Queensland Alumina Ltd. was fined $90,000 in the Gladstone Magistrates Court for an industrial incident at a Gladstone alumina refinery last year.

The Department of Environment and Resources Management (DERM) alleged that at 3 PM on January 15, 2009, a pressure-release valve was opened releasing vapours into caustic slurry unit 3 relief header; however, a split in the patch panel caused the vapours to be released into the air causing a steam vapour cloud releasing droplets for up to six kilometres to the south-west.

The droplets contain sodium hydroxide and four other minerals damaged 279 cars, which costs Queensland Alumina Ltd $428,000 for repairs.

No illness, injury or damage to the environment was reported.

In addition to the $90,000 fine, Queensland Alumina Ltd was fined $20,000 in court costs.

No conviction was recorded but the Department of Environment and Resource Management says it is pleased with the fine.

Queensland Alumina pleaded guilty to causing serious environmental harm.

Queensland Alumina managing director Phil Campbell said it was quite clearly a regrettable incident and said that the company has improved the management systems to ensure the release did not happen again.

Queensland Magistrate Damien Carroll said while the company was a good corporate citizen, some of its operations had the potential to be harmful and he acknowledged that the air quality in Gladstone was of concern to residents.

DERM's Reuben Carlos said the fine sends a message to the industry. "The maximum offence of this nature is over $800,000. They received a fine of close to $100,000, so it's not the most serious of offences but obviously any offence that gets a penalty of around $100,000 is viewed seriously," said Carlos.