Inside private operator KIS Quarries’ bid to lease Blakebrook Quarry in Lismore

Lismore City Council has been approached with a bid to privatise Blakebrook Quarry – and the devil is in the detail. Here’s what we know.

Lismore City Council has been approached with a bid to privatise Blakebrook Quarry and could hand over a fleet of trucks and all equipment to a private operator.

Lismore City Council has been approached with a bid to privatise Blakebrook Quarry and could hand over a fleet of trucks and all equipment to a private operator.

The mine is considered a state significant asset and if privatised the council would have to buy back asphalt to repair flood affected roads at market value – with a nine per cent discount – rather than essentially free of charge.

However, the quarry has been running at an operating loss, with council recording a total cash loss of $4.87 million over the five years to 2020/21 – a major selling point for privatising the quarry.

The unsolicited proposal regarding Blakebrook Quarry has been made by KIS Quarries – the same company Peterson Quarry in Coraki was leased to by neighbouring Richmond Valley Council.

Lismore City Council.

KIS would lease the quarry potentially for the rest of its operational life if the proposal gets the tick, a leaked council document has revealed.

If Lismore City Council’s gear was handed to the private operator it could also be used for Peterson Quarry operations.

Richmond Valley Council leased Peterson Quarry to private operator KIS while John Walker was chief executive. He is now the Lismore council’s acting general manager.

Mr Walker said the decision to lease Peterson Quarry to KIS was made by councillors alone.

John Walker Lismore Council. Picture: Danielle Smith.

There is no suggestion Mr Walker had any involvement in the unsolicited approach made by KIS to the Lismore City Council.

Peterson’s Quarry, near Coraki, is on the border of the Lismore local government area and is a critical element of KIS’s bid. The operator is leaning on the operations at Peterson Quarry as leverage to seal the deal.

KIS said in the proposal: “KIS Quarries is not aware of any conflict of interest that would preclude this arrangement form being entered into.”

The entering of any potential agreement with KIS would be the decision of Lismore councillors, not the general manager.

A view over Blakebrook Quarry.

An Office of Local Government spokesperson said all council staff, including general managers, must disclose potential conflicts of interest via a written returns of interests completed on an annual basis.

“The question of whether a council staff member, including a general manager, has a conflict of interest would be a matter for the individual staff member to determine in line with the Council’s code of conduct,” the spokesperson said.

Lismore City Council has not yet put the potential lease of the quarry to competitive tender, nor has there been an expression of interest process.

The OLG spokesperson said the council has a policy enabling it to consider unsolicited proposals.

Lismore City Council, back row: Peter Colby, Big Rob, Andrew Bing, Vanessa Ekins, Andrew Gordon and Adam Guise. Front row: Elly Bird, Jeri Hall, Steve Krieg, Electra Jensen and Darlene Cook.

“Councils have specific exemptions from the requirement to tender, including in relation to the purchase, sale, lease, or licensing of land,” the spokesperson said.

Mr Walker said councillors have yet to consider the evaluation on the KIS proposal to lease Blakebrook Quarry, and whether it would be better to go to an open tender.

“All unsolicited proposals must be ticked off by councillors before they can be evaluated. Once the evaluation is complete, it must go back to councillors for consideration,” he said.

The proposed lease was originally going to be in place until 2039, but during a confidential meeting council discussed the lease being extended for the lifetime of the quarry.

About 300,000 tonnes of rock can be pulled from the quarry annually and the council would receive $600,000 in revenue, KIS estimated in its proposal.