Establishing a quarry business
Justification
Abundant human and natural resources that abound in Nigeria are quite enormous. Establishment of quarry plant is one of the projects that will readily utilise our otherwise idle human and natural resources. Quarry plant establishment is an injection into the real (productive) sector of the economy. Real sector development guarantees employment and income generation.
Products from quarry are very vital in the building and road construction industry in the country and even outside the country. Demand for quarry products consisting of granite chips of various sizes and quarry dust is very high. Construction companies usually pay in advance to established quarry companies.
Quarry sites are numerous in Nigeria. You can hardly travel 100km without seeing massive rocks waiting to be tapped. In this regard, the raw materials are readily available.
Technical information
To establish quarry plant, you need to procure a site (where you have massive rock deposit). You need to do the analysis of the rock deposit to ascertain the quality and quantity of rock deposit. Application for quarry lease/licence is then made to the appropriate Federal Ministry (mines and power). On obtaining the quarry lease, site development follows. This is comprised of site office and installation of the quarry plant. Procurement of utility items such as generator, weighing bridge and project vehicles are also very vital. Commercial take off follows.
The project can also be embarked upon by the existing construction companies as a way of diversifying and to ensure raw materials availability for their activities.
Serious mined investors can be assisted in the development of this project including all the above stated implementation procedures.
Financial implication
To establish the plant a sum N517 million of will be needed broken down as follows:
N
1. Pre-investments : 2,000,000
2. Site acquisition : 10,000,000
3. Approvals : 5,000,000
4. Plant and machinery : 250,000,000
5. Utilities : 200,000,000
6. Working capital/others : 50,000,000
Total N517,000,000
===========
The project can be established by federal/state governments to aid the repair and construction of roads and also to diversify the economic base of various governments. Construction companies can also establish this project as a way of diversifying. Banks (especially bank of industry) will be ready to assist, a well packaged prospective investors. Serious minded investors can be packaged to meet bank’s requirement.
Profitability
The plant has an output of 900,000 metric tons per annum. This translates to annual turnover of over N1.8 billion. 50 percent profit margin has been computed. This gives an annual net income of N900 million. This is no doubt a solid investment.
The author can be contact through 08023058045 and olumakindeoni@yahoo.com.
OLUMAKINDE ONI