New Extractive Industry Policy

A study by Mineral Resources Tasmania (MRT – Nov 2025) confirms the critical and immediate challenge of natural resource exhaustion facing the State.

The MRT report finds that as of 2025, the region has “effectively exhausted its available supply of natural coarse sharp sand suitable for concrete manufacture”

This is forcing concrete producers to rely more heavily on transported sand from the north and northeast of the State at distances increasing from 35 km to more than 300 km.

The Tasmanian Government has introduced new Extractive Industry policy within its new Tasmanian Planning Policies

A study of the sand inventory of southeastern Tasmania.pdf

Statement from Cement Concrete & Aggregates Australia

Key Facts:

• Tasmania’s new Planning Policies include a dedicated Extractive Industry policy designed to identify and protect strategic resource areas, prevent incompatible development near existing quarries, and safeguard supporting infrastructure.
• The cement, concrete and aggregates industry contributes over $338 million to Tasmania’s Gross State Product and supports 1,652 jobs, supplying materials essential for homes, hospitals, schools, roads, and renewable energy projects.
• CCAA warns that once a strategically important quarry resource is lost to incompatible development, it cannot be relocated, making long-term land use planning protections critical.
• CCAA is calling for a Tasmanian Heavy Construction Materials Plan to complement the new policies by identifying future resource demand, protecting significant quarry resources, and streamlining planning and approval pathways, noting particular concern over sand supply challenges in southeast Tasmania.
• CCAA also welcomed the establishment of Building Tasmania and the inclusion of Mineral Resources Tasmania within the new Economic Development function, viewing these reforms as an opportunity to strengthen long-term planning for the resources sector.

Cement Concrete & Aggregates Australia (CCAA) has welcomed the inclusion of new provisions within Tasmania’s Planning Policies that recognise the importance of identifying and protecting strategic extractive resources, existing quarry operations and the infrastructure that supports them.

The new Tasmanian Planning Policies include a dedicated Extractive Industry policy that seeks to identify and protect strategic resource areas, prevent incompatible development around existing extractive industries, support the long-term viability of quarry operations and safeguard the infrastructure needed to maintain the supply of essential construction materials.

CCAA Chief Executive Officer Michael Kilgariff said the new policy direction reflects the critical role locally sourced construction materials play in delivering Tasmania’s housing, infrastructure and renewable energy ambitions.

“The cement, concrete and aggregates industry contributes more than $338 million to Tasmania’s Gross State Product and supports 1,652 jobs, while supplying the materials needed to build homes, hospitals, schools, roads, renewable energy projects and other essential infrastructure,” he said.

“Protecting access to these resources through the planning system is fundamental to ensuring Tasmania can continue building the infrastructure and housing its communities need.”

“Construction materials can only be sourced where the resource exists. Once a strategically important quarry resource is lost to incompatible development, it cannot simply be relocated.

“The inclusion of a dedicated Extractive Industry policy is an important acknowledgement that protecting these resources must be a core consideration in long-term land use planning.”

Mr Kilgariff said the Planning Policies provide a strong strategic foundation, but further reform is needed to ensure the planning system delivers timely investment and project approvals.

“The next step is ensuring these policies are supported by a more efficient planning and approvals system that reduces unnecessary delays while maintaining appropriate environmental safeguards,” he said.

“Long approval timeframes create uncertainty for investment and ultimately increase the cost of delivering housing and infrastructure.”

CCAA continues to advocate for a Tasmanian Heavy Construction Materials Plan to complement the new Planning Policies by identifying future resource demand, protecting strategically significant quarry resources, improving freight and transport connections, and streamlining planning and approval pathways.

CCAA also welcomed the establishment of Building Tasmania to strengthen the State’s integrated approach to infrastructure delivery, together with the inclusion of Mineral Resources Tasmania within the new Economic Development function in the Department of Premier and Cabinet, recognising the critical role the resources sector plays in supporting Tasmania’s economic growth.

“A Heavy Construction Materials Plan would build on these important reforms by providing the long-term certainty needed to secure the supply of cement, concrete and aggregates for generations to come, particularly in light of the critical sand supply challenges recently identified in southeast Tasmania,” Mr Kilgariff said.

“Together with the establishment of Building Tasmania, these reforms provide an opportunity to strengthen long-term planning for the resources sector and ensure Tasmania has the construction materials needed to support future housing, infrastructure and economic growth. We look forward to working constructively with the Tasmanian Government to turn that opportunity into practical outcomes.”

About CCAA
CCAA is the voice of Australia’s heavy construction materials industry, an industry that contributes $20.7 billion to GDP and supports 112,970 jobs nationwide. CCAA members produce most of Australia’s cement, concrete and aggregates, which are essential to the nation’s building and construction sectors.

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