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Police investigating how Powergel explosives ended up in Sydney caravan with antisemitic material

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In short:

Powergel explosives and antisemitic material were found in a caravan in Dural on January 19.

The explosive is used widely in the coal mining industry for underground tunnelling and blasting.

An expert says Powergel cannot be detonated without a detonator.

NSW Police are investigating how explosives used to blast underground tunnels and quarries were found in a caravan parked in a quiet residential Sydney suburb in mid-January.

Police said the Powergel explosives were found along with antisemitic material in Dural on January 19 and had the potential to cause a "mass casualty event".

NSW Police Commissioner Karen Webb said on Thursday the explosives had an estimated blast zone of 40 metres, were likely stolen from a mining site and were not found with a detonator.

The owner of the caravan is already in custody after being charged with separate offences.

What is a Powergel explosive?

Powergel is the name of an explosives brand manufactured by a range of companies including Orica, an Australian-listed ASX company that is one of the world's largest explosives manufacturers.

It's an emulsion-based explosive with a consistency of aioli that contains ammonium nitrate and becomes active when mixed with oil.

In packaged form, the product looks like salami and is grey in colour, according to the Orica website.

An Orica spokesperson said that the company "do not yet know if Orica's products were linked to this operation".

"Orica will fully collaborate with the authorities and assist with its investigation," the spokesperson said.

Powergel is used widely in the coal mining industry for underground tunnelling and blasting.

An image of a cylinder package with labels on it that read 'Powergel Buster' and 'Danger Explosive'.

An Orica spokesperson said that the company doesn't know if their products were linked to the police operation, but it can be packaged like this. (Supplied: Orica)

It's considered to be a safer alternative to other explosives due to its stability and water-resistant qualities.

"It's a package explosive that we see used in more niche applications and underground mining where it's not suitable to use bulk explosives," said associate professor in chemical engineering at the University of Melbourne, Gabriel da Silva.

According to the Orica website, Powergel has a shelf life of about 12 months and must be stored in highly-secured magazines per SafeWork NSW standards.

"There's a whole licensing regime that has to be undertaken … there are police checks required for the use of that," senior lecturer at UNSW's School of Mining Engineering
Duncan Chalmers said.

"Mining sites have hi-res cameras and the security around a magazine is much better than 20 or 30 years ago."

A sign on a fence which reads 'Warning, mining operation trespassers will be prosecuted'.

Police say the explosives were likely stolen from a mining site. (ABC News: Romy Stephens)

Mr Chalmers said the product was previously manufactured by Orica in Kalgoorlie in Western Australia, but the company had since moved its production overseas to India.

Products are now believed to be imported from overseas.

Authorities are liaising with explosive manufacturers to try to identify where the supply came from, but Mr Chalmers who has worked in the mining industry since 1976, said one theory is that the explosives could have been stolen several years ago.

He pointed out that labelled Powergel products were not currently used by major mining companies.

"It's not currently being used, it's been superseded by another explosive," he said.

"If it's Powergel, it could have been old stock and if it has been obtained illegally, then I would say it's been obtained 10 years ago."

Calls for better security

The news of the discovery of the explosives-laden caravan leaked out to the media on Wednesday which police said compromised what was meant to be a clandestine investigation.

Dr de Silva said Powergel could not be detonated without a detonator or an understanding of how the explosives work.

"I'm really shocked that this has turned up,"
he said.

"We have issues with our management of dangerous chemicals and dangerous goods in Australia.

"Year on year we see significant incidents with illegally stored chemicals or workplace chemical incidents. I don't think it's been adequately dealt with by either side of politics."