Paying the price: a six-figure fine for RMA breach

Waikato Regional Council v Taharoa Ironsands Limited [2025] NZDC 1461 is a recent sentencing decision imposing a fine of NZD105,000 for permitting the discharge of a contaminant. This decision follows the general trend being seen with environmental prosecutions: that regional councils are taking the lead in filing charges, that contaminant discharge is the most common type of offending coming through the courts, and that penalties are steadily increasing. We have seen fines for discharge of contaminants increase in the last year. With fines still well below the maximum penalty and a proposal to increase penalties in the Resource Management (Consenting and Other System Changes) Amendment Bill, we expect this trend to continue.

The defendant, Taharoa Ironsands Limited (TIL), operates an iron sand mine near Kawhia on the west coast of the North Island. The mine covers an area of approximately 1,600ha and has been operating since the 1970s, using a process where sand is mixed with water to extract iron ore. The leftover material is then pumped to disposal areas, where the water is supposed to settle before being reused or discharged offshore through an authorised pipeline. TIL holds resource consents issued by the Waikato Regional Council (WRC) for the discharge of stormwater, wastewater and process water to either land or the Coastal Marine Area.

The discharge occurred in January 2023 following weeks of heavy rainfall and the effects of Cyclone Hale. The extreme weather resulted in three large overflow pipes spilling approximately 960,000 to 1,060,000 litres of sediment-laden water onto the surrounding land. The water then flowed over sand dunes, down to the beach, and eventually into the ocean, creating a large brown plume that stretched about 180 metres offshore. The discharge continued for about 55 hours, during which time members of the public reported seeing "thick brown sludge" flowing to the beach.

The effects of the discharge on the environment were serious in the short term, diminishing to moderate-to-low as time passed. The affected area was about 3,500 square metres of sand dunes and vegetation and the sediment laden water flowed approximately 180 metres to the ocean.

As a result, WRC filed one charge against TIL for the discharge of a contaminant (sediment laden water from the process of iron ore extraction) onto land in circumstances which may result in that contaminant entering water, contrary to section 15(1)(b) of the Resource Management Act 1991 (RMA).

A starting point of NZD140,000 was set, acknowledging that TIL was "highly careless" in its mine operation, in the face of increasing water storage levels and adverse weather forecasts. In addition, the protection of the coastal environment in which the offending occurred is a matter of national importance under the RMA. Judge MJL Dickey commented that the large amount of rainfall, continuation of extraction and lack of precautions combined to create a "perfect storm" which led to the offending. Following a 25% discount for an early guilty plea, TIL was convicted and fined NZD105,000.