THERE is no doubting the explosive qualities of ammonium nitrate under certain circumstances.
That's why it's the explosive of choice in the coal industry, when mixed with diesel.
It can also decompose under high heat, creating a rapid release of gas that can explode and cause the sorts of chain reaction that characterised the extraordinarily damaging destruction in Beirut in August 2020, when at least 217 people were killed, and 7000 injured, in a port warehouse explosion that did an estimated $20 billion worth of damage.
Fear of such an explosion in Newcastle, centring on Orica's manufacturing facility on Kooragang Island, have long been a concern of residents' groups, and led the state government, through its regulator SafeWork, to contemplate changes to the safety regulations for ammonium nitrate.
The Stockton Community Group has welcomed the inquiry and supported a strengthening of the regulations, but Orica and other industry bodies say in submissions to SafeWork that the NSW industry has operated without serious problem for half a century, and that the proposed changes in regulatory approach would increase public risk, rather than reduce it.
Orica's warning - that the changes could lead to the closure of the Kooragang plant - may be an exaggeration.
The ultimate answer may be a long-called-for shift to storing more ammonium nitrate closer to the mines, where most of Orica's product is used.
Such movement might entail double-handling and would certainly increase the company's production cost.
But if reducing the stockpiling on Kooragang - and at Sandgate by transport company Crawfords Freightlines - was ultimately deemed necessary, then those costs would presumably be passed down the line.
On an initial reading, the NSW Minerals Council and others have a point when they say that ending domestic manufacture of ammonium nitrate would create new risks, because the alternative would be importing overseas product through the Port of Newcastle.
The "Ships of Shame" and other inquiries have shown global shipping does not always have the standards Australians expect from domestic industry.
We need to be sure we do not replace the existing remote risk with a greater threat.
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