Burrup Nitrates Technical Ammonium Nitrate Production Facility PROJECT

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An Oswal Group Global and Yara International ASA Joint Venture

                                                                                                         SITE LOCATION

              Burrup Nitrates
              Technical Ammonium Nitrate Production Facility
              PROJECT UPDATE                                                                                                                               January 2010

       Who is Burrup Nitrates?                                                                        The environmental assessment process
       Burrup Nitrates Pty Ltd (BNPL) is an Australian company based in                               The Commonwealth Department of the Environment, Water,
       Perth, WA, and is a 50:50 joint venture between Burrup Holdings                                Heritage and the Arts (DEWHA) and the Western Australian Office of
       Ltd and Yara International ASA.                                                                the Environmental Protection Authority (OEPA) determined that the
                                                                                                      proposal should be formally assessed at the Public Environmental
       Burrup Holdings is a private Australian company formed in 2000,                                Review (PER) level. The Commonwealth and WA Governments
       which operates ammonia production facilities on the Burrup                                     agreed to a coordinated environmental assessment process,
       Peninsula through its wholly-owned subsidiary Burrup Fertilisers                               whereby a single PER document will satisfy the environmental
       Pty Ltd (BFPL). Its majority owner is the Oswal Group.                                         assessment requirements.
       Yara International, a Norwegian company is one of the world’s                                  BNPL prepared a draft PER in accordance with the OEPA and
       largest chemical companies, a leader in the production of                                      DEWHA requirements set out in the approved environmental
       ammonium nitrate and the world’s largest supplier of mineral                                   scoping document.
       fertiliser.                                                                                    The draft PER will be released for public comment in early 2010, and
                                                                                                      will be open for comment for eight weeks. DEWHA and the OEPA
       What is Technical Ammonium Nitrate?                                                            will review any public submissions, and BNPL’s response to those
                                                                                                      submissions, and then make a recommendation to their respective
       BNPL proposes to construct and operate a facility to manufacture
                                                                                                      environment Ministers on whether the project should be approved
       technical ammonium nitrate (TAN), the main raw material for ANFO
                                                                                                      and under what conditions.
       (a mix of porous Ammonium Nitrate and Fuel Oil), which is the most
       widely used and economical civil mining explosive currently on the                             BNPL expects that the impact assessment will demonstrate a
       market. The TAN will be used in the Australian mining industry.                                low risk of significant impact through the use of Best Available
                                                                                                      Technology, locating and designing the TANPF appropriately, and
       What does the TANPF consist of?                                                                incorporating mitigation measures to minimise any potential
       The TAN production facility (TANPF) will be located on the Burrup
       Peninsula approximately 13 km northwest of Karratha in the Shire                               The conditions set by the Commonwealth and the State will
       of Roebourne, Western Australia. It will be built next to the BFPL                             likely include the development of a Construction Environmental
       ammonia plant in the King Bay/Hearson Cove Industrial Precinct.                                Management Plan (CEMP) and Operations Environmental
                                                                                                      Management Plan (OEMP) to ensure the desired environmental
       Yara will oversee the design, construction and commissioning of
                                                                                                      standards are achieved during construction and over the life of
       the TANPF project. It will be operated by Burrup Holdings and will
                                                                                                      the TANPF.
       •           process plants                                                                     In addition to meeting its commitments under Commonwealth
                                                                                                      and State legislation, BNPL is committed to using best practice
       •           utilities area
                                                                                                      environmental management to avoid, minimise or mitigate any
       •           bulk and bagged storage for finished product
                                                                                                      potential environmental impacts arising from the project.
       •           associated buildings including a workshop, central control
                   room, laboratory, safety and security gatehouse, administration
                   office and staff amenities.

                   Project timeline
                   Construction of the TANPF is planned to commence in the last quarter of 2010, with commissioning by the last quarter of 2013.
                                                                 Project Phase             Start                                          Expected Finish
                                                                 Environmental Approvals   October 2008                                   Mid 2010
                                                                 Construction              Last quarter 2010                              Mid 2013
                                                                 Commissioning             Mid 2013                                       Last quarter2013
                                                                 Operation                 Last quarter 2013                              Plant life of 20 plus years
                                                                 Decommissioning           4-6 months after the plant’s end of life
           3D Photomontage of proposed TANPF (left) and the existing BFPL plant (right) looking south from Tank Hill, Burrup Peninsula

Community consultation                                                       Health and safety
BNPL has put in place a program of stakeholder consultation aimed            Safety of staff and the local community is of paramount importance
at:                                                                          to BNPL, and the company has undertaken a coarse Quantitative
                                                                             Risk Assessment to identify any potential risks that the TANPF might
•   providing the public with balanced and objective information to          pose in accordance with all Major Hazard Facility regulations. When
    assist them in understanding the proposal; and                           construction begins, BNPL will have in place a comprehensive Health
•   obtaining public feedback on assessments, alternatives and               and Safety Management Plan to ensure the TANPF is developed and
    decisions.                                                               operated in the safest manner possible throughout the life of the
Consultation to date has included face to face meetings,
presentations and formal meetings with individuals and groups, the
publication and distribution of project information sheets, and the
                                                                             Service providers and infrastructure
maintenance of a dedicated project website (www.burrupnitrates.              During construction there will be increased demands on service
com).                                                                        providers and infrastructure on the Burrup, and in the towns of
                                                                             Dampier and Karratha. Around 60 new houses will be required
Issues raised by the community have included the impact of the               for the permanent operations workforce, with BNPL operations
project on the Burrup Peninsula’s rock art, local traffic impacts, health     staff likely to live in Karratha. BNPL will liaise with the Shire of
and safety, loading on local service providers and infrastructure, and       Roebourne, and government and industry service providers, to
opportunities for employment and local industry participation.               keep them fully informed of project timing and requirements so that
                                                                             service provision can be planned.
Rock art
In April 2009, following a detailed research program looking at the          Employment and industry participation
potential effect of industrial emissions on rock art, the independent        The average construction work force will be approximately 400
Burrup Rock Art Monitoring Management Committee and                          persons, with a peak of up to 650. In operation, the TANPF will
scientific research agency CSIRO reported to the Minister for State           require about 60 full time (direct) personnel.
Development that there was “no scientific evidence to indicate
that there is any measurable impact of emissions on the rate of              BNPL is keen to employ local people and local business in the
deterioration of Aboriginal rock art in the Burrup“. See http://www.         construction and operation of the TANPF project, and will liaise with
dsd.wa.gov.au/6757.aspx for more details.                                    local industry groups and suppliers to maximise the potential for
                                                                             local participation in the project.
BNPL has undertaken a heritage review of the project area, to map
and record any sites of significance and will develop an Aboriginal           These issues are covered in more detail in the draft PER document,
Heritage Management Plan to avoid or minimise any impact on                  which will be available shortly for download from the BNPL website,
heritage sites during construction and operation of the plant. BNPL          or on disk (free) or in hardcopy ($10) directly from BNPL.
has and will continue to work with traditional landowners to ensure
any heritage sites are managed appropriately.
Based on the information obtained by BNPL to date, no rock art
sites are likely to be directly impacted or relocated as a result of
this project.

BNPL will work closely with the Shire of Roebourne, Main Roads WA
and the WA Police throughout the life of the project to ensure that                 More information?
project traffic is managed so that public safety remains paramount.                  If you would like more information, a copy
At this stage, it is planned to have all construction and                           of the draft PER, or you have any questions
operation staff bussed in and out of the site to help prevent
                                                                                    on the proposed TANPF, please go to www.
additional traffic loads on the local roads. Shifts will also be
staggered to try and avoid peak times of travel in the region                       burrupnitrates.com or contact:
Vehicle flow onto the Burrup Peninsula will change as a result of the                Kaushik Gor
TANPF: during construction as construction materials are delivered                  Principal Engineer - Projects
and workers are moved around; and, once in operation as operations
staff move to and from the site and TAN is transported to customers.                Lv 5, 182 St Georges Terrace, Perth, WA, 6000
                                                                                    Telephone: +61 (08) 6265 7500