CSR Reinforces Rosehill Site Procedures Following 2006 Chemical Spill Investigation

CSR today announced the completion of an extensive 18-month review in to the events surrounding an incident on 15 July, 2006, where a resin-like hydrocarbon/polymer substance spilled into the Parramatta River.

Although the review could not identify the cause of the spill for certain, CSR Building Products Limited today entered a plea of guilty to charges relating to the incident brought in July last year in the Land andEnvironment Court by the NSW Department of Environment and Climate Change inJuly 2007.

“CSR has decided to enter a plea of guilty to the charges, recognising that we may have been responsible for the incident. We have further reviewed our containment procedures and are confident they are effective,” CSR General Counsel &Company Secretary, Mr Chris Bertuch, said today.

In mid-July 2006 CSR had a spill of a small amount of a substance similar to that found in the Parramatta River.“We believed all the material was contained on site, however, as a prudent measure, CSR immediately reported the spill to the EPA,” said Mr Bertuch.

The spilled material, used in the coating of roof tiles, floats on water and almost immediately coagulates. Thematerial was recovered and there appears to be no long term damage to the riveror any marine life.

“We have fully investigated the incident and have cooperated with theDepartment at all times. We believe the spill must have resulted from an isolated human error, rather than any inherent problem with our procedures. We sincerely regret that it happened and reaffirm our strong commitment to the environment,” Mr Bertuch said.

As a consequence of this event, CSR has reinforced its standard operating procedures to ensure all chemicals used on site are stored and handled in accordance with those procedures. CSR has also reinforced training in the event of a spill for all factory floor employees.