COALPRO RESPONSE TO DEFRA CONSULTATION ON AMMONIUM NITRATE MATERIALS (HIGH NITROGEN CONTENT) SAFETY REGULATIONS 2003

Last year some 32mt of coal were produced in the UK with over 15mt being produced from surface mines (opencast). Surface mines, along with the non-coal quarrying and mineral extraction industries are major uses of Industrial Grade Ammonium Nitrate and last year consumed some 25,000tonnes (15,000t in surface mines) of Ammonium Nitrate. The Ammonium Nitrate is used to produce over 160mt of surface mine overburden and over 70mt of primary rock annually in the UK.

We are concerned that no reference is made to this important use of Industrial Grade Ammonium Nitrate in the consultation and that no users of the same have been consulted.

Directive 87/94 EEC and the subsequent amendments are directives relating specifically to fertilisers. We would propose that Industrial Grade Ammonium Nitrate is not a Fertiliser and should be exempt from these regulations.

The storage and use of Ammonium Nitrate in surface mines and quarries is controlled under the Mines & Quarries Legislation, The Explosives Act, The Storage of Explosives Regulations and is licenced by Local Authorities, Police and the Health and Safety Inspectorate. Quantities of over 150t are not stored on these sites. If the intention is that Industrial Grade Ammonium Nitrate is not exempt then a much longer consultation and harmonisation of existing legislation is required.

The Directive Amendment, which has prompted the Consultation, is a draft and has not been adopted by the EU. It is therefore premature to bring in UK Legislation which at the end of the day must on form with EU Legislation and therefore could need further amendment at a later date.

The Regulatory Impact Assessment is fundamentally flawed. Surface mines and quarries require Industrial Grade Ammonium Nitrate to manufacture explosives and as previously stated the storage and use of this material and all explosives are covered by other regulations to which no reference is made.

If industrial Grade Ammonium Nitrate is to be classed as an explosive, then this will have significant costs for the Extractive Industries and also the Explosives Manufacturers in the UK. The costs of applying these regulations to Explosives Manufacturing would result in significant increases in raw materials cost and would considerably disadvantage the UK manufacturers competing in the European Market.

The costs of applying these regulations to surface mines and quarries would also be excessive and could lead to a ten fold increase in raw material costs and would have very serious competition issues in industries which cannot pass on such increases to customers because of international competition. This is particularly the case for coal which competes on the on the international market.

In conclusion we would reiterate our position regarding the consultation.

1. The UK should not introduce legislation in advance of amendments to Directive 87/94EEC as this can only disadvantage the UK industries affected. The UK has an obligation to adopt EU Directives and early legislation could therefore require amendment.
2. Directive 87/94 EEC relates to Fertilisers. The Explosives and the Surface Mining and Quarries industries use Industrial Grade Ammonium Nitrate, the purchase storage and use of the same is covered by existing UK legislation, and should therefore be exempted from these proposed regulations. The exemption should allow the storage of up to 50t of Industrial Grader Ammonium Nitrate on site.
3. If Industrial Grade Ammonium Nitrate is classed as an explosive, this has very serious cost implications. Additionally there would need to be substantial amendments to the Explosive Acts, Quarries Legislation, Mines & Quarries Legislation, the licencing of explosives store, and the licences to mix Ammonium Nitrates on site.
   These costs would have major competition implications on the UK coal industry competing against international producers.
4. The storage of Industrial Grade Ammonium Nitrate at ports could be addressed by restricting the size of stockpiles.

We would be pleased to expand on any of the above and would be pleased to meet to discuss our industries concern and to agree a way forward without imposing undue costs on the coal extractive industries.

Brian J Rostron
Chairman-Health & Safety Committee
11.02.03