfield and Killingworth soil landscapes. The Beresfield soil landscape dominates the western section of the Project area and the Killingworth soil landscape dominates the eastern section of the Project area. These soil types are strong and textured contrast soils with relatively shallow and poorly structured topsoil. Some of the limitations of these soils include being potentially highly erodible, highly acidic, and seasonally waterlogged. The area surrounding the Technology Centre encompasses a variety of land use activities including agriculture, bushland, rural residential, rural industrial activities, transport corridors and the Sugarloaf State Conservation Area. Tasman Underground Mine is located approximately 2.5 kilometres to the south-east of the Technology Centre. As shown on Figure 1.5 the Technology Centre is wholly owned by Orica. Surrounding landholders are private residential, Coal and Allied, state government owned land, and private industry (refer to Figure 1.5). The nearest resident is located to the north-west, approximately 1.8 kilometres from the proposed ANE Production Facility. There are approximately 21 private residences located within a 3 kilometre radius of the Project, to the north-west, west and south-west. 1.3 Overview of the Planning and Approval Process A detailed discussion of the planning context for the Project is included in Section 4.0. The proposed ANE Production Facility requires approval under Part 3A of the EP&A Act as it is a class of development listed in Schedule 1 of SEPP (Major Projects) The Minister for Planning is the consent authority pursuant to Part 3A of the EP&A Act. The land which is the subject of the Project Application is located wholly within Cessnock LGA. Under the Cessnock Local Environmental Plan (LEP) 1989, the land is zoned Rural 1(a) as discussed further in Section The Project is consistent with the activity description provided in Schedule 5 of the LEP and is therefore permissible with consent. 2586/R02/Final December

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25 Introduction The current Project Application pursuant to Part 3A of the EP&A Act seeks to provide one single approval that covers all existing and proposed activities at the Technology Centre. In addition to approval under Part 3A of the EP&A Act, the Project, if approved, may also require various other approvals, licences and permits for certain activities associated with the Project. These include: modification of the existing Environmental Protection Licence (EPL) under the Protection of the Environment Operations Act 1999 (PoEO Act); modification of the existing WorkCover licence under the Explosives Act 2003 & OHS Amendment (Dangerous Goods) Act 2003; and classification of the Technology Centre site as a Major Hazard Facility (MHFs) under the Occupational Health and Safety Amendment (Major Hazard Facilities) Regulation 2008 as a result of the addition of the proposed ANE Production Facility. All planning considerations relating to the project have been assessed and are discussed further in Section Outline of Studies Umwelt has prepared this EA on behalf of Orica. Specialist studies undertaken for the Project as part of the EA include the following: Ecology; Aboriginal heritage; Historic heritage; Traffic Noise; Preliminary hazard analysis (PHA); Transport risk analysis; Greenhouse gas and energy assessment; Water resources; and Bushfire assessment. Further details of the Project Team are provided in Appendix /R02/Final December

26 Introduction 1.5 Structure The EA has been prepared in accordance with the EP&A Act and Regulations (refer to EA Statement of Authorship in Appendix 1). An overview of the layout of this EA is provided below: The Executive Summary provides a brief overview of the Project, the major outcomes of the environmental assessment, and an outline of the key project commitments to mitigate potential impacts. Section 1.0 provides background, an overview of existing operations and the proposed ANE Production Facility, context for the Project, the approval process and an overview of the studies conducted for the Project. Section 2.0 provides a detailed description of the existing operations at the Technology Centre. Section 3.0 provides a detailed description of the proposed ANE Production Facility and associated infrastructure. Section 4.0 describes the planning context for the Project, including the applicability of Commonwealth and State legislation. Section 5.0 describes the authority and stakeholder consultation that was undertaken as part of the EA process. Section 6.0 describes the potential environmental issues identified as part of this process for detailed assessment in the EA and contains a description of the existing environment and a comprehensive analysis and assessment of the environmental impacts of the Project, including the cumulative impacts. Section 7.0 details the draft Statement of Commitments proposed to be adopted throughout the life of the Project in order to mitigate impacts. Section 8.0 contains the EA conclusion. Section 9.0 contains a checklist of environmental assessment requirements. Section 10.0 provides a list of references referred to in the EA. Section 11.0 contains a list of acronyms and abbreviations. 2586/R02/Final December

27 Existing Operations 2.0 Existing Operations As outlined in Section 1.0, Orica have been operating at the Technology Centre at Richmond Vale since 1991, under development consents issued by Cessnock City Council. The facilities which have been constructed at the Technology Centre are illustrated in Figure 1.2 and include: office facilities to accommodate approximately 220 people; a training centre; a mixing laboratory; a research laboratory; a research magazine; a quarry services depot; a test cell; an engineering stores depot; a site security compound; a water storage area; sewerage treatment plant; and car parking. DA118/690/257, which allows for the majority of operations at the Technology Centre, was granted to ICI Australia Operations Pty Limited (now Orica) in The development consent allowed for explosives research and production activities. The approved production and manufacturing activities allowed for the manufacture of packaged explosives, emulsion based primers and ANFO type products, primarily Amex. However the facilities for these activities have not been constructed. Orica has approval for the production capacities outlined in Table 2.1 below. Table 2.1 Approved Production Capacity Facility Product Unit Size Quantity Package Building A Powergel Small Diameter Explosive varying in size 4000 tpa from 104 grams to 25 kilograms Packaged Building B Primers Varying in size to a maximum of 500 kilograms 1024 tpa Production Area 2 Amex Bags maximum weight of 25 kilograms 2000 tpa DA118/690/257 has been modified on two occasions in 1991 and 1992 to provide for changes to road arrangements and alterations to the site layout. Further details of the activities and facilities approved under this development consent are provided in Section /R02/Final December

28 Existing Operations Two subsequent development consents DA118/698/53 and DA8/2006/809/1 also provide for activities at the Technology Centre. DA118/698/53 was granted in 1998 for the construction and operation of a quarry services depot. DA8/2006/809/1 was granted in 2006 for the construction of a training room. Both the quarry services depot and the training room approved by the above development consents have been constructed and form part of the existing operations at the site (refer to Figure 1.2). Further details of the activities and facilities approved under these two development consents are contained in Sections 2.2 and 2.3. The existing operations approved by the current development consents will remain unchanged as a result of the introduction of the proposed ANE Production Facility to the Technology Centre. It is proposed that all the existing development consents be replaced by a single development consent that would include the construction and operation of the proposed ANE Production Facility. Therefore works Orica had approval for, under the existing development consents, but have not yet been built, will no longer be able to be constructed under the proposed new development consent and all of the current development consents will be surrendered. 2.1 DA118/690/257 Operations approved under DA118/690/257 were to occur in a number of stages over a 10 year period according to market demand. Due the changes in market demand, some of the facilities provided for under DA118/690/257 have not been constructed to date. Table 2.2 outlines the infrastructure approved under DA118/690/257 and which facilities have been constructed to date. Descriptions of the facilities approved under DA118/690/257 which form part of the existing operations at the Technology Centre are outlined below. The continuation of all existing operations undertaken under DA118/690/257 is sought as part of this Project Application. Table Structures Approved Under DA 118/690/257 Component Facilities Constructed? Office Building Technical Staff Office Yes Engineering Staff Offices Yes Operations Staff Office Yes Conference Rooms Yes General Amenities Partially Research Facilities Research Laboratory 1 Yes Research Laboratory 2 No Research Laboratory 3 No Research Laboratory 5 No Mixing Laboratory Yes Research Magazine Yes Underwater Test Site No Test Cell Yes Detonator Magazine No Engineering Depot Yes Raw Materials Store 1 No 2586/R02/Final December