The future of Sunshine Coast Council’s quarries has been determined, amid the closure of its asphalt plant and strong competition within the industry.
Earlier this year, council officers initiated a strategic review of the operation of the quarries to help decide its future operating model and budget deliberations.
Sunshine Coast councillors decided the fate of the council-owned Image Flat and Dulong quarry business and operating sites at the last ordinary council meeting on December 8, resolving to lease the quarry sites to a commercial operator by June 30.
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Council’s Image Flat Quarry has been closed to external clients and industry providers since July 24, resulting in a temporary closure of sales to external customers for six months.
A council report said: “The council is currently operating the two quarries. Products from Image Flat Quarry and Dulong Quarry sites have historically been used within council projects and sold to external suppliers and contractors.
“An asphalt plant operated at Image Flat Quarry until the temporary closure of the plant in 2020.
“The quarry business has been impacted by the closure of the asphalt plant and is competing with other privately owned facilities with the capability of larger-scale vertical integration and capacity for capital investment.”
A Sunshine Coast Council spokesperson said a recent specialist review of the council’s quarry business and operating sites identified options and actions to improve the performance of this activity.
“As a result of the review and consideration of potential alternative operating options, it was proposed that the preferred solution would be to lease the quarry business and operating sites to a commercial operator to optimise the performance of these assets and their continuing contribution to the region as a sustainable source of supply of essential construction material,” they said.
“To find a commercial operator to manage the quarry business and sites, a two-stage procurement model will involve an initial expression of interest (EOI) to market, seeking proposals from suitably qualified and experienced operators.”
The council spokesperson said following the EOI, the organisation would undertake a closed tender process with the preferred tenders positively assessed against agreed criteria and in line with its procurement policy.
The closed tender may involve a single or multi-phase tender.
“The potential commercial operator will be managed by council under the terms and conditions of a contract, considering the community impacts and benefits,” the spokesperson said.
“Achieving the key benefits will provide a focus for the assessment process undertaken through the proposed EOI and subsequent closed tender process and the selection of the preferred operator.”
Key elements for potential operators include:
- Industry subject matter expertise in the operation of the facilities, improved performance of the core operations and services of the quarries.
- Sustainable development of the operating sites in accordance with land use development and environmental requirements, specifically ensuring the responsible management of any native species habitat and/or offsets.
- Support research and development of a local supply of recycled materials as a substitute for sand and aggregate in road materials, as well as innovative approaches to delivering sustainable products.
- Maintaining the land in council ownership which will enable council, at the end of the quarry’s useful economic life, to repurpose the sites in accordance with council’s policy objectives and the planning regime that exists at that time.
Whether the council would have any control over the quarry operations once leased, such as times trucks come and go and how often, was not determined by the council.
The EOI will be advertised on council’s website, the QTenders platform and may be advertised on other media platforms deemed useful under the circumstances.
The EOI will remain open for council to receive submissions closing no earlier than late April 2023.
During the meeting, councillors further sought to adopt an external management model for the future operations of council’s quarries business and operating sites from July 1, 2023.
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