An Auckland company is to appeal a council decision to refuse resource consent for sand extraction off shore from Pakiri Beach, north of the city.
McCallum Brothers Limited applied to take up to two-million cubic metres of sand over the next 35-years from between 25 to 40-metres from the beach.
The dredging company was turned down by the council earlier this month.
The company said because the case was complex an appeal to the Environment Court will allow experts to be called to closely analyse the evidence.
It said without the Pakiri sand the construction market would suffer, affecting housing and infrastructure projects.
McCallum Bros managing director Callum McCallum said the sand needed must come from somewhere.
"Without this sand, the construction market could be hit with a major supply shock, seriously impacting housing, transport and other infrastructure developments. Sustainable extraction at Pakiri is the best solution not only because of the quality of the sand, but also due to its ability to be delivered into the centre of Auckland in bulk by shipping. Up to half of the city's construction sand requirements come from Pakiri.
"I understand many Kiwis naturally have questions about sand extraction. Anything to do with New Zealand's natural resources should be carefully considered. This is exactly why we want to progress the case to the Environment Court where experts can analyse all the evidence, including our research that indicates our sand extraction at Pakiri is sustainable and has minimal impact on the local environment."
The company said it has been extracting sand sustainably from Pakiri for more than 75-years.
Environmental groups opposed the resource consent arguing sand mining is wrecking the dunes, destroying the seabed and putting a wide variety of wildlife, including the rare fairy terns that nest on the beach, at risk.
There is no indication yet of a date when the Environment Court will review the case.