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November 11, 2011

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Explosives maker shut down after toxic leaks

AUSTRALIAN environment officials ordered Orica, the world's largest explosives maker, to shut down one of its plants yesterday after the company was charged over a gas leak that exposed a community to a cancer-causing compound.

The New South Wales state Environment Protection Agency said the Melbourne-based company's performance at the plant near the coastal city of Newcastle was unacceptable. Charges against Orica came just hours before another leak at the plant put two railyard workers in hospital.

Greg Sullivan, deputy chief executive of environment regulation, said: "Last night, I telephoned the chief executive of Orica and told him the performance of Orica was unsatisfactory and it needed to improve.

"I also made clear that the series of events at Orica are disturbing, and both the regulator and the community need to have confidence they can operate that plant safely."

Orica came under fire after a leak from the plant on August 8 sent a carcinogen, hexavalent chromium, into the air. Traces of the compound were found in the Newcastle suburb of Stockton, sending residents into a panic.

The company did not inform the EPA until the next day. State health officials later said there was no increased risk of cancer to the community because of the leak, but furious residents accused the government of waiting too long to warn them.

Hexavalent chromium gained notoriety after being featured in the Oscar-winning movie "Erin Brockovich," based on the true story of a woman who fought a US company accused of leaking the contaminant into a small California town. The real Erin Brockovich has met Australian lawyers looking into the Orica case.

On Wednesday, the EPA charged Orica with failing to operate the plant properly and failing to alert authorities fast enough about the August incident. Orica could face up to A$2 million (US$2 million) in fines if convicted.

Nicole Ekert, a spokeswoman for Orica, declined to comment.

Hours after the charges were announced on Wednesday, there was an ammonia leak at the same plant.

Two workers at a nearby railyard were overcome by fumes and taken to hospital. Fire and rescue officials said there were no further health risks.

Orica said in a statement it had notified the EPA of Wednesday's leak and the incident was under investigation.

The company was ordered to appear in the state Land and Environment Court on February 3.

Orica's shares were down 3.3 percent to A$25.54 on the Australian stock exchange yesterday. The company, which has operations in about 50 countries, makes commercial explosives for use in the mining industry.




 

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