Bradken Limited

Bradken Limited is a manufacturing company operating mainly in Australia.

Bradken is listed on the Australian Stock Exchange ASX, with the security code BKN. The company is a component of the S&P/ASX 200 index.

Bradken is a manufacturer and supplier of consumable cast steel products and associated maintenance and refurbishment services to the Australian resources and rail freight industries. The Company's product range includes ground engaging tools, crawler systems, mill and crusher liners, freight wagon, rail bogies and engineered products.

The Bradken business was originally established in the 1920's. Between 1981 and 2000, the Bradken business was a division of Australian National Industries Limited (ANI), an under-performing industrial conglomerate. ANI was taken over by Smorgon Steel in 2000 and broken up. The Bradken casting business was sold to private equity and subsequently refloated on the ASX in August 2004. Since then, the company has performed strongly due to the demand for its products from the booming Australian mining industry.

Bradken has operations in Australia, New Zealand, the United Kingdom and China.

Bradken in South Australia - Kilburn Foundry

The building of the Bradken foundry in Kilburn, South Australia was completed in 1949 in a semi-developed residential area.

In 2007, the Kilburn steel foundry came under the public spotlight with Bradken's proposal for a AU$40 million expansion of the facility to allow for an increased output from the current 12,500 tonnes per annum to an anticipated 32,000 tonnes per annum (an approximate 250% increase). The proposed redevelopment allows for an upgrade of existing buildings and equipment, including a new melting furnace and expanded heat treatment. Curiously, the new electric arc furnace proposed by Bradken has a capacity of 45,000 tonne per year, considerably more than the stated anticipated output of 32,000 tonne.

The local government, the City of Port Adelaide Enfield has expressed concerns regarding the expansion of the foundry on the current site due to health and environmental reasons, however on the 26th January 2006 the City of Port Adelaide Enfield's standard Development Approval process was bypassed by the State Government of South Australia who granted Major Project status on the foundry proposal, effectively silencing the concerns of both local government and local citizens.

In February 2007, Bradken submitted their [http://www.planning.sa.gov.au/download.cfm?DownloadFile=ECC6796F-F203-0D46-A317EBFA5BFD4543 Public Environmental Report] in support of the proposed foundry expansion of which the City of Port Adelaide Enfield commissioned and has made public, an independent [http://www.portenf.sa.gov.au/webdata/resources/files/Independent_Review_-_GHD_Report.pdf review] by international professional services company, [http://www.ghd.com.au/ GHD] .

The report details "31 issues requiring further attention" many of which are classified as "high risk" and include "elevated concentrations of zinc & chromium have been detected in groundwater" and informs that "lifetime cancer risks could also increase by up to 50%".

According to the South Australian EPA's [http://www.epa.sa.gov.au/pdfs/sepguidepcd.pdf "Guidelines for Separation Distances (2000)"] , if a foundry of this nature was built adopting world's best practice the requirement would be a minimum residential separation radius of 300 metres. As of November 2007, approximately 1,000 residents reside in 328 homes sitting within a 300 metre radius of the foundry border.

As part of their drive to communicate the concerns of the community, the City of Port Adelaide Enfield produced a series of online videos, distributed via video sharing website, [http://www.youtube.com/BradkenResources YouTube] . The mayor of Port Adelaide Enfield, Gary Johanson states in a press release, dated 26th November 2007, “We are using the latest and smartest technology to get our message across about an age old problem – that of factories polluting the area in which they’re located,”

Following the interest raised by the use of such technology the City of Port Adelaide Enfield organised a further series of videos to be recorded on 12th December 2007 at the Kilburn Community Centre, giving the local residents a chance to vocalise their concerns to the world via YouTube. A number of residents questioned that if the proposed foundry expansion will improve noise and air emissions to an 'acceptable' level, is the foundry's current levels of emissions 'unacceptable'?

In addition to lobbying the State and Federal governments to assist with funding the relocation of the foundry, the City of Port Adelaide Enfield have proposed a new location for the foundry, a dedicated 'Cast Metals Precinct' in an industrial zoned area, free of residents and approximately 10 to 15 minutes from the foundry's current location. According to a press [http://www.portenf.sa.gov.au/webdata/resources/files/MR_RelocateBradkenFoundry_191007.pdf release] by the City of Port Adelaide Enfield, dated 19th October 2007, "In May 2007 the Council determined to provide a ‘rate holiday’ for Bradken for 5 years if it moves to the Cast Metals Precinct – this would be worth about $1 million over 5 years."

On the 13th December 2007 the Government of South Australia's Department of Premier and Cabinet posted a notice within the [http://www.governmentgazette.sa.gov.au Government Gazette] granting development approval for the foundry upgrade, subject to conditions.

According to the official [http://www.ministers.sa.gov.au/news.php?id=2563 website] of the Minister of Urban Development and Planning, Paul Holloway "A $40 million proposal to upgrade and expand the Bradken Resources Foundry at Kilburn has received provisional development authorisation today with conditions attached", referring to conditions stated in the Minister's [http://www.planning.sa.gov.au/download.cfm?DownloadFile=CC3BEA4F-F203-0D46-A6CF203113DCFF50 "Assessment Report - Bradken Foundry Upgrade & Expansion Proposal"]

Minister Holloway commented that the City of Port Adelaide Enfield had lead the residents of Kilburn on a "cruel hoax" by suggesting there was ever an opportunity for the foundry to be moved. The council replied in their media release response [http://www.portenf.sa.gov.au/webdata/resources/files/BradkenAppFromGovt_131207.pdf "Bradken approval will devastate community"] dated 13th December 2007, that "the cruel hoax in fact is this government's decision to allow this expansion and pretend everything will be okay for the people of Kilburn. It will not. The cruel hoax is in having a Cast Metals Precinct at Wingfield especially created to accommodate this sort of foundry - and then ignoring it."

References

* [http://www.asx.com.au/asx/research/CompanyInfoSearchResults.jsp?searchBy=asxCode&allinfo=on&asxCode=BKN Information about Bradken Ltd at ASX website]

* [http://www.bradken.com.au/default.aspx Bradken company website]

* [http://www.portenf.sa.gov.au/site/page.cfm?u=143&c=22634 City of Port Adelaide Enfield website ("Council seeks Federal & State funding to relocate the Bradken Foundry")]

* [http://www.youtube.com/BradkenResources YouTube page of Bradken videos]

* [http://www.planning.sa.gov.au/go/development-applications/major-development-proposals/ Planning SA Major Development Proposals]

* [http://dataserver.planning.sa.gov.au/publications/1111p.pdf Assessment of proposed Foundry Expansion by Bradken Resources Pty Ltd at Kilburn]