Police seize $2.5M in drugs, arrest two men north of Newcastle

Police have arrested two men and seized almost 64 kilograms of drugs with an estimated street value of more than $2.5 million, north of Newcastle.

Strike Force Korpisalo was set up in March by the State Crime Command's Drug and Firearms Squad to investigate the illegal supply and use of chemicals and lab equipment for manufacturing prohibited drugs in the Port Stephens area.

On Thursday, police arrested Brayedyn Gould, 24, and Drew Paterson, 34, at Salamander Bay.

A vehicle, driven by Mr Gould, was searched and police seized chemical containers and liquids.

Strike force detectives, with the help of the Raptor Squad and the Chemical Operations Team, then searched two storage sheds in Salamander Bay and a property in Boat Harbour.

Police said they seized 50 kilograms of pseudoephedrine, 12.5 kilograms of methylamphetamine, a kilogram of cocaine, $15,000 cash and 50 items believed to be used in manufacturing drugs.

Mr Paterson was charged with manufacturing a prohibited drug greater than a large commercial quantity and dealing with proceeds of crime greater than $100,000.

Mr Gould was charged with taking part in manufacturing a prohibited drug greater than a large commercial quantity.

Allegations aired in court

Drew Paterson did not apply for bail today and it was formally refused.

Police prosecutor Ashlee Uren opposed bail for his co-accused Mr Gould, saying it was a strong prosecution case.

"Having chemical waste would imply he was involved in the manufacture of drugs."

Judge James Viney said without testing, the contents of the containers were unknown.

"In fairness, it is a suspicion that the nine medium-size containers have drugs, but that is not confirmed," he said.

"It is not confirmed if it is chemical waste or other material."

Sergeant Uren said "they would need to be subjected to further testing".

Trips to Bunnings

Judge Viney said Mr Gould's role seemed to involve making trips to Bunnings to buy supplies.

"There is nothing to suggest any observation of him at the laboratory, being physically involved in the cooking or however it [the drug] is manufactured," the judge said.

Judge Viney granted bail, saying there was nothing to suggest the accused was involved in drug supply.

He said while there was "some strength to the case, it is at the current time a circumstantial case".

The judge also said a two-year delay for trials in Newcastle also meant Mr Gould would spend a lengthy time on remand, without resolution.

As part of his bail conditions, Mr Gould must live at a Kurri Kurri address, report to police twice weekly, and cannot leave New South Wales.

In addition, he must abide by an overnight curfew and cannot interfere with witnesses or contact his co-accused.