The recent announcement in the Autumn statement that the Government intends to invest a further &23 billion in the next five years is likely to lead to further increase in demand for building materials, and aggregates in particular. This will be on top of the growth in aggregate demand seen in the last three years which has seen consistent growth in volumes as the economy has climbed out of recession.

Last year saw sales increase by 4.2% for aggregates whilst volumes of ready-mixed concrete in Great Britain improved by 4%, compared with 2015, and a 4.6% increase for mortar. Asphalt sales remained broadly flat (+0.1%).   This is despite the growth in the use of recycled aggregates which has now reached almost 30% of the market.

At the same time mineral planning authorities have been consistently struggling to achieve their seven year land bank requirement under the NPPF for sand and gravel reserves. Many Counties have outdated mineral plans which are in the process of being reviewed and this has presented opportunities for new sites to be allocated.

Replenishment rates for sand and gravel (the ratio of new consents against volumes extracted) has been running around 0.5 for several years now, with very few new sites coming forward during the recession as operators reduced their investment and consolidated.

This position cannot be sustainable and joint working by our minerals and planning team has recently seen a significant new sand and gravel reserve allocated on the back of this shortage – the only such new site in the whole of the County in question.   This was achieved despite the initial draft plan having identified another site, a decision which we managed to overturn through highlighting the merits of our clients site and its deliverability.

There is also potential for mothballed and dormant sites to come back on stream including those with limited volumes as the growth in the number of smaller, independent operators in the market has meant that many of these can be made viable by these new operators in the market. These operators will commonly combine a recycling operation with mineral extraction, providing added income streams for all involved.

For further information or discuss mineral opportunities, please contact William Gagie on 01530 410859