We are Still In the Stone Age:
How Are You Getting On?
• What are aggregates ?
• Quarried rock
• Either from “Hard Rock” land
based Quarries
• Or From Alluvial Deposits
Where are they used ?
• Roading
• Drainage
• Concrete and
Cement
• Fill
• Civil Engineering W
• Asphalt and sealing
chip
• Agriculture
• Plaster Board
A British Standard NZ Road
Asphalt or chip seal
surfacings
Storm Water
drainage
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Base course
AP 40
Sub-base
Gap 65
Sub-grade stabilization
Lime or
Cement
We are still in the Stone Age: But What’s Changed ?
Productivity in Economies of Scale
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Pre European Maori Argillite Quarry ,
Nelson for tool making
Former Winstone Quarry, Lunn Ave
Auckland.
We are still in the Stone Age: But What’s Changed?
Productivity in Winning Rock
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We are still in the Stone Age: What’s Changed ?
Productivity In Processing
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We Are Still in the Stone Age: What’s Changed ?
Productivity In Transport
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We are still in the Stone Age: But What’s Changed?
What it’s used for and how much
Aggregate
Rock, etc. for
building
Volume
2013 (T)
Value $MNZ)
8,044,034
113.6
19,947,982
224.3
26 .5
Reclamation
1,203 125
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471,150
Lime for Agriculture
1.419.340
32.87
Lime for Industry
778,015
32.187
Lime for Cement
1,84,282
NA
Rock etc. Roading
Sand
3.9
Source: NZP&M
We are still in the Stone Age: What now?
• The encroachment of urban sprawl is probably the biggest issue our
Industry faces; not just in NZ but internationally
• The result is often reverse sensitivity issues, sometimes through
inadvertent planning decisions, with the consequent arrival of
“vociferous and unsympathetic neighbours”.
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• Consenting new resources is increasingly
difficult, massively expensive
and requires a long lead-time. Sometimes up to 10 years.
• Many countries are planning at a national level for their aggregate supplies
50 years forward. New Zealand needs to be thinking about aggregate
supplies in 2065, now!
We are still in the stone Age: What are others doing?
California
• Mapping of all quarries in
the state
• Analysis of their production
and forecast of their life time
• 4 study areas with less than
10 years to go
• Only one has more than
50 years reserves (out of 31)
50 year demand
(Million tons)
12.047
Permitted reserves
(Million Tonnes)
4.067
Compared to 50
year demand (%)
34
We are still in the Stone Age: What are others doing?
UK
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• Detailed mapping of each
County.
• “Nirvana” but expensive.
We are still in the Stone Age: What are others doing?
UK
• Major study into future of all minerals
recently published (July 2014).
• Call for a National Policy Statement on
Minerals by Central Govt.
• Serious decline in construction minerals
post GFC.
• Some areas deficient: others Ok but severe
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constraints
on access “problematic”
• Lack of investment in infrastructure by
successive Govts. – Housing shortage
forecast.
• “Will regulatory systems frustrate the delivery
of materials over the next 35 years?”
We are still in the Stone Age: What are others doing?
Australia
• Study by SA State Govt. published (July 2014).
30 year outlook.
• Planning to take a strategic approach to mineral
resources.
• Policy tools to mitigate “interface” areas
• Engage withWexisting mining (quarrying)
operations to discover upcoming “interface” issues
• Potential presence of a mine (quarry) to be
available to Potential purchasers (anti reverse
sensitivity).
We are still in the Stone Age: What are we doing?
• Two TA’s currently undertaking studies into their current and future
aggregate resources. Both have been facilitated by the AQA.
• One is predominantly “Hard Rock,” the other alluvial gravel.
• Led by an experienced, independent quarry person and a geologist.
• Studies to ascertain what their future demand may be, what drives it,
what their aggregate supply potential is, including quantities and
quality.
• What issues do they have to address to secure and enhance their
region’s Aggregate supply's in the future,
including engagement with
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Tangata whenua.
• Involvement with local quarry operators essential to ascertain their
perspectives and buy in.
• Both have different dynamics which require different solutions
• Both have similar constraints – particularly a diminishing population base,
and an aging infrastructure.
They are still in the Stone Age: What are They doing?
Hawkes Bay Regional Council
•
Mostly reliant on alluvial gravel. “Symbiotic” relationship between Council and
Extractors
•
Must continue to remove it to combat flood control. Can lead to disastrous
results if not properly managed.
•
Market demand declining
•
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Industry requires more certainty on permitscurrently annually
•
Otherwise move to land based resources
•
Environmental and Ecological Consideration: Excellent historic hydraulic records
•
Involvement of Tangeta whenua
They are still in the Stone Age: What are they doing?
Far North District Council
•
Mostly reliant on land based “Hard Rock”
•
Diminishing Population : diminishing rates base
•
Market demand (other than Council) sporadic
•
Largest proportion of unsealed roads in NZ
•
Existing Roads built in another era
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•
Distance of delivery – particularly for higher quality aggregates
•
Suitability of Aggregates closer to the their end use
•
Retirement of experienced roading engineers – local knowledge lost
We are still in the Stone Age: What are we doing?
• Working with Petroleum and Minerals to improve aggregate statistics.
• Collaborating on investigations into recycling to increase greater
adoption of recycled product in NZ.
• Continued contact with international “sister” organisations to obtain
“Guidance, council and advice” on international trends.
• Participation on various industry technical committees to ensure
aggregate supply is given fair hearing.
• Continuous improvement on Health and safety issues within our industry
• Encouragement of our members onWtheir environmental responsibilities
Via our annual “Mimico” awards and promulgation of our industry’s
achievements – that we are good neighbours.
• Establishing a higher profile with Central and Local Government
to ensure the importance of future aggregate supply is not overlooked
and encouraged.
We are still in the Stone Age: Some Modern Dynamics
• What Drives Demand?
• Population Growth – resulting in:
• Spend on Infrastructure by
- Central Government
- Municipal
- Commercial
- Domestic
- Agriculture
• “Unplanned” events
We are still in the Stone Age: Some Industry Dynamics
• Aggregates are a low cost, high bulk density material
• Long Distance Cartage can dramatically effect the final delivered price:
- doubling it or worse.
• In Europe the average delivery by rail is now 230km
• Some Areas in NZ are now short of aggregates based on future demand
forecasts.
• Auckland will possibly need 12 – 14 million tonnes if population forecasts
are accurate. Were “importing” 20% of their requirements prior to the GFC.
• Wellington used to have 17 quarries. Now down to 3.
We are still in the Stone Age: How are you getting On ?
• Like our ancestors we are still reliant on abundant sources of Aggregates.
• But their importance to society is almost universally under estimated.
• Like all minerals, aggregates must be quarried from where they lie: where
they lie is not always convenient.
• They are a finite resource. Much is already sterilised or facing
reverse sensitivity
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• Though recycling can play a part, there is no known substitute and none
on the horizon.
• “The importance of planning for ongoing access to our basic materials is
something our councils must face”.
(Emeritus Professor of Geology Philippa Black, School of Environment, University of Auckland).
We are still in the Stone Age: How are you getting on?
• Thank you for your attention
• Questions?
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