December/January 2020/21 Insurance News (magazine)

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he world was shaken by scenes of the massive destruction in Beirut following an explosion of 2750 tonnes of ammonium nitrate that was apparently abandoned in a warehouse. The blast in the Lebanese capital’s port flattened a large section of the city, killing at least 200 people and injuring thousands. For Keith Craig, a chemical engineer who lives in the New South Wales city of Newcastle, it was a grim reminder of the devastation this widely used chemical can wreak. Because while its primary purpose is as a fertiliser, ammonium nitrate is also commonly used for blasting in the mining industry. Just add some diesel and a detonator and it becomes an explosive. For Mr Craig and the Newcastle community at large, the Beirut disaster has reignited long-running fears of a potentially similar fate in the event of an accident at a nearby ammonium nitrate plant that holds up to four times the amount that hit Beirut. Located on Kooragang Island, the Newcastle facility is less than a kilometre away from the nearest homes and about three kilometres from the city’s central business district. Orica, one of the world’s largest providers of commercial explosives, owns the plant. The site houses between 6000 and 12,000 tonnes of ammonium nitrate at any one time, depending on demand from the Hunter

Valley coal mining industry. Orica says all ammonium nitrate storage areas at the facility are fire-resistant and built exclusively from non-flammable materials as part of the company’s rigorous safety approach and risk management plan. An additional layer of security comes in the form of designated exclusion zones around these areas. The plant must also comply with safety standards set by the NSW Government, and is regularly inspected by authorities. Orica also undertakes regular site-wide emergency response exercises, including an annual one with local emergency services. But the assurances are not good enough for Mr Craig, who as a member of Stockton Community Group has been campaigning for at least 10 years for the plant to be relocated away from populated areas. The group has intensified its efforts since the Beirut incident, launching a public petition to pressure lawmakers into action. “You can argue [that] in Beirut it wasn’t stored well and here they store it a lot better, but what we are saying is while it’s stored a lot better there is still a chance of an explosion,” Mr Craig told Insurance News. “There’s a thing called a black swan event, it might be a very rare event but if it happens, boy it’s going to be catastrophic. Beirut is a classic example of that. “The outcome would be catastrophic. It’s a real concern for the Newcastle community.”

insuranceNEWS

Deadly aftermath: Beirut was the scene of the latest ammonium nitrate explosion

December 2020/January 2021

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