Investing in quarry business
It has been said severally that Nigeria is a blessed country, but currently suffering from resource curse. Abundant human and natural resources that abound in Nigeria are quite enormous and are capable of making Nigeria the greatest in the world.
However, we have been unable to harness our resources in order to achieve greatness. 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. These are ingredients needed for economic development of the country. Employment generation will lead to reduction in social vices and improve both the per capita income of Nigerians. Income generation will improve both the national and gross domestic income. Not only this, there will be improvement in the marginal propensity to consume, thereby stimulating demand and the economy in general.
Products from quarry are very vital in the building and road construction industry and even outside the country. Demand for quarry products consisting of granite chips of various sizes and quarry dust is very high. You have construction companies paying in advance for established quarry company.
Quarry sites are numerous in Nigeria. You can hardly travel 100 kilometres 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 & 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.
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.
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 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 400,000 metric tons per annum. This translates to annual turnover of over N800 million, 50 percent profit margin has been computed. This gives as annual net income of N400 million. This is no doubt a solid investment.
OLUMAKINDE ONI