[+] Quarry Fast Track No Solid Solution to Vic Housing Crisis

A scheme to boost the number of quarries being approved in Victoria will do little of significance to alleviate the state’s housing crisis, according to an industry insider. Victoria’s Allan Labor Government last year established the Resources Victoria Approvals Coordination (RVAC) unit to expedite approval processes across the state including giving the green light to new quarries close to areas in demand. Energy and resources minister Lily D ’ Ambrosio said at the time that an increase in approvals was a win-win for everyone. “ Improvements to regulatory processes and approvals are helping deliver more rock, sand and gravel while ensuring the right safeguards are in place to protect the environment and communities,” she said. According to state data, each tonne of quarry material currently being produced will be matched by four new tonnes thanks to new quarry sites now earmarked for development, leading to price reductions. More than 300-million tonnes of new quarry resources are in the pipeline for approval—around four times more than the expected demand this year. ▲ Fulton Hogan’s quarry at Tynong in Victoria’s Gippsland is 66km south-east of the Melbourne CBD. Victoria ’ s quarry sector delivered a record annual production of 73.6 million tonnes of rock, sand and gravel in the 2022-2023 financial year. As a result, quarry production increased by more than 14 per cent over the past three years, according to government figures. But Altus Group Asia Pacific president of cost and project management Niall McSweeney says that while the Allan Government’s announcement is a step in the right direction, it’s only one piece to unlocking the housing affordability puzzle. “What they’re doing is good, but what they really need to do is make sure it’s actually going to be a success by ensuring they have the associated infrastructure in place,” he says. “It’s no good opening up a new quarry if you can’t actually get to it or it’s difficult to get to because councils or communities don’t want heavy vehicles on their roads.” McSweeney says that an increased supply of raw materials in regions of need would inevitably lead to some savings. “By making this move it will reduce the amount of transport costs in relation to some construction. “Ultimately, you could argue that will be a cost saving. It’s a positive in the sense that, even though they’re digging more holes in the ground, they’re reducing the amount of haulage and time on the road and that’s reducing the carbon footprint.” ▲ Getting the material out is one thing, says McSweeney, getting it where it is needed is another. While governments are addressing the raw material supply issue, McSweeney says he has his fingers crossed that the big picture has been sufficiently considered. “Please make sure it’s a success by enabling access to it and please make sure it’s a success by enabling those initial works required to get a quarry opened,” he tells The Urban Developer . “It’s no different to a mine—there are a lot of things you have to do upfront. It’s not just a question of sending out 20 excavators and digging holes in the ground. “It’s a lot more complicated than that.” And although he agrees there are positives in the announcement, he said the link to cheaper housing is tenuous. “The big consumers of quarry products are basically roads, rail and other major linear infrastructure,” McSweeney says. ▲ Infrastructure is by far the biggest customer for quarried material. “It’s quite clever that they’ve tried to link this idea to what they see as the important political issue of the moment—housing. “It’s not really going to be that influential in relation to housing, but it will be in relation to the infrastructure around new housing. “Will it make a material change to the end price of your house? Not really. “Having said that, I do believe it should help stabilise prices.” Victorian Minister for Transport Infrastructure Danny Pearson says the rise in quarry approvals is all part of the state’s $100-million end goal. “Our investments in improving quarrying regulation in Victoria is delivering big benefits for our Big Build,” he says. A Victorian Government initiative, Big Build promises to inject more than 180 new rail and road projects as well as create more than 20,000 jobs. As well as opening new quarry sites, the Allan Government announced an Earth Resources Regulator is approving more material for development year-on-year so quarries can expand to meet demand as infrastructure is built and upgraded. As this financial year ends, 26 Work Plan applications, variations and updates have been approved, compared to 18 the previous year. Holcim Warrnambool recently gained approval to extend the life of its quarry, ensuring the supply of materials to build wind farms in Victoria ’ s south-west. More than 1250 tonnes of quarry material is needed to construct every wind turbine base. Boral Montrose and Fulton Hogan quarry, Tynong, have also benefited from quarry expansion approvals this year, according to the state. The Montrose quarry is a key supplier for the new Boral Batching Plant at Bulleen, which will produce the equivalent of 260 Olympic-sized swimming pools full of concrete for Melbourne’s North-East Link. You are currently experiencing The Urban Developer Plus (TUD+), our premium membership for property professionals. Click here to learn more.

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Kirsten Craze
Sun 16 Jun 24

[+] Quarry Fast Track No Solid Solution to Vic Housing Crisis

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ExclusiveKirsten CrazeSun 16 Jun 24

[+] Quarry Fast Track No Solid Solution to Vic Housing Crisis

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