Critical sand shortage threatens to drive up cost of big projects

Tasmania has exhausted its concrete-grade sand supply, forcing costly long-distance transport that could blow out the budget for the controversial AFL stadium project.

Sand mine.

A critical shortage of sand used in concrete manufacturing has raised concerns about cost escalations for the proposed Macquarie Point stadium and other major infrastructure projects.

A study of the sand inventory of southeastern Tasmania produced by Mineral Resources Tasmania notes that two of five local quarries are closing, and the others don’t produce the right type of sand.

“As of 2025, South-East Tasmania has effectively exhausted its available supply of natural coarse sharp sand suitable for concrete manufacture,” the report says.

“This will likely result in price increases for sand use for concrete manufacture.

“The transportation of sand is currently costing approximately $0.20-$0.25 per tonne per kilometre.

“The distance to transport sand to the Hobart CBD will increase from 35km to over 300km as coarse sand supplies transition from South Arm to Northeast Tasmania.”

Independent Member for Nelson Meg Webb said the study raised questions about the cost of construction for the proposed Macquarie Point stadium.

“This sand inventory report, undertaken by a state government department, basically tells us that we have run out of concrete suitable coarse-grain sand in South-East Tasmania,” she said.

“This lack of suitable coarse sand has critical consequences for the AFL-demanded stadium.

“It has now become even more expensive, as that sand will now need to be brought in from somewhere else.”

Minister for Macquarie Point Urban Renewal, Eric Abetz rejected Ms Webb’s claims.

“This latest scare campaign from stadium opponents should come as no surprise,” he said.

“This report has released the information needed for more sand resources to be identified in southern Tasmania.

“This is a pre-emptive action to ensure industry understands the opportunities at hand and to future-proof sand supply in the state.”

Member for Franklin Peter George said the timing of the news was concerning.

“It’s deeply disturbing to learn that southeast Tasmania has run out of sand for concrete, threatening substantially increased costs of building the Macquarie Point stadium,” he said.

“In yet another example of how this government tries to bury bad news, a government geological report warning of the shortage and resulting price increases appears to have been withheld to avoid proper scrutiny during Budget Estimates when its impact on the stadium would have been highlighted.”

Originally published as Critical sand shortage threatens to drive up cost of big projects