North Stradbroke Island - Sand Mining

Sand Mining

In 1949, Australian Consolidated Industries (ACI) commenced sand mining operations on North Stradbroke Island. Consolidated Rutile Limited (CRL) overtook these sand mining operations in 1966. In 1998, Iluka Resources Limited acquired majority interest in CRL. Australian minerals mining company Unimin Australia Limited acquired majority interest in 2009, and the company changed its name to Sibelco Australia in 2011.

Mining moved into the interior of the island in the late 1960s and increased in scale and size. As an alternative, development of the island for seaside residential use was mooted and in 1970 a bridge from the mainland via Russell Island was under serious consideration by the Queensland government. The Queensland Government also proposed a large scale redevelopment of the island in the mid 1980's which would have seen the population of the island increase tenfold. This proposal was never followed through when the incumbent government lost office. There are several accounts from sand mining employees of unusual artifacts being found during dredging operations.

In 1991, the Australian Government and sand mining companies ACI and CRL attempted to reach an agreement on surrender of some or parts of mining lease tenements to form a national park. Half of North Stradbroke Island was to become a national park in return for a guarantee that mining could continue for the life of several mines in high-grade areas 1. The agreement was never signed by either of the mining companies nor the Government and has not been progressed to this day. Sibelco Australia operates three sand mining sites on the island - Enterprise, Yarraman and Vance. Mineral sands and silica sands at Vance mine, near Dunwich, are currently being mined from the surface. Rutile, zircon and ilmenite are dredged from the Yarraman Mine on the north of the island and the Enterprise Mine on the south of the island. Enterprise is the largest mine on the island and accounted for 60% of the island's production in 2011. In 2009, 500,000 tonnes of minerals were being produced by mining about 50 million tonnes of sand. Sibelco Australia produces 500,000 to 600,000 tonnes of sand annually (approximately one per cent of North Stradbroke Island's total sand). The minerals extracted are used mainly in glass production, but also in digital tablets such as iPads, paints, plastics, metals, cosmetics and biotechnological devices (such as prosthesis), both for domestic and international markets. A 2010 KPMG assessment found 95% of revenue from NSI sand mining stays in the Australian community.

In 2008, CRL received the Queensland Premier's Environment Protection Agency Sustainability Award for Resources industries for its rehabilitation processes. The award is given to a company that demonstrates leadership in environmental practices and commitment to progressive rehabilitation and long-term sustainability.

Economic modeling undertaken by Synergies Economic Consulting in 2010 indicates there are very strong linkages between sand mining and the rest of the NSI economy. The report found these linkages were significantly stronger than for other industries, such as tourism. The economic analysis revealed that current sand mining operatons on NSI create up to 44% of total economic activity. Sand mining accounts for 14% direct employment on NSI and 30% when including indirect employment (around 650 people in total). The mine's indigenous population - the Quandamooka people - make up 15% of all mine employees. Sand mining on NSI supports almost $100 million in wages and income for small businesses. According to Synergies Economic Consulting, approximately 40% of children in childcare and schools on NSI come from mining families.

According to the Stradbroke Island Management Organisation (an environmental watch-dog organisation) two-thirds of the island is covered by mining leases. In late 2009, CSR, which became a subsidiary of Unimin Australia, itself a subsidiary of Sibelco, after being purchased from Iluka Resources, was charged with illegal sand mining after it was alleged to have sold sand extracted from the island, to the building industry for the production of glass without the correct permit. The matter is currently before the Queensland Supreme Court and a decision is still pending. In another legal matter, the High Court ruled against Sibelco in June 2011 over a bid to sell sand to construction companies. Sibelco had lodged the appeal against the Redland City Council's 2008 decision to deny the sand mining company's application to sell 500,000 tonnes of sand to construction companies over the next 100 years.

In 2010, the State Government announced that sand mining on the island would be phased out by 2027. The announcement caused concern amongst residents as the island's economy is underpinned by sand mining. Plans to decommission mining were changed once again, when on 22 March 2011 the Queensland Premier Anna Bligh announced that the Enterprise Mine will now be forced to shut in 2019, eight years earlier than previously agreed. Yarraman would close in 2015 and Vance in 2025. The decision increased local concerns for the Island's economy. In January 2012, state opposition LNP leader Campbell Newman announced that if elected his party would allow sand mining on NSI to proceed up until 2027 as originally agreed upon.

According to Sibelco Australia, an independent poll in 2011 found 84% of Queenslanders support sand mining continuing to 2027 and do not want an early shut down of mining on NSI. A report released by Synergies Economic Consulting in 2010 predicts the early closure of sand mining on North Stradbroke Island would prompt a rise in the price of ferry transport services, electricity services and fuel for residents. It states total employment on the island would drop by 30%.

Under the State Government's Stradbroke Island Sustainability and Protection Act 2011, 80% of the island will become national park by 2026. The national park will be jointly managed by the Quandamooka people under the Indigenous Land Use Agreement. The State Government is planning to develop tourism opportunities by creating new walking tracks, camping grounds and recreational facilities. However, economic modeling undertaken by Synergies Economic Consulting states the growth in labour demand from tourism expansion is not expected to be rapid. This is because of an overall weakness in domestic tourism across Australia at present.