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Construction industry warns costs will rise as southern Tasmania runs out of concrete sand

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Construction industry warns costs will rise as southern Tasmania runs out of concrete sand. Image / Stock

The construction industry is warning of rising costs and supply chain strain after a government report confirmed southern Tasmania has all but run out of sand suitable for making concrete.

Cement Concrete and Aggregates Australia said the Mineral Resources Tasmania report validated urgent concerns about the state’s construction supply chain.

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Concrete producers will now need to haul sand from the north and north-east of the state, with transport distances increasing from 35 kilometres to more than 300 kilometres.

CCAA chief executive Michael Kilgariff said the situation demanded immediate government action.

“Concrete sand is essential to every home, road and piece of public infrastructure in the state,” he said.

“MRT’s report highlights both the significance of this resource and the growing pressures on supply.”

The industry group is pushing for streamlined quarry approvals, faster exploration licensing and stronger land-use protections for sand resources.

Kilgariff warned inaction would have wide-ranging consequences.

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“Without reform, Tasmania risks increased construction costs, uncertainty for industry investment and a growing reliance on transporting sand from the north, adding price pressures, emissions and road impacts,” he said.

Coarse sharp sand is essential for concrete manufacturing and cannot be easily substituted.

The CCAA said it had already flagged the supply issue in its policy priorities document and would work with government to fast-track reforms.

The group represents producers of most of Australia’s cement, concrete and aggregates.

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Minister Eric Abetz commented on the release of the report last week.

“This report has released the information needed for more sand resources to be identified in southern Tasmania,” he said.​​​​​​​​​​​​​​​​

“This is a pre-emptive action to ensure industry understands the opportunities at hand and to future-proof sand supply in the state.”

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