Update on Orica's Kooragang Island Ammonia Plant restart

24 January 2012

Orica is today providing an update on the restart of its Ammonia Plant at Kooragang Island. The restart has been progressing at a cautious pace, with the emphasis at each stage on safety.

Orica is not satisfied with the performance of one of the compressors at the Kooragang Island Ammonia Plant, which will result in a significant delay in the restart process. Orica is currently working with the compressor supplier to address the performance concerns.

Orica will not proceed with the restart of the Ammonia Plant until we are satisfied that the compressor can perform as designed. Orica anticipates this may take several weeks.

Separately, Orica has successfully restarted the High Temperature Shift Catalyst Vessel, which is the section of the plant that was the source of an emission of hexavalent chromium on 8 August last year. This was completed without incident and means that there will be no hexavalent chromium at the plant for the remainder of the restart process.

Orica's chief executive officer, Mr Graeme Liebelt, said: "We have kept the community updated on the restart of Kooragang Island at important stages of the process and the community's safety remains absolutely paramount.

"Restarting a plant of this type involves a number of important steps and we are completing each step systematically and without compromise."

When the restart process recommences, there remains the chance that the community may again see gas flares from the vents. There is no risk to the local community, the environment or the plant from gas flares from the vents. The byproduct of the gas flares is water.

Ammonium nitrate production remains unaffected.

Media contact: Nicole Ekert, Communications Manager, Mobile: 0407 166 783

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