Disappearing dunes a sandy saga

ONE of the defining features of the small town of Lancelin is gradually disappearing.

Tall sand dunes previously greeted visitors as they drove into the tourist town 120 kilometres north of Perth, but they are barely visible after nearly 40 years of sand mining.

Aglime of Australia has extracted an estimated 6 million tonnes of limesand over that period.

It has nearly exhausted supplies in its mining lease at the southern end of the town and recently began operations on a second mining lease.

While abundant limesand deposits remain near Lancelin, the location of mining activity on the town’s doorstep – and its proximity to an off-road recreation area – has local residents and business owners concerned about the long-term impact.

Locals and visitors alike have long enjoyed four-wheel driving and motorbike riding on the dunes, while tour operators bring in thousands of visitors each year for sandboarding.

In tandem with the beaches and windsurfing, these attractions have made the town a popular destination.

The community concern led to a meeting last month that filled the town hall with more than 150 people.

Lancelin Chamber of Commerce and Industry president Mal Lobb is frustrated by the lack of clear information.

“If these sand dunes go, or we lose access, it will take huge amounts of money from the businesses in Lancelin,” Mr Lobb told Business News.

An added concern for locals is the potential impact on its water catchment, which sits partially underneath the dunes that are due to be mined.

“We’re bewildered as to why this would be allowed,” Mr Lobb said.

Aglime holds three mining leases covering 660 hectares adjacent to the town of Lacelin. 

Local market

Sand mining has been a growth industry because of the important role played by limesand in Western Australia’s Wheatbelt.

Farmers spread limesand on their paddocks to neutralise acidic soils and boost cropping yields.

The dunes at Lancelin contain high-grade limesand that is ideally suited both physically (very fine) and chemically as an agricultural lime.

One of the first companies to spot this opportunity was Bond Corporation, led by infamous Perth entrepreneur Alan Bond.

Its subsidiary Endeavour Resources claimed mining rights to the sand dunes at Lancelin in 1981.

Mining started in 1985, when regulators took a cautious approach to the new industry.

The Department of Conservation and Environment approved the mining of just 2,000 tonnes of sand over two years.

It added various conditions “to ensure that the aesthetic nature of the area was retained, and recreational activities were not interfered with.”

That was followed by a further approval in 1987, for the mining of no more than 20,000t over five years.

This was supported by the EPA as “this quantity of sand would represent only a minor proportion of the entire dune field.”

The business came under private ownership in 1989 after Bond Corp’s collapse but the operations continued unabated.

The ministerial approval was updated in 1992 to allow the extraction of up to 40,000t over five years.

There are no limits on the volume of sand the company can extract under its latest approval, which was granted in 2020 and runs for 21 years.

Aglime general manager Steve Carr said the demand for limesand had grown substantially over the years as the Department of Agriculture and farming consultants promoted its use.

Demand peaked at about 1.5 million tonnes in 2015 when many farmers were investing in repair and remediation of their fields.

Dr Carr said demand had since fallen to between 700,000t and 800,000t per year. Aglime’s annual production at Lancelin peaked at 500,000t but has since declined in line with the overall market to between 200,000t and 400,000t per year.

For locals, a key concern is how rapidly the mining extends north. Aglime is close to exhausting limesand supplies in mining lease M70/250 at the southern end of the town (see map).

It recently moved into M70/692 and anticipates this mining lease has sufficient reserves to last at least 25 years, substantially longer than its previous estimate of 15 years.

“We were highly conservative in our original resource estimations,” Dr Carr said.

This means the company will not move into its third mining lease – M70/249 – until at least the year 2048.

Crucially, the third mining lease encompasses the off-road recreation area.

Water supply

Another layer to this story concerns water supply.

The Water Corporation has a designated water reserve sitting largely underneath M70/692, which is Aglime’s current focus.

The Water Corp also has a borefield, or wellhead protection zone, adjacent to and slightly overlapping M70/692.

It has installed fences and signage to discourage drivers from accessing four-wheel-drive tracks near the borefield.

But while the locals face restrictions, the water catchment is potentially affected by two mining leases.

Aglime is able to mine above the subterranean water reserve but insists its mining does not have any impact.

The company also says it will not extract sand from the Water Corp’s wellhead protection zone.

A second business, Lime Industries, has applied for a mining lease (M70/994) that is situated within the Lancelin town site and largely overlaps the water protection zone.

The Department of Mines Industry Regulation and Safety told Business News this application “has been recommended for grant” but added that any proposal to mine the land would be subject to a formal environmental assessment process.

Lime Industries director Peter Menchetti said there was no intention to mine the area.

He said the application had been held by the company for several years and was being retained for strategic purposes.

Lime Industries, through its subsidiary Optima Lime, is a major supplier of limesand, with operations stretching from Boranup in the state’s south to Dongara in the north.

Its operations include a sand mine just south of Lancelin on a mining lease originally developed by Cockburn Cement in 1971.

While Cockburn Cement used the lime in its manufacturing operations, Optima has mined the area since 2008 to supply farmers.

The company has not disclosed production volumes, but it applied in 2018 for approval to screen up to 500,000t per annum from the Lancelin operation.

For locals trying to stay abreast of the industry, there is a third operation near Lancelin.

A local farmer has a very small sand mine near the northern end of the town, adjacent to the off-road recreation area.

It includes two loading ramps, which are sometimes confused with Aglime’s facilities.

Adding to the confusion, Aglime started its mining operations in the same area around 1985 but switched after two years to its mining lease near the southern end of the town.

This avoided the disruption caused by heavy trucks traveling along residential streets through the town.

Location, location

While Lancelin is the biggest source of limesand in WA, it is certainly not the only location.

For farmers, one of the most important aspects is the proximity of the limesand source to their farms throughout the Wheatbelt.

“It’s all to do with transport,” Dr Carr said.

“The more distance, the greater the cost.”

Lancelin is well-placed in this regard, as it is close to east-west roads that access the Wheatbelt.

It is also well-placed to serve the southern half of the state, as there are minimal limesand deposits on the coast south of Perth and almost nothing on the southern coast.

Dr Carr said there were additional limesand deposits up the west coast but in many cases they were subject to constraints.

For instance, the land immediately north of Lancelin is used as a bombing range by the Royal Australian Navy.

Deposits near Wedge Island and Cervantes are constrained by nature reserves and Nambung National Park, which is home to The Pinnacles.

Dr Carr said reducing or halting activity at Lancelin would lead to increased mining elsewhere.

“If you stop one, you put more pressure on other operations,” he said.

Farmers typically spread limesand in a brief 10-to-12-week window between harvesting and seeding.

Dr Carr said this was an added logistical challenge for the sector.

To facilitate more efficient distribution, grain handler CBH Group has established a handful of limesand stockpiles through the Wheatbelt.

Dr Carr said he was aware of alternative products, known as hydrated lime and liquid lime, used in sectors such as horticulture.

However, he believes these products are only effective in preventing issues particular to vegetables and do not have any significant capacity to reduce the acidity that limits broadacre crops.

Optima Lime takes a different view.

It has a focus on supplying value-added limes such as Agri-Cal and Hi-Cal, which are manufactured lime products.

Mr Menchetti said these products could provide greater effectiveness and more immediate benefits and required less volume than limesand.

Optima Lime has been marketing and using Hi-Cal for 20 years, while Agri-Cal is a second-generation blend with increasing sales.

Sitting amidst the competing interest groups is Deputy Premier and Tourism Minister Roger Cook, who said he was aware that Lancelin was a popular area for holiday makers and activities such as sandboarding and off-road vehicles.

“The state government recognises the importance of balancing the needs of the tourism, agricultural and mining industry, which has been operating in the region for the past 30 years,” he said.

“The government will work with local stakeholders to ensure Lancelin continues to meet the needs of the different industries.”