PROJECT

Projects

Environmental & Social Review Summary

Project Number

8168

Company Name

Fertilizantes Fosfatado S.A.

Date ESRS Disclosed

Feb 5, 2010

Country

Brazil

Region

Latin America and the Caribbean

Last Updated Date

Dec 31, 2016

Environmental Category

B - Limited

Status

Completed

Previous Events

Approved : May 29, 1998
Signed : Jun 25, 1999
Invested : Aug 13, 1999

Sector

Phosphatic Fertilizer

Industry

Manufacturing

Department

Regional Industry MAS LAC & EUR

Project Description

3

3
Environmental Review Summary (ERS)

Project Name Brazil: Fosfertil

Region South America

Sector Manufacturing

Project No. 008168
March 26, 1998


1. This project will expand the production of Triple Superphosphate (TSP) and Mono-Amonium Phosphate (MAP) by 21% and 25% respectively. The project involves (i) installation of a double absorption sulfuric acid unit to expand sulfuric acid production; (ii) revamping of one of the two phosphoric acid units to increase production; (iii) installation of a turbo generator to improve energy efficiency, and (iv) construction of additional sulfur melting and filtration capacity and the acquisition of related equipment including a raw water pump and treatment unit and a boiler. The project will upgrade Fosfertil’s facility at Uberaba in the state of Minas Gerais. In addition, the sponsor will change the ammonium nitrate granulation process to a prilling tower at its Cubatão facility located in São Paulo State (SP), and will expand its port terminal facility in Santos (SP).

2. This is a category B project according to IFC’s environmental review procedure because specific impacts may result which can be avoided or mitigated by adhering to generally recognized performance standards, guidelines or design criteria. The review of this project consisted of appraising technical and environmental information submitted by the project sponsor. The following potential environmental, health and safety impacts of the project were analyzed:

· air emissions;
· liquid effluents;
· solid waste disposal;
· storage and materials handling;
· spill and fire prevention;
· contingency and emergency response plans; and
· general employee health and safety.

The sponsor has presented plans to address these issues and demonstrate that the proposed project will comply with applicable governmental and World Bank requirements. The information provided about how these potential impacts are addressed in the development of the project is summarized in the paragraphs that follow.

3. A demister will control the sulfur dioxide and sulfur trioxide emissions from the sulfuric acid plan, which has 99.7 conversion efficiency. The air emissions from the phosphoric acid production process will be controlled with a venturi system and a scrubbing tower. The emissions from the prilled ammonium nitrate facility will be significantly reduced since the prilling air will be recirculated after the particulates are removed by a baghouse and a scrubber. All process air emissions will comply with World Bank guidelines.

4. The liquid effluents from the processes at Cubatao and Uberaba will be treated before being discharged. The Uberaba industrial effluents are treated in two neutralization stages. The neutralized effluents are sent to a settling pond prior to being released to the Grande River. Each pond system is provided with a mesh of piezometers and inspections pits to monitor groundwater concentrations. Ammonia is recovered from the Cubatao industrial effluents prior to sending the effluents to the biological treatment plant. The domestic waters from both sites will be biologically treated before being discharged. The oil-contaminated stormwaters at both locations are treated in oil separators before being discharged. Domestic waters at the terminal are biologically treated as needed before being discharged. The sludges generated in the biological treatment plant will be used as organic fertilizer within the project’s property.

5. The sponsor will appropriately dispose of the residues generated during the sulfur-melting step. The discarded vanadium catalyst is collected and appropriately disposed by the supplier. A portion of the gypsum generated as a residue in the phosphoric acid plant will continue being sold to the agricultural and cement industries in the area. The gypsum not sold will continue to be disposed by the sponsor in a lined gypsum pile to avoid leakage to the groundwater. Two years ago, the sponsor began a revegetation program on the gypsum pile. The revegetation schedule will be submitted by the sponsor to IFC. The domestic solid residues will be disposed in a landfill approved by the local authorities.

6. The chemicals and fuel storage tanks have secondary containment to prevent soil contamination as a result of spills and the sulfuric acid storage area has a fire prevention system in place in compliance with both the local regulations and World Bank guidelines.

7. The working areas are periodically monitored to determine noise levels. Areas with noise levels greater than 85 dBA are clearly identified and require obligatory use of personal protective equipment (PPE). Noise sources are evaluated and mitigation actions are implemented.

8. Fosfertil has established strict fire and explosion safety and occupational health and safety programs complying with governmental standards and World Bank guidelines. Fire extinguishers and fire hydrants have been installed around the facility and Fosfertil has a specialized fire brigade available at all times. The sponsor ensures there will be water supply available at all times for fire protection activities. Ammonia handling and loading operations at the Port Terminal are carefully monitored and have emergency control systems in place to avoid potential leaks. Urea loading and handling operations have dust collectors and water sprayers to release dust emissions. The sponsor will install a refrigerated warehouse in the prilled ammonium nitrate plant to reduce both fire and explosion risks.

9. All Fosfertil plants have emergency response plans for accidental gas releases, fire and explosions. The plans include specific actions and responsibilities, operational action plans, instructions for the control of emergencies, inter-relationship with other plants and official agencies. Training and drills, evacuation measures and communication mechanisms with the potential affected communities and local authorities. The plan also includes a Regional Emergency and Contingency Plan developed for the Cubatao, and Uberaba areas.

10. The sponsor has a corporate environmental and safety prevention management to oversee all safety and environmental matters at all facilities. Employees are provided with and required to use appropriate (PPE) including breathing masks, eye protection lenses, gloves, noise protection equipment, gas detectors and appropriate clothing to reduce exposure to hazardous chemicals. Employees are trained with regard to plant safety rules, accident prevention, hazards of the workplace, spill prevention, fire and explosion safety, emergency response, and use of (PPE).

11. Fosfertil has an environmental management plan in place that includes environmental supervision and follow-up, and monitoring program. The supervision includes systematic inspections to evaluate project impacts and determine the appropriateness of the mitigation actions and the monitoring program. The sponsor has designated an environmental supervisor to be in charge of this program.

12. Based on its review of available information regarding potential environmental impacts and proposed mitigation measures, IFC concludes that the proposed project is being designed to meet Government of Brazil requirements, and World Bank policies, and environmental, health and safety guidelines.

13. IFC will monitor Fosfertil’s compliance with World Bank policies and guidelines during the life of the project by evaluating the environmental performance reports submitted annually, in conjunction with the annual financial report, to IFC by the sponsor and by conducting periodic site reviews during project supervision.





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March 27, 1998 4:12 PM

Environmental and Social Mitigation Measures

Broad Community Support