Presentation on theme: "We are Still In the Stone Age: How Are You Getting On?"— Presentation transcript:
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
W Where are they used ? Roading Drainage Concrete and Cement Fill Civil Engineering Asphalt and sealing chip Agriculture Plaster Board
W Sub-grade stabilization Sub-base Base course Lime or Cement Gap 65 AP 40 Asphalt or chip seal surfacings Storm Water drainage A British Standard NZ Road
W 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 Economies of Scale
W We are still in the Stone Age: But What’s Changed? Productivity in Winning Rock
W We are still in the Stone Age: What’s Changed ? Productivity In Processing
W We Are Still in the Stone Age: What’s Changed ? Productivity In Transport
W We are still in the Stone Age: But What’s Changed? What it’s used for and how much AggregateVolume 2013 (T) Value $MNZ) Rock, etc. for building 8,044,034113.6 Rock etc. Roading19,947,982224.3 Sand1,203 12526.5 Reclamation471,1503.9 Lime for Agriculture1.419.34032.87 Lime for Industry778,01532.187 Lime for Cement1,84,282NA Source: NZP&M
W 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”. 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 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) Permitted reserves (Million Tonnes) Compared to 50 year demand (%) 12.0474.06734
W We are still in the Stone Age: What are others doing? UK Detailed mapping of each County. “Nirvana” but expensive.
W 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 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?”
W 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 with existing mining (quarrying) operations to discover upcoming “interface” issues Potential presence of a mine (quarry) to be available to Potential purchasers (anti reverse sensitivity).
W 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 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.
W 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 Industry requires more certainty on permits- currently 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?
W 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 – pre logging trucks and Dairy tankers 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 They are still in the Stone Age: What are they doing?
W 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 on their 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.
W 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 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 ).
W W We are still in the Stone Age: How are you getting on? Thank you for your attention Questions?