REGIONAL IMPACT ASSESSMENT STATEMENT
Department:
· DEPARTMENT OF PREMIER AND CABINET
· DEPARTMENT FOR ADMINISTRATIVE AND INFORMATION SERVICES
1. Title:
· REGULATIONS FOR SECURITY SENSITIVE SUBSTANCES -AMMONIUM NITRATE (SSAN)
2. Issue:
Community safety and security from terrorist attack posed by the misuse of ammonium nitrate as a bomb in SA and other jurisdictions.
Ammonium nitrate can be used in explosives and has a history of terrorist use. In accordance with national security objectives, all Australian governments agreed on 25 June 2004 to a national approach to ban access to high concentrations of ammonium nitrate (greater than 45 per cent) which is to be named security sensitive ammonium nitrate (SSAN) for other than specifically authorised users.
This agreement has resulted in the establishment in each state and territory of a licensing regime for the use, storage and transportation of SSAN. The licensing regime will ensure that SSAN is only accessible to persons who will store and handle it safely and securely.
It is not proposed to ban ammonium nitrate but regulate its transport, use and storage. It is recognised that there is a high use of ammonium nitrate and there are no alternatives that provide exactly the same effect and at the same cost.
3. Region(s):
The regulations cover all of South Australia.
The regions that will be most affected are ones in which horticultural businesses require high concentration (45 per cent and above) of ammonium nitrate fertilizer and regions in which mining activity (primarily open cut) or mining related activity take place, that is:
· (Northern) Adelaide Plains, Adelaide Hills, Murray Mallee, Riverland (for horticulture); and
· Far North of the state (for mining).
Ammonium nitrate has been an unregulated good and therefore very little information on its usage or the number of persons who have unsupervised access to it is available. There is little information on how many of the current users of ammonium nitrate in agriculture would be able to use concentrations of less than 45 per cent and how many will still require concentrations of 45 per cent (and higher). The use and likely impact of the regulations in specific regions with high levels of horticultural activity, therefore has been difficult to assess with a high degree of precision.
Uses of ammonium nitrate in Australia
Ammonium nitrate is not manufactured in South Australia. There are four manufacturing plants in Australia; Kwinana Western Australia (CSBP Wesfarmers), Newcastle NSW (Orica), Gladstone Queensland (Orica) and Moura Queensland (Queensland Nitrates). Importation of ammonium nitrate from overseas generally comes through ports in Queensland and Western Australia (the largest mining states). Most imported ammonium nitrate comes from South Africa and China, with Lithuania and the Ukraine supplying a much smaller amount of largely fertilizer grade AN.
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Between 90 and 95 per cent of ammonium nitrate in Australia is used in the mining industry (as an explosive) the remaining is used in the agricultural sector (as a fertilizer). The most recent Agricultural Census by the Australian Bureau of Statistics shows that 3,497 farms (in Australia) used a total of 36,054 tonnes of ammonium nitrate fertilizer in the year ending June 2001. The main users of ammonium nitrate fertilizer are horticulturalists (25,000 tonnes) followed by the dairy industry. Ammonium nitrate fertilizer amounts to less than 1% of all fertilizer used in Australia. Ammonium nitrate fertilizer’s most common usage is for: side-dressing vegetables; tree and plantation crops; and for top-dressing rain-grown crops and pastures where ammonium volatilization loss (nitrogen lost as ammonia gas) may be high, such as dairy pastures in southern Australia during the drier times of year.
Agricultural usage of ammonium nitrate in SA
Table 1: ABS statistics by local government areas. Total 6794 tonnes for the year ending June 2001 (Those with less than 200 tonnes not listed)
Breakdown / Tonnes /Loxton and Waikerie / 1515
Renmark Paringa / 1463
Southern Mallee / 653
Mid Murray / 496
Playford / 328
Berri and Barmera / 242
Alexandrina / 236
Murray Bridge / 201
In February 2005, Rural Solutions SA, Department of Primary Industries prepared a report on the Use of Ammonium Nitrate and Calcium Nitrate by South Australia Agriculture. The following information is taken from that report.
Table 2: Ammonium Nitrate and Calcium Ammonium Nitrate Use in South Australia by Crop and Region
Crop/Industry / Region / Ammonium Nitrate (AN) Rate(kilograms per hectare) / Calcium Ammonium Nitrate (CAN) Rate (kilograms per hectare) / Remarks /
Processing Potatoes / South East / 0-330 / 150 / Ranged from zero use to largest grower using 330kg/ha
Processing Potatoes / Murraylands NAP/AH / 150-250 / Use of AN assists in SG maintenance
Ware Potatoes / Riverland / - / - / -
Wine Grapes / South East(SE) / Nil / Nil / Not used in SE
Wine Grape / Riverland / 100-150 / - / -
Turf / Riverland/NAP/AH / 20-50 / - / Occasional use for the rapid greening of turf, when timeframes are short for additional harvests of turf required. The turf industry on the whole has moved to other sources of nitrogen
Hydroponic herbs / SE / Nil / - / Blended base fertilizers purchased from suppliers
Almonds / Riverland / 100-200
300 / - / Critical to early tree establishment using application of nitrogen with each irrigation event (fertigation).
Used in early part of season at flowering, early leaf development and at post harvest
Stone fruit / Riverland / 200-250 / - / Essential to advanced fertigation and Open Hydroponic systems and traditional systems
Carrots / NAP / 100-150 / - / Used in late autumn and early spring production.
Carrots / Murraylands / 100-150 / - / Used in late autumn and winter and early spring production
Brassica's / Murraylands, NAP AH ' / 150-200 / - / -
Onions / Murraylands, NAP AH / 10-150 / 200-250 / Onion producers are applying AN and CAN in dry form via broadcast spreaders or in some cases as part of fertigation program applied during the early part of the growing season. AN and CAN have high levels of acceptance within producers using fertigation methods
Dairy Pasture / SE and Lower Murray / Nil / Nil / Dairy industry utilises cheapest available form of N (urea).
Dairy SA advises very few, if any, dairy farmers use on pastures.
Canola / SE / Na / - / Use restricted to years when the soil temperature is low and moisture levels are moderate to high
Over the past eighteen months a decision by many fertilizer manufacturers nationally and in SA not to supply ammonium nitrate fertilizers in combination with the boom in the mining sector has contributed to a decline in the availability of ammonium nitrate for use as an agricultural fertilizer.
Horticulturalists
The following information, on number of growers likely to be affected was provided during the initial consultations undertaken with key stakeholder groups between December 2004 and April 2005.
The Virginia Horticulture Centre represents 700 members out of estimated 1,200 growers. Many of these growers are not active (‘dormant’) and the Centre’s membership predominately comprises growers within Mallala, Salisbury, Angle Vale, Two Wells and some in other regions of the state (e.g. Southern Vales). Growers range from large companies (e.g. Mondello and Comit), a number of mid-sized growers and a large number of small greenhouse growers. A high proportion of small greenhouse growers are Vietnamese, Khmer, Cambodian and Indian.
The SA Farmers Federation (SAFF) indicated that within agriculture the horticultural sector is likely to be the most affected by the proposed regulations in SA. SAFF indicated that the sector is represented by many organisations. Some of these are regionally based eg Virginia Horticultural Association and others are sector or membership based, e.g. Horticulture Australia; AUSVEG; SAFF. SAFF noted that SA has a high number of broad acre Horticulturalists (potato & carrot growers).
The Apple and Pear Growers association indicated that 80 per cent of their membership is in the Adelaide Hills region, one per cent in the Riverland, nine per cent are in the South East. The Association estimated that in SA the number of growers that might be affected by the new regulatory regime were 600 vegetable growers, 800 citrus growers, 400 apple, pear and cherry growers. They suggested that grape and dairy farmers would not be affected. The Dairy Farmers Association confirmed that the regulatory regime would not significantly impact on Dairy Farmers in SA.
The Industry Development Board Horticulture member in Mt Gambier indicated that horticulture in the South East is highly mechanised and on a very large scale. Potato growers mainly produce for frozen ‘chip’ production and a small number of growers produce for the fresh food sector. The Board indicated that the majority of farmers in the South East use CAN or Urea in preference to ammonium nitrate.
Onion growers, in the Riverland and Adelaide Hills Region, indicated that it was vital for them to have access to ammonium nitrate to fertilize crops during June and July. The sector compromises a small number of family owned businesses that produce almost all of the onions available in the market place.
There is no information available on the numbers of growers in regions that will need to continue to use 45 per cent concentrated ammonium nitrate or whether other product blends would meet their requirements.
Fertilizer companies have begun to supply blends, which contain less than 45 per cent ammonium nitrate. The Department of Primary Industries and Resources SA has been advised that companies anticipate that the majority of Agents, Dealers and farm customers will switch to blends containing less than 45 per cent ammonium nitrate rather than obtain the necessary SSAN licences. Overall these companies suggest that:
· The overall demand for ammonium nitrate based fertilizers in South Australia will remain relatively unchanged at 4 - 5 000 tonnes per annum of Calcium Ammonium Nitrate (Cal- Am) and 6-8000 tonnes per annum of Ammonium Nitrate.
· Most Cal-Am will be blended into non-SSAN fertilizer blends.
· Few resellers and farmers are expected to obtain a SSAN licence.
· The amount of SSAN imported into Adelaide will not change greatly, however much of it will be diluted into products that will not be classified as SSAN.
To assist farmers wanting to use non-SSAN grade ammonium nitrate products, PIRSA will include relevant links and information on their website. SafeWork SA will continue to work with PIRSA and the Office of Regional Affairs to identify and address issues as they emerge during the six-month transition period for the introduction of the regulations
Miners
The majority of mining takes place in the northern regions of SA. An estimate of the combined membership of the four mining associations is approximately 150 miners. Small operators tend to use ammonium nitrate only when required rather than store large amounts in one place and may have only small amounts e.g. one to two 40kg bags on hand at any one time. Although opal miners have alternative explosives for blasting, familiarity with ammonium nitrate as an explosive means that small-scale miners will continue to use it. A small number of large-scale mining companies operate in S.A. These companies use a great deal of ammonium nitrate and may store 100 tonnes or more in one location at a time. It is anticipated that large-scale mining companies will continue to use ammonium nitrate as an explosive.
4. Stakeholders
The key stakeholders that will be affected by the regulation of ammonium nitrate include:
· Horticulturists: onion growers, potato growers, almond growers, citrus growers, stone fruit growers, carrot growers and Brassica growers.
· Mining Industry, including coal and opal miners.
5. Background:
In December 2002, the Council of Australian Governments (COAG) agreed to a national review of the regulation, reporting and security around the storage, sale and handling of hazardous materials. The first hazardous material examined was ammonium nitrate. Ammonium nitrate was identified as a priority because of its history of terrorist use and concern about its ready availability. The aim of the review was to identify means to limit opportunities for the illegal/unauthorised use of hazardous materials through either banning the material or improving Australia’s regulation, monitoring, control and education systems.
In April 2004, prior to the June 2004, Council of Australian Governments (COAG) meeting, the SA Government agreed to develop regulations under the Explosives Act 1936 restricting the use of ammonium nitrates in South Australia.
In June 2004 COAG agreed to regulate the use of ammonium nitrate through a nationally agreed process that recognised control of explosives as state and territory responsibility. It was agreed that each state would develop its own regulatory regime based on a set of agreed COAG principles.
Security Sensitive Ammonium Nitrate (SSAN) was defined as ammonium nitrate, ammonium nitrate emulsions and ammonium nitrate mixtures containing greater than 45 per cent ammonium nitrate, excluding solutions. (These include dangerous goods under the Australian Dangerous Goods Code with the UN numbers 1942, 2067, 2068, 2069, 2070, 2071, 2072, 3375 and 3139 where applicable. Forty-five per cent was chosen because it is the maximum percentage of ammonium nitrate allowed under the United Nations Dangerous Goods Codes (entry UN2071, an ammonium nitrate fertilizer of Class 9 (miscellaneous), with unrestricted combustible material).