Northland sand mining plan under fire for unclear economic benefits

Around 1500 people protested against McCallum Bro's Bream Bay sand mining proposal in January. Photo / Nigel Yellowlees

A leading economist says the economic benefits from a Northland sand mining proposal are so unclear, he questions how the project was included in fast-track legislation.

McCallum Brothers' Bream Bay sand extraction is one of 149 projects listed in the Fast-track Approvals Act, meaning it can apply directly to the Environmental Protection Authority for consent.

The company proposes to extract more than 8 million cubic metres of sand from the seabed over 35 years, a plan which has sparked protest from locals despite McCallum Bros saying any environmental concerns will be addressed.

Economist Hayden Green, who founded Axiom Economics, is questioning how the project was given a tick for fast-tracking when its initial economic assessment contains flaws and omissions.

But McCallum Bros said the high-level report is not complete and a more detailed assessment of economic effects is still to come, with the sand needed to create concrete.

Green, who lives in Bream Bay, said he decided to find out more about the proposed sand mining after reading about local protests.

But he started to question the benefits when he read the high-level assessment of economic effects, prepared by ME Consulting in May 2024 for McCallum Bros' fast-track application.

“In my opinion, the report provides no credible indication of the proposal’s likely economic impacts,” he said.

“I understand the sentiment and motivation behind this fast-track legislation and, in principle, I have no issues with businesses being given mining consents ... But there has to be actual benefits and it’s up to them to show that.”

The report compares the Bream Bay sand with sand extracted from Kaipara Harbour, saying the Kaipara sand is more expensive due to extra trucking and transport costs.

But Green said the report incorrectly calculates the trips Kaipara sand will have to make to get to concrete plants. It also does not consider other alternatives like land-based sand mining and manufactured sand.

Economist Hayden Green says the economic benefits of the proposed sand mining in Bream Bay have not been shown. Photo / Dawn Dutton

The report also does not explain how the trucking costs were worked out, nor show how the project would benefit Aucklanders or Northlanders at large, he said.

But McCallum Bros chief operating officer Shayne Elstob said ME Consulting’s report was high-level and he questioned Green’s experience in the concrete industry.

“The suggestion that their [ME Consulting’s] work is irrelevant or inaccurate is baseless, unfair and, in our view, unprofessional, especially considering an incomplete economics summary has been assessed.”

Kaipara Harbour sand was been considered as the most likely alternative due to its similar quality, proximity to Auckland, availability and economic cost, he said.

“Our understanding is that all other alternatives available or suggested come at a higher cost environmentally or economically.”

Endangered Species Foundation co-chair Tawera Nikau (right), presents the foundation's 14,000-signature petition to Green MP Hūhana Lyndon, with the support of Emma Giesen (left), Natalie Jessup and Stu Muir.

Alternatives, full details of transport costs and community benefits will be covered in a more detailed report, as part of 15 assessment of effects being completed by McCallum Bros, Elstob said.

These 15 reports, which cover all environmental aspects, will be used by the company when it applies for fast-track consent.

Regional Development Minister Shane Jones' office said it was not appropriate for him to comment on the economic analysis, given it will form part of the fast-track application.

But the Northland-based minister previously told the Northern Advocate that affordable sand was economically important because it is a key component in concrete, which drives the price of housing and infrastructure.

Jones said protests against the sand mining were “extremely unfortunate” and stop those who want to speak out in support of jobs and cheaper housing.

While there will be consultation with affected parties, including with tangata whenua, these groups will not get a right to veto these fast-track projects, he said.

Meanwhile, protests against the sand mining continue, with a boat protest planned for midday Sunday.

A petition of 14,000 signatures against the Bream Bay sand mining was presented by Tāngaro Tuia te Ora, Endangered Species Foundation to Green MP Hūhana Lyndon on the steps of Parliament last Wednesday.

Denise Piper is a news reporter for the Northern Advocate, focusing on health and business. She has more than 20 years in journalism and is passionate about covering stories that make a difference.