Dioxin emissions from MM Kembla's plant are unlikely to pose a health risk to the community, a NSW Health investigation has found.
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The assessment, released this week, determined emissions from the Port Kembla factory were unlikely to present any health risks to residents.
The health department was called in to investigate the plant in April after tests showed dioxin emissions were 172 times the acceptable limit.
The investigation, examining any potential health effects, found residents could have ingested dioxins through soil containing dust from the chimney, or by eating home-grown vegetables or eggs.
NSW Health has advised people in the area to wash any home-grown produce, including eggs, before eating it.
The report coincided with the latest test results from the plant, which showed the company's horizontal billet caster (HBC) now complied with limits for dioxin emissions.
NSW Environmental Protection Authority (EPA) Illawarra manager Peter Bloem said the results were a positive step.
"They show the plant can operate within limits where high quality copper is used," he said.
"The EPA has been working closely with MM [and] required [several] measures to be put in place before testing could be undertaken, including extensive upgrades to the operation and performance of pollution environmental controls associated with the initial breaches.
"Further tests will be required using other types of copper."
The EPA ordered the shutdown of the plant's caster in April after dioxin emissions were found to have exceeded the licence limit.
MM Kembla issued a statement last month saying it believed the cause of the high readings was the failure of the baghouse.
A baghouse is an air pollution control device that removes particulates from air or gas.
The plant will undertake further emission testing after operating the baghouse this week.
MM hopes to return to normal operation of the HBC next month.