McCallum Bros Ordered to Pay Half a Million Dollars in Costs for Failed Pākiri Beach Sand Mining Case in New Zealand

A sand mining company, McCallum Bros, has been ordered to pay $500,000 in court costs to community groups who opposed its plans to mine near Pākiri beach north of Auckland. This comes after the company lost an Environment Court case in April.

Background

• McCallum Bros was seeking to take up to two million cubic metres of sand from the area.
• The court found that McCallum Bros had previously breached conditions of its resource consent by digging deep trenches in the seabed.
• The company’s attempt to gain consent for continued mining had been a “horrendous” process, taking more than seven years and costing the business significantly.

Court Decision

The court’s cost decision noted that what stood out in the case was the late attempt to remove a trust from the case. McCallum Bros has not commented on the cost decision, but the company’s CEO had previously spoken about the court process in select committee hearings for the Fast-track Approvals Bill.

Current Status

Until the company’s appeal to the High Court is resolved, it is operating under a temporary consent with the agreement of parties involved in the case. There have been breaches of the temporary arrangement, with more trawls taking place than allowed.

Fast-track Approvals Bill

• The company had applied for the consent to be included in the proposed fast-track legislation, which could allow projects rejected by courts to proceed.
• Another McCallum Bros project seeking to mine up to 8 million cubic metres of sand from Bream Bay, further up the coast from Pākiri, has been greenlit for fast-track consideration.

Impact on Pakiri Beach

Pākiri beach is about an hour’s drive north of Auckland. There have been concerns about the potential impact of sand mining on the local environment and community.

The community groups that opposed the mining plans have welcomed the court decision, viewing it as a victory for environmental protection and community rights in New Zealand.

Implications

• This case highlights the challenges and costs associated with obtaining approval for resource extraction projects under the current Resource Management Act.
• It also raises questions about the proposed Fast-track Approvals Bill, which could potentially override court decisions in favor of business interests.

Conclusion

The court decision against McCallum Bros for their failed Pākiri Beach sand mining project carries significant implications for the company, the local community, and New Zealand’s resource management laws. The case underscores the need for careful consideration of environmental and community impacts when making decisions about resource extraction projects.

References

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