quarry mining business plan

Sample Quarry Business Plan

Quarry business plan sample.

Quarries play a huge role in the construction industry. Therefore, the potentials are enormous. In view of this fact, we have made this quarry Business Plan.

This will give the reader useful tips when drafting a plan for a quarry business.

In addition to that, we’ve made sure that the article is simplified. In other words, this sample plan is comprehensive enough to be followed. You should replicate it’s simplicity too!

Here is a sample business plan for starting a limestone, marble or granite quarry.

– Executive Summary

Romboldt Quarries is a quarry business to be located in the mountainous region of Kentucky. We have taken advantage of the Kentucky’s booming construction industry. As a result, this has influenced our choice of location. At Romboldt Quarries, we will be providing quarry services in addition to other products which will be mentioned shortly.

These products and services are in high demand.

We also have the advantage of experience. We have carefully chosen a crop of experts with vast skills. Such skills consist of technical as well as adminstrative. A greater part of our workforce have been players in the quarry industry.

Thus, this places us at advantage.

• Products and Services

Most of the time, people assume quarries are restricted to excavation. However, there are several other services and products we offer. At Romboldt Quarries, we our services includes quarrying, rockeries, crazy paving, paving slabs and monumental stones. Additional services include free quotations, templating, stone sawing, letter cutting and masonry. Several other services will be introduced on a need basis.

The abovementioned services will be professionally handled. We have no doubt about the quality of our services because we have skillful, trained and experienced professionals.

• Our Mission

We are on a mission to establish a reputable quarrying company. Hence, our goal is to be known for quality. This will be visible in all areas of our operations. Such areas will include our customer services, marketing, staff welfare and other areas.

There are major players in the quarrying industry. But we are in in it to make it more competitive. Hence, our sights are set on breaking into the top tier. Breaking into the top league will be achieved with a decade. We are also interested in working the talk.

Operating a quarry is capital intensive. This is because heavy machinery take up a good chunk of the costs. Running costs are additional expenses incurred during operations. Therefore the financial implications are enormous. We seek to raise the sum of $1,500,000.00. This sum will be raising solely from loans. We have a preference for low interest loans. About 80% of this sum will be spent on equipment purchase. However, 20% will be channeled into operational costs.

• SWOT Analysis

This is a part of our planning phase we cannot overlook. Hence, we have done a SWOT test. This is an analysis of our strength, weakness, opportunities and threats.

 i. Strength

Our strength as a company is founded in our expertise and experience. This counts for much considering the complexities involved. Consequently, we’ve seen tremendous opportunities for improvement. Although a lot has improved, there’s still room for improvement. This is why we are upbeat in our resolve to offer enhanced services.

This is a critical role we intend to play.

  ii. Weakness

Weakness is often misconstrued with failure. However, that isn’t the case. At Romboldt Quarries, we have identified our weaknessses to include our size and capacity. However, this is only temporal in other words, we intend to enhance our capacity within the shortest time possible. The more the capacity, the higher the number of clients we can serve. There is no gain saying that we are well poised to achieve our targets.

   iii. Opportunities

We are in business for the opportunities. Hence our determination to do all it takes within legal boundaries to promote our business. The boom in the construction industry has become our major motivation. Also, this doesn’t seem short-lived. Therefore we have hired the best hands in the industry. Such team will streamline our activities towards achieving set targets. We also seek to adapt to circumstances as they unfold.

iv. Threats

Threats are ever present. However how well they are handled determines success. We have assessed our threats. While doing so, we have also measured our levels of exposure. Hence, in anticipation, we’ve been able to create a buffer (by diversifying our services). This will enable us absorb any shocks that may result. These are in the form of an economic recession as well as a crash in the housing market.

• Sales Projection

This is the essence of our operations. Without sales, our activities can’t be sustained. Based on trends, we’ve done a 3 year sales projection. This has turned out promising and shows the following results;

• First Financial Year.   $890,000.00
• Second Financial Year. $1,800,000.00
• Third Financial Year.  $3,000,000.00
• Marketing Strategy

This is critical to running a profitable business. Hence we have chosen a vibrant marketing team. This team will ensure that a robust campaign is initiated. In addition, our contacts (mostly contractors) within the construction industry will be taken advantage of.

• Competitive Advantage

Our competitive advantage lies in our wealth of experience. In other words, we have made up for size with experience and expertise. This will enable us compete favourably with other quarrying businesses. The welfare of our workforce is also a factor that sets us apart from the pack.

This quarry business plan sample has highlighted some of the most important aspects of a good plan. We are confident that you will find this very useful in preparing a plan.

However a plan isn’t sufficient enough. You need to also implement. But this stage should be taken only after you must have carefully completed your plan. It’s best to have a second opinion. It’s best to seek such from experienced persons.

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Business Plan For Quarry

Congratulations on taking the first step in creating a business plan for quarry. This is an essential step towards entrepreneurial success and a well-crafted business plan will provide a solid foundation for your business venture!

Whether you're a budding entrepreneur with a brilliant idea or a seasoned business owner looking to expand, a thoughtfully constructed business plan will help you plan and navigate towards business prosperity.

In this comprehensive guide, we will walk you through the essential elements of creating a business plan for quarry that captures your vision as well as attracting investors, partners, and customers alike. From defining your mission and identifying your target market to formulating financial projections and developing a robust marketing strategy, our aim is to empower you with the knowledge and tools needed to turn your aspirations into a reality.

So whether you're just starting out or you're looking to revamp your existing business plan, read on for everything you need to know.

Why is a business plan important?

A business plan will help you think about your quarry business like you’ve never done before. This thinking will help you clarify important elements like your long-term goals and objectives. You can then work backwards from your goals to develop strategies and marketing campaigns to help make these objectives a reality.

A business plan will also help you think about your customers in great detail. You will be able to understand their wants and needs, where they hang out, and exactly how you will target them. This clarity will enable you to focus on developing the products or services they want.

Finally, if you are seeking outside capital such as investment or a bank loan, a well-thought-out business plan will show them you are serious about your business and you have developed a clear and thorough plan of action to achieve success.

A Business Plan For Quarry - The Key Parts

The executive summary, your company description, market analysis, products and services.

• Marketing Strategy
• Operational Plan
• Financial Projections

Risk Analysis

• Funding Request and Use of Funds (if applicable)
• Additional Information

An executive summary of your business plan for quarry is a brief overview of your business plan.

This is the first thing that potential investors or lenders will see, so it is crucial that you make a good impression. Keep this section short and highlight the key points of your plan.

What should an executive summary include?

• Overview of the Business
• Mission Statement
• Key Objectives
• Summary of Products/Services
• Financial Highlights and Funding Requirements (if applicable)

Remember potential investors don’t always have huge amounts of time to read your document so make sure that you condense the critical information, enabling the reader to make quick and well-informed judgments. Tips for the Executive Summary

Wait until you’ve written the whole business plan and then come back and complete the executive summary. This way you will know your business plan for quarry inside and out so you can highlight the key elements of the document. Remember the Executive Summary will shape the reader's initial perception of the business and whether they continue reading the document.

If you are looking for any tips on how to improve any section of your business plan, check out our Learning Zone , which has several in-depth guides on each section of the business plan.

The Company Description section of your quarry business plan is crucial as it offers a comprehensive overview of your business. This section provides essential information about your company's history, mission, vision, legal structure, location, and key milestones. It allows readers to gain a clear understanding of your company's fundamental characteristics and the context in which it operates.

When crafting your company description, make sure to include the following key elements:

• Business Name and Legal Structure: Clearly state the legal name of the company and its legal structure.
• Business History: Provide a brief overview of how the business came into existence. Highlight key milestones or events that shaped the company's growth and development.
• Mission and Vision Statements: Present the company's mission statement, which outlines its purpose and primary goals. Additionally, share the vision statement, which describes the long-term vision and objectives for your business.
• Products and Services: Briefly explain the products or services your business offers, emphasising their unique selling points and how they address customer needs.
• Competitive Advantages: Clearly state the competitive advantages that differentiate your business from others in the market. This could include unique features, patents, proprietary technology, or a strong brand presence.
• Location and Facilities: Provide details about the physical location of your business and any facilities required to operate successfully.

Tips for writing the company description section:

• Interweave storytelling into the company's history, tell the reader about your passion for the business and the journey you’ve been on to get to this point.
• Include strong visuals and infographics.
• Avoid jargon and keep the writing style clear and concise.
• Focus on your company's unique selling point (USP) and how that makes you stand out in the marketplace.
• Back up this information with customer testimonials if possible.

The market analysis section of your quarry business plan is essential for understanding the competitive landscape and the overall business environment. It is crucial to execute this section effectively as it demonstrates your in-depth knowledge of the market dynamics. This process will enable you, as an entrepreneur, to identify opportunities, mitigate risks, and develop strategies for success.

To conduct a good market analysis, it is important to have a deep understanding of the industry you are operating in. This information will help you make informed decisions about your product or service offerings, marketing strategies, and pricing.

Key elements to include in your market analysis section:

• Industry Overview: Provide a general overview of your industry. Describe the industry's size, growth rate, major players, and key trends. Include relevant statistics and data to support your claims.
• Target Market and Customer Segmentation: Clearly define your target market and outline the specific customer segments you aim to serve. Identify the needs, preferences, and behaviours of each segment.
• Competitor Analysis: Identify direct and indirect competitors in the market. Analyse their strengths, weaknesses, market share, and strategies. Highlight areas where your business differentiates itself from competitors.
• Market Trends and Opportunities: Explore current and future trends in the industry and market. Assess how these trends can impact your business positively and identify potential opportunities for growth.
• SWOT Analysis (optional): Consider including a SWOT analysis specific to your market. This can help you understand your business's strengths, weaknesses, opportunities, and threats in the context of the market.

How to nail the market analysis section?

• Differentiation: Focus on highlighting how your business differentiates itself from competitors, really try to drum home this point.
• Market Surveys or Interviews: Adding surveys or interviews and adding the key findings and quotes in the Market Analysis to support your claims will help reinforce the plans in your document.
• Competitive Matrix: a competitive matrix visually comparing your business against key competitors based on factors such as price, features, and customer service. This matrix is a great visual method highlighting your competitive advantages.
• Emerging Technologies or Trends: Identifying potential disruptions and how your company is prepared for them shows a great understanding of market dynamics and trends.

Looking for more inspiration on how to make your market analysis section even better, then check out our in-depth business market analysis guide.

In this section, we will highlight the core products and services that make your quarry business unique and valuable. It is essential to showcase what sets you apart from the competition and why your offerings are exceptional. This information is especially important for potential investors, partners, and customers who are keen to understand what sets your business apart in the market.

When describing your products and services ensure you include the following information:

• Description of Products/Services: Provide a clear and concise description of each product or service your business offers. Explain their primary function and how they address customer needs.
• Unique Selling Proposition (USP): Highlight the unique features or benefits that make your products or services stand out from competitors. Clearly state why customers should choose your offerings over alternatives.
• Product/Service Life Cycle: Describe where each product or service stands in its life cycle (e.g., introduction, growth, maturity, decline) and outline plans for updates or new offerings in the future.
• Intellectual Property (if applicable): If your business has any intellectual property (e.g., patents, trademarks, copyrights) related to your products or services, mention them in this section.

Extra elements to make this section stand out:

• Customer Use Cases: Present real-life customer use cases or success stories that illustrate how your products or services have solved specific problems for customers. Use compelling narratives to engage readers.
• Product Roadmap: If applicable, include a product roadmap that outlines future updates, enhancements, or new offerings. This showcases your business's commitment to innovation and continuous improvement.
• Quality and Testing Standards: Discuss the quality standards your business adheres to and any testing processes you conduct to ensure the reliability and performance of your offerings.
• Pricing Strategy: Integrate your pricing strategy into this section. Explain how you've determined the pricing of your products or services, considering factors like production costs, competition, and value to customers.
• Environmental and Social Impact: If your products or services have positive environmental or social implications, highlight them in this section. Increasingly, customers appreciate businesses that contribute positively to society.

The Marketing Strategy Section

Key Information to Include Within the Marketing Strategy Section:

• Marketing Goals and Objectives: Clearly state the marketing goals you aim to achieve. Focus on how you will increase brand awareness and drive customer conversions or leads.
• Target Market Strategy: Describe the specific strategies you will use to reach and engage with your target customers. This could involve digital marketing, traditional advertising, or other channels.
• Pricing Strategy: Explain how your pricing will attract the target market and how it compares to competitors' pricing.
• Promotion and Advertising Plan: Outline the promotional activities and advertising campaigns you plan to execute. Include details about social media marketing, content marketing, email campaigns, and other promotional tactics.
• Sales Strategy: Describe your sales process and how you plan to convert leads into paying customers. Mention any sales team structure and their responsibilities if applicable.
• Customer Relationship Management (CRM) Approach: Discuss how you intend to build and maintain strong relationships with your customers to encourage repeat business and loyalty.

Getting Creative with the Market Strategy Section

• Create a visual marketing timeline.
• Outline influencer or brand ambassador partnerships if applicable.
• Detail key metrics and KPIs.

By infusing creativity and innovative marketing ideas with sound fundamental marketing, you can really make this section stand out and impress potential investors and partners.

The Operation Plan Section

While marketing activities may seem more exciting, operational planning is essential for the success of your quarry business. This section focuses on the day-to-day operations and internal processes that drive your business forward. By providing a comprehensive roadmap of your resources, workflows, and procedures, you can instill confidence in potential investors that your business is well-equipped for growth.

Here are some key items to include in your operational plan:

• Organisational Structure: Describe the organisational structure of the company, including key roles and responsibilities.
• Key Personnel and Team: Introduce key team members and their qualifications. Highlight how their expertise contributes to the success of the business.
• Operational Workflow and Processes: Provide a high-level step-by-step overview of delivering your product or service, from production to delivery or distribution.
• Resource Requirements: Outline the key resources required to run the business, such as equipment, technology, facilities, and human resources.
• Quality Control and Assurance: Explain how the company ensures the quality and consistency of its products or services, and how it addresses any potential issues.
• Supply Chain Management (if applicable): If the business involves sourcing materials or products from suppliers, describe the supply chain management process.
• Legal and Regulatory Compliance: Discuss any legal or regulatory requirements specific to the industry and how the company ensures compliance.

How to add value to the Operation Plan section:

• Use visuals to outline organisation structures and workflows.
• Outline contingency plans, for example how the company is prepared for supply chain shortages or price shocks.
• Efficiency, efficiency, efficiency. Describe how you have driven efficiency gains for the business.
• Have you considered your business's environmental impact? If so, mention within this section.

The operational section of a business plan does have the potential to be dryer than more exciting elements such as marketing, however, by incorporating creative elements and forward-thinking workflows you can help keep reader engagement high.

The Financial Projections

The Financial Projections section can make or break a business plan. Always include well-researched and accurate projections to avoid undermining your business plan and losing out on potential investment. What to include in the financial projections section:

• Sales Forecast: Provide a detailed projection of the company's sales revenues for each product or service category over the forecast period.
• Expense Projections: Outline the expected operating expenses, including costs related to production, marketing, salaries, rent, utilities, and any other significant expenses.
• Profit and Loss (P&L) Statement: Present a comprehensive Profit and Loss statement that summarizes the business's revenue, cost of goods sold (COGS), gross profit, operating expenses, and net profit or loss for each year of the forecast.
• Cash Flow Projection: Include a cash flow statement that outlines the inflows and outflows of cash over the forecast period. This will help identify potential cash flow gaps.
• Break-Even Analysis: Perform a break-even analysis to determine the point at which the business's total revenue equals total costs, indicating when it becomes profitable.

How to add value to your financial projections section:

• Be prepared to defend your assumptions with data. If you are planning for a high-growth % make sure you can justify this assumption. If in doubt the more conservative the better.
• Include visuals that help readers quickly grasp the trends and patterns in revenue, expenses, and profits.
• Offer different scenarios based on varying assumptions. For example, present a conservative, moderate, and aggressive growth scenario.
• Include key financial ratios like gross margin, net profit margin, and return on investment (ROI).

The Funding Request and Use of Funds Section

This section outlines the financial requirements of the company and how the requested funds will be utilised to support its growth and operations.  Providing potential investors or lenders with a clear picture of how their money will be used will improve the business case for the funds and provide further confidence to investors. What to include in this section?

• Funding Request Amount: State the specific amount of funding you are seeking to obtain from investors, lenders, or other sources.
• Use of Funds: Provide a detailed breakdown of how the requested funds will be allocated across different aspects of the business. Common categories include product development, marketing, operational expenses, hiring, equipment, and working capital.
• Timeline of Funds Utilisation: Outline the timeline for utilising the funds. Specify when and how the funds will be disbursed and the expected milestones or deliverables associated with each funding phase.
• Expected Return on Investment (ROI): If applicable, include information on the expected ROI for investors. Highlight the potential for financial gains or equity appreciation over time.
• Repayment Plan (if applicable): If seeking a loan, provide a clear repayment plan that outlines the repayment period, interest rate, and the proposed schedule for repayment.

How to maximise this section?

• Create a visual timeline for key milestones such as the initial investment and key payback periods.
• Outline risk mitigation plans to instil confidence.
• Reiterate the company's long-term vision and how the funds can help achieve these goals.

As you near the end of your quarry business plan, it is crucial to dedicate a section to outlining potential risks. This section holds immense significance as it can greatly influence the confidence of potential investors. By demonstrating your market awareness and addressing challenges head-on, you can instill trust and credibility.

When conducting a risk analysis for your quarry car rental business plan, consider including the following:

• Identification of Business Risks: Enumerate the key risks and uncertainties that could affect the business. These risks can be internal (e.g., operational, financial) or external (e.g. market changes, regulatory changes, economic downturns).
• Impact Assessment: Analyse the potential impact of each identified risk on the business's operations, finances, and reputation. Rank the risks based on their severity and likelihood of occurrence.
• Risk Mitigation Strategies: Present specific strategies and action plans to mitigate each identified risk. Explain how you will proactively address challenges and reduce the negative impact of potential risks.
• Contingency Plans: Describe contingency plans for worst-case scenarios, outlining how the business will respond and recover from significant risks if they materialise.

How to make your risk analysis stand out?

• Add context with real-life examples. Are there similar businesses that have dealt with risks successfully in a similar manner to your strategy? This will add credibility to this section.
• Create adaptive strategies that demonstrate your business’s flexibility and adaptability.
• Outlining the responsible person for each risk and how they own it, giving further confidence in your risk management strategies.

Some additional information you may want to include in your business plan for quarry:

• Customer Surveys and Feedback
• Letters of Support or Intent
• Legal Documents (e.g., licenses, permits)
• Resumes of Key Team Members

A Business Plan For Quarry Wrapping It All Up

A business plan is one of the most important documents that you will create about your business. It can literally be the difference between securing additional finance or missing out. Developing your business is not an easy task, however, the opportunity to think about your business in such detail will no doubt help you develop new and important insights along with new ideas and strategies. With all sections of your business plan and especially the financial plan, be prepared to defend your position to potential investors or lenders. This means that you should never publish anything that you can’t back up with additional data or rationale. Business Plans are not created overnight so take the time to research and think about each section properly, always try to support your claims and strategies with market insight and data. We hope you’ve enjoyed reading this guide, if you are looking for more tips on creating a business plan check out our learning centre .Good luck with your next business endeavour! Action Planr

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Mining Your Own Business: How You Can Start Up Your Own Quarry Business

A quarry business, if set up and managed correctly, can be a lucrative venture. However, for it to be a success, just like every other business, it requires a lot of careful planning and preparation. 

Not only do you have all of the usual business hurdles to jump over – the financing, the finding a location, the business plan, the recruitment and training of staff, and so on, there are obvious safety and environmental regulations that you have to fall in line with.

In this article, we begin to cover just a few of the things that you need to do to be able to set up a successful and safe quarry and mining business.

Have a plan in place

Like every good business, a solid plan is essential. Without it, you are unlikely to be able to secure funding to start up your venture, and you will lack any sort of focus to enable you to develop, build, and grow your business.

We could dedicate a whole post to what you should include in a business plan , but essentially, you need to put the following things in there:

• Cover page – This should have your contact information on so that any potential investors or interested parties can contact you
• Executive summary – What your business does and the market need it solves
• Company overview – An overall profile of your company
• Industry analysis – Detail and discuss the market that you are hoping to enter
• Customer analysis – Who is your ideal customer? 
• Competitive analysis – Who are your main competitors? What are their strengths and weaknesses?
• Marketing plan – How will you promote your company and your products or services?
• Operations plan – This should detail the key operational purposes of your organization.
• Management team – Who are the key personnel, and how are they qualified to make a success of your company?
• Financial plan – Identify the ways in which your company will generate revenue, financial projections, and how much you are seeking from investors.

Once you have got your business plan sorted, you need to determine your legal structure and file for your article of incorporation with the secretary of state for your state to obtain a corporate certificate. You also need to make sure you have filed for all the relevant permits from local authorities.

Find a location

Ideally, you will have this in mind before you do your business plan as your location may have an impact on some of your plans. Finding the right location is essential for any business, but even more so when it comes to setting up a quarry business.

Where you choose depends entirely on what you are hoping to quarry, be it sandstone, gravel, granite, limestone, or something else. It needs to have whatever it is that you want to mine in abundance.

You also want to think about where your primary customers are going to be based and find a location as near to them as possible. Due to the expense of transporting heavy loads of quarried materials, customers don’t want to be importing from the other side of the country. 

 You may want to consider leasing a site from a landowner and paying rent on it or negotiate a revenue-sharing deal. Before you do anything, carry out a land appraisal and feasibility study to ensure that there is a possibility of running a sustainable business from there.

Purchasing your site means that you own your land, and all the revenue is yours. However, that also means a great deal of capital to find to buy the land. A franchise is a good alternative to this. 

Get the money together

Everyone needs some form of capital when starting a business, and a quarry business may require a large sum to buy all of the equipment you need. You could use a loan for this, and it would be helpful to look into a Personal Loan vs Overdraft loan to make the best decision for you. 

Of course, savings are an option, but it’s best to hold onto your own money for as long as possible – so long as you can pay back any loan you take out.

Purchase your equipment and machinery

Quarrying and mining involve a great deal of equipment and machinery, which can be expensive. This includes excavators, drills, loaders, and trucks. You may also want UTV’s or even golf carts to get from one side of a large site to another, and as well as the initial cost, these will need maintenance and upgrades to enable them to do the job. Somewhere like https://tcsupfitting.com/atv-utv-golf-carts/ can help with this, but make sure that you factor this into your budget.

If purchasing outright is beyond your budget, to begin with, you could look at leasing your equipment. Of course, this means that you do not own them, but it also makes sure that you have access to the latest models and technology. Another alternative is to buy used, to begin with, and upgrade as when your revenue starts to roll in.

Marketing your quarry business

Just like any other business, you need a solid marketing strategy in place to market your quarry business. Many quarrying companies lag behind when it comes to marketing, thinking that the strategies that work for other companies do not work well for them, and this simply is not true. All businesses need to attract and retain customers. 

Some of the most lucrative customers for a quarry business are governments, whether federal, state, or local, and other firms within the construction industry . Making sure you are well versed in the process of tendering for a contract.

Social media has opened up a whole new market for the quarrying industry, especially as there has been an increase in the number of self-home builders, as well as not-for-profit organizations and community groups.

However, one of the most important thing a quarrying business can do is to retain existing customers. To retain loyal clientele, you need to ensure a quality product and excellent service every single time and prove to them that you are the very best in the industry.

Quarries are always needed – without them, it is almost impossible to get hold of the raw materials required for construction. With careful planning and consideration, it holds great potential for further growth. It all starts with a good idea and an excellent business plan! 

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Quarry & Logistics Business Plan

Project Info

Project Description

Quarry business plan: project description.

The company has an intention to tap into the mining sector’s opportunities by engaging in the:

1) Operations of quarries,

2) Production of Polished Stones,

3) Paving Stones, and

4) Asphalt for the Construction Industry.

The Quarry site covering an area measuring two (2) cadastral units. It is located in Olodo Town in Obafemi-Owode local government area of OgunState.

Quarry Business Plan: Actions Taken

Brickstone was contracted to:

• Collection and desktop analysis of data related Nigeria Quarry Industry.
• Analyse the peer competitions within the Lagos and South West Nigerian Market
• Due diligence on the quarry equipment suppliers and equipment cost vetting
• Recommend appropriate transaction modalities and structuring and executing fund raising for the project.
• Develop a Comprehensive Financial Model to communicate the financial viability of the project to investors.
• Develop an Information Memorandum and Business Plan that would communicate succinctly the value proposition of the project to investors.
• Development of a suitable operating and maintenance model for the quarry.

Services includes the following

• Mining Industry and Market Analysis
• Project Cost Estimates Projection
• Equipment Suppliers Due Diligence
• Operation and Business Modelling
• Financial Modelling
• Information Memorandum

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Mining Software Business Plan

Start your own mining software business plan

Rekayasa Tambang Indonesia

Executive summary executive summary is a brief introduction to your business plan. it describes your business, the problem that it solves, your target market, and financial highlights.">.

PT. Rekayasa Tambang Indonesia (RTI) meets the needs of clients – private and government-owned mining companies – in virtually every sphere of geological interpretation and modeling, mine design and engineering, and mining productivity improvement activities. RTI is a subsidiary company of Mining Engineering Software Development and Technical Assistance (MINER DELTA), a U.S. software manufacturer who provides engineering software for full-service mining design and geological engineering and interpretation, and offering the managerial and technical resources that are vital to solving complex geological interpretation and modeling, mine design, mining optimization, mine scheduling, and dump design and rehabilitation in Indonesia as well as Southeast Asia Region.

The Products RTI will be offering five distinct products and services. The first is geological interpretation and modeling software systems. This product and service provides the most comprehensive geological database, innovative interpretation tools, advanced modeling techniques and resource reporting for most types of deposits ranging from simple vein, stratiform, and massive deposits, to complex and highly deformed ore bodies. Mine design and engineering software systems will also be offered in addition to mining optimization and scheduling software systems. Lastly, dump design and rehabilitation will perform analysis regarding environmental impact, designing mine waste dump, designing acid drainage, designing ground water drainage, and environmental rehabilitation.

The Market The total market value for open pit, underground, and quarry mining software technologies has grown at an average rate of 22% over the past five years. Since there is no local engineering software producer in Indonesia, the imported software technologies account for 100% of all open pit, underground, and quarry mining engineering and geological software technologies in Indonesian mining industries. Total imports of mining software technologies totaled $75 million last year, 23.7% greater than previous year’s levels of $60.6 million, which were in turn 26.3% greater than the year before’s imports, valued at $48 million.

Competitive Advantages The key factors for RTI to create and maintain competitive advantages includes its access to intangible capital (business networks, leadership, talent, entrepreneurs, intellectual property and brand) and advanced technology. These two advantages are interrelated. The “intangible capital” to a large degree is intellectual capital that has been captured by the organization. RTI has been very careful to design systems to capture the human capital that has been developed by the members of the organization. This is indeed a huge advantage because even as some employees are transitory and move on to new companies, their contributions and knowledge are captured by RTI and leveraged by the current employees. This intellectual capital capture then fuels the advanced technology.

RTI is an exciting company that combines advanced technology in the form of software and consulting services serving the mining industry. RTI has forecasted strong revenue numbers for year one, growing steadily through year five. Gross margins will be a high % of sales with net profits improving each year.

1.1 Mission

The mission of RTI is to establish a strong presence in Indonesia to implement all provisions of the MINER DELTA mission statement with the specific mission of becoming the leading mining and geology software and consulting services provider in Indonesia. This will be done by creating customer value through facilitating optimal and efficient operations by developing the best techniques of image analysis. Also, as the commercial arm of the MINER DELTA, RTI will establish a reputation in the mining industry for exceeding customer expectations through exemplary consultative service.

1.2 Objectives

The financial and marketing objectives of RTI are summarized here.

• Healthy sales in the first year, growing steadily through by the fifth year of plan implementation.
• Top drawer average gross margin percent of sales revenue.
• Net income consistently improving each year.

The financial objectives are converted into marketing objectives. If the company wants to earn its targets for gross margin and sales revenue, then it must set a high average profit margin on sales. To achieve these targets, the company will have to set certain goals for customer awareness such as by proactively approaching the prospective client candidates, teaming-up with other technology providers (hardware manufacturers and platform developers), partnering with reputable local and regional mining contractors, and equipment suppliers to reduce competition, improve pricing as well as reducing risks.

Thus the marketing objective might read:

• Achieve targeted sales revenue each year for the next five years.
• Expand customer awareness over the planning period.
• Reduce competition and risks while lowering price levels by teaming-up with other technology providers (hardware manufacturers and platform developers) and partnering with reputable local and regional mining contractors and equipment suppliers.

1.3 Keys to Success

The key factors for RTI to create a competitive advantage includes its access to intangible capital (business networks, leadership, talent, entrepreneurs, intellectual property and brand) and advanced technology, and its ability to customize its location.

In addition to intangible capital, RTI has a technological advantage with its advanced mining design, scheduling, and geological interpretation programs. Software performance is judged by how accurately the software calculates and produces visibility plots. Other qualitative measures, such as flexibility and ease of use, are important measures that RTI also excels in. To a sustain competitive advantage, RTI will focus on refining and improving the system with future software versions. RTI will continue to research image analysis issues.

The combination of human resources and advanced technology enables RTI to focus on its mission of becoming a customer driven company. Each system will be individually designed and installed by trained personnel. This type of personalized service is only available from RTI; and its ability to operate in a “turn key” fashion is highly valued in its target market. The close personal relationship between customers and RTI is vital to our mission: “to exceed customer expectations through exemplary consultative service.”

In order to effectively operate in this fashion, RTI’s location in Jakarta situates it close to the core of its target market. Further, RTI’s product and services distribution is aided by the locations in the major mining provinces in Indonesia (East Kalimantan, South Kalimantan, South Sumatra, Central Sulawesi). Sales demonstrations, installation and design, service, and maintenance will all be subject to a lower travel cost. As unit sales increase, the distribution cost advantages will be measurable cost competitive advantages. Being close to our customers will provide many intangible benefits: it will help consulting efforts and it will aid in our quest to be customer and market driven, rather than just a branch office, or even a representative of any software manufacturer or foreign consulting firm.

In a typical mine, the most important link in its value chain is clearly the primary activity of operations, to produce more product for a cheaper price. RTI provides value and benefit to its customers by targeting this specific activity in its customer’s value chain. The systems generated by RTI for its clients provide a quality assurance activity that monitors operations and is a guide to raising its customer’s operational performance.

Company Summary company overview ) is an overview of the most important points about your company—your history, management team, location, mission statement and legal structure.">

RTI is a subsidiary company of MINER DELTA. Services provided include: geological interpretation and modeling, mine design, mining optimization, mine scheduling, and dump design and rehabilitation.

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MINER DELTA’s management demands a good financial performance from RTI. As a subsidiary company of MINER DELTA, RTI sets the following objectives for the products and services lines of geological interpretation and modeling, mine design, mining optimization, mine scheduling, and dump design and rehabilitation:

• Reduce competition, reduce risks, and lower price level by teaming-up with technology providers (hardware manufacturers and platform developers), partnering with reputable local and regional mining contractors, and equipment suppliers.

2.1 Company Ownership

RTI was incorporated in Jakarta as an Indonesian “Perseroan Terbatas” (PT) corporation on August 4, 2000, under the Foreign Investment Laws of the Republic of Indonesia, with an authorized 1 million shares of common stock.

The company is owned in majority by MINER DELTA. There is one minority owner, an investor from Jakarta, Indonesia.

2.2 Start-up Summary

Total start-up expenses include legal costs, logo design, stationery, as well as start-up assets required, and cash to handle the first few months of consulting operations as sales and account receivable play through the cash flow. The details are included in the following chart and table.

2.3 Company Locations and Facilities

The initial office will be established in the Kebayoran Baru area of South Jakarta, Indonesia, the heart of the Indonesian business area.

Products and Services

The company management team is capitalizing on the lucrative business opportunity of creating compliance analysis and modeling, design and engineering, and productivity improvement software systems to aid mining companies. RTI’s products and services will help companies gain competitive advantage in the marketplace since its products and services will shorten the time-to-market cycle for its clients. This, combined with the management team and business opportunity, has generated tremendous interest for RTI’s compliance systems in the Indonesian mining industry.

3.1 Competitive Comparison

Deposits and excavation images analysis is a developing technology and, as such, the industry lacks standardization.

In this digital image analysis market, no market leader exists, and only three other major players in Asia have developed and begun to market similar products and services. These companies are all in Australia: ECS International of Bowral, Runge Mining, and Mincom of Brisbane.

RTI’s sustainable competitive advantages are its patentable advanced technology and custom system design/installations, human capital, and strategic location.

3.2 Product and Service Description

• Geological interpretation and modeling software systems : This product and service provides the most comprehensive geological database, innovative interpretation tools, advanced modeling techniques and resource reporting for most types of deposits ranging from simple vein, stratiform, and massive deposits, to complex and highly deformed orebodies.
• Mine design and engineering software systems : Design and engineering software systems for open pit, underground, and quarry mining.
• Mining optimisation software systems : Installing a Productivity Improvement System, a total productivity control system to increase productivity level as well as shorten the time-to-market cycle for the clients.
• Mine scheduling software systems : Mine scheduling for open pit, underground, and quarry mining.
• Dump design and rehabilitation : Performing analysis regarding environmental impact, designing mine waste dump, designing acid drainage, designing ground water drainage, and environmental rehabilitation.

3.3 Fulfillment

The key fulfillment and delivery will be provided by the principals of the business. The real core value is professional expertise, provided by a combination of experience, relationships and connections in the market (quangxi), discipline, smart work, hard work, confidence, and education.

RTI will work with computer hardware, peripherals, accessories and add-ons manufacturers, and platform developers under project-by-project basis. RTI will not exclusively represent any of these companies in order to keep its position as partner for every supplier and technology provider rather than competitor of any of them.

3.4 Technology

MINER DELTA is a recognized leader in supplying integrated geological and mining software technologies and computerized consulting services to the mining industries. As the commercial arm of MINER DELTA in Indonesia, RTI will focus on providing its clients with rapid, non-disruptive, and accurate analysis of deposits and excavations images using the integrated software technologies developed by the parent company. The technologies employ digital image analysis to calculate deposits’ size, orientation/position, and distributions, as well as provide options of mining methods, create value through monitoring mine works-in-progress, and empower mining engineers with crucial operational data.

3.5 Services and Supports

RTI’s services and support are truly done at the client’s site. In essence, the service begins with the technical presentation and on-site demonstration of the technology. Through these initial communications with the potential buyer, RTI will assign its Vice President of Sales and Marketing to conduct an analysis on the client’s operation and begin to customize the system to fill their needs and solve their problem. Once it knows what the prospective client wants, it will then send a technical proposal to the prospective client with a draft contract. A commercial meeting schedule will be arranged with the prospective client to open negotiations with the client’s decision board, and then to close the selling cycle by having the client sign the contract.

Within one working week after contract signing, RTI will submit a document of its project design proposal to the client for approval. Upon project design approval, it will then go to the mine and install the site specific system. Along with the installation it will provide one month of on-site training of MINER DELTA to the supervisors/engineers selected by the client. Besides providing a one year warranty, RTI will also offer the client long-term technical support called “Project Perpetuation Assistance.”

In keeping with its mission to provide market driven products and services, RTI will keep in close contact with all clients and solicit ideas on improvements and necessary changes. This contact will be achieved through consulting for the mines, sending out questionnaires, and maintaining daily emails, as well as weekly telephone contacts, with each client.

3.6 Sales Literature

The business will begin with general corporate and technical brochures establishing the positioning and defining the company’s intangible capital to be transformed into clients’ benefits. These brochures will be developed as part of the start-up expenses.

Literature and mailings for the initial market forums will be very important.

Market Analysis Summary how to do a market analysis for your business plan.">

The demand for open pit, underground, and quarry mining software technologies is projected to grow at an average rate of 16.89% annually over the next five years. Demand will result from the expansion programs of existing mines and establishment of new mines, particularly for coal, gold, and quarry products. In the coal mine sector, the establishment of a new generation of coal mine companies is expected to be very active during the next few years. Growth in other mining sectors, such as quarry activities for clay, limestone, feldspar, kaolin, marble and other stones, ore and sand iron, will also have an effect on the demand for mining and geology software technologies.

Aside from the coal sector, there is continuous growth in civil construction activities, which requires increased production of building materials such as cement, sands, stones, and various products made from kaolin, limestone, and other quarry materials, such as tiles, bricks, etc. Export growth of these materials is also expected to fuel demand.

Future growth in the mining and geology software technologies market will depend on continued growth in the coal consumption in both global and domestic markets. Government policies will also play a role as the government has sought to support the mining industry through investment incentives and lowering tariff on technologies and equipment imports.

4.1 Market Segmentation

Demographics : During its first five years of operations, RTI will target large domestic coal, base metal, precious metal, and quarry mines. After five years of operations, it will expand to service smaller coal, metal mines, and quarries. This industry is comprised of local companies within every province.

Geographic : RTI will operate regionally in the Southeast Asia region, but will focus initially on the Indonesian mining market.

Technographic : In all cases, the target market is comprised of open pit coal mines, open pit metal mines, underground coal mines, underground metal mines, and quarry mines.

4.2 Target Market Segment Strategy

In its first five years, RTI will be focusing on large, domestic open pit coal mines, open pit metal mines, underground coal mines, underground metal mines, and quarry mines.

4.2.1 Customer Benefits

Clients do not buy features, they buy benefits. In selling and marketing its products and services, RTI will demonstrate its capability in delivering benefits (4Cs) rather than presenting the company’s marketing mix (4Ps):

• Customer needs and wants : Mining companies are typically conservative and fiscally prudent. These companies are interested in cutting costs to improve the “bottom line” since it is difficult for them to manage the “top line” given that their final product is a commodity. Mine companies prefer a vendor to operate in a turn key fashion. They do not have the additional human resources to design, procure equipment, and install a complex system, such as the one RTI offers. They would prefer that an expert come in and do it for them. However, the MINER DELTA software system is an integrated system, so customers do have the choice to procure their own equipment and do have a large say in how to design and install the system.
• Cost to the customer : RTI’s products and services costs reflect the advanced technology and comprehensive design and support. Mines operate in large volumes, not only of mined product, but also in dollars. The costs spent on the MINER DELTA software will quickly be earned back in the data generation and mining operations monitoring. The return on investment depends on the adjustments made by the mine operators once given the data. Payback period can be achieved within a few months.
• Convenience : As an integrator, RTI installs the custom system and provides the design and installation know-how, as well as the specialized software.
• Communication : In order to truly succeed, RTI will have to appeal to the heart of the market: the middle 70% of the market that will buy the product after its perceived risk is mitigated through colleague’s purchase and communication of satisfaction. Another important method to enhance MINER DELTA’s brand awareness will be technical papers by researchers involved in the development of the systems and mine engineers discussing process improvements made possible by the program. In addition, RTI will also offer the client long-term technical support, called the Productivity Improvement Perpetuation Program, and, in keeping with its mission to provide market driven products and services, RTI will keep in close contact with all clients and solicit ideas on improvements and necessary changes.

4.3 Service Business Analysis

The mining and geology software market in Indonesia is one of the fastest growing segments of the computer industry and is estimated to have totaled $91.5 million in 2001. The greatest factors bearing on a software developer’s performance is the underlying strength of the markets in which the company’s products compete and the position of a given product in its life cycle. Interestingly, underlying markets that are experiencing downsizing pressures and networking pressures are the strongest markets for software. The mining industry is experiencing pressures to further automate and increase efficiency, so RTI is in an advantageous position. The fact that the MINER DELTA program is early in its development life cycle also indicates that revenue growth is promising, since its installed base has not even been established. The industry is characterized by rapid innovation and high gross margins.

4.3.1 Main Competitors

There are three other major players in the Indonesian mining industry that have developed and begun to market similar products and services. These companies are ECS International Pty Ltd of Bowral, Australia , Runge Mining of Australia, and Mincom of Brisbane, Australia.

4.3.2 Competition and Buying Patterns

Mining companies operate in large volumes, not only of mined products, but also in dollars. A small percentage increase in mineral recovery translates to hundreds of millions of dollars in increased revenue per year. Since mined products fetch fixed commodity prices, reductions in costs translate directly to the bottom-line. Any procedure or mechanism that can generate value through increased mineral recovery or decreased operating costs is of great interest to mine operators.

RTI must compete against the idea that mining companies should buy mining and geology software, and can get trained to operate it in one or two days; that they don’t need ongoing services, support, and intensive training to integrate the software system operation with the productivity control and improvement systems.

It is vital to build perception in the market that as an integration system, the MINER DELTA system is unique and improves upon current methods because of its three distinct characteristics;

• Non-disruptive

Also, the MINER DELTA system saves money and increases mineral recovery by providing equipment operators with real-time data to monitor and adjust their work-in-progress production, as well as empowering mine engineers with a continuous operational data log with which to make operations adjustments of larger scope.

Strategy and Implementation Summary

Initial contact will be made by either telephone or a combination of telephone, email, and fax. In this initial contact, the Sales Manager will make an arrangement for a technical presentation in front of the clients’ decision board. To avoid misinterpretation, all the information on the offered products and services will not be sent to prospects, but hand-delivered by the Sales Manager during his/her technical presentation. When the Sales Manager of RTI is visiting the prospect’s site, he/she will bring a demo system that is able to be set up and operated so the client can get a feel for the type of system and for the type of data the system generates.

All promotion efforts will be congruent with the mission to establish a quality reputation in the industry and truly create a quality brand image with RTI products and services. Industrial marketing is dissimilar to traditional consumer marketing. It is an interactive and time intensive process to establish a relationship and reputation. Establishing the relationship is beneficial for the obvious reason, it provides RTI with sales revenue, but, even more importantly, it provides RTI with an information conduit to the industry. A healthy relationship with the customer base will generate ideas, innovations, and other immeasurable intangibles.

Also, since long-term customer satisfaction is the most important key factor to its survival, RTI will offer the client the Productivity Improvement Perpetuation Program and keep in close contact with all clients and solicit ideas on improvements and necessary changes.

5.1 Competitive Edge

The President and Vice President Sales and Marketing of RTI have been working with the prospective clients in the Indonesian mining industry for more than 14 years, maintaining close and effective relationships with the prospective clients’ decision boards at the senior level, and are fully familiar with, and have a good knowledge about, Indonesia as well as the Asia–Pacific business environment.

MINER DELTA is a recognized leader in supplying integrated geological and mining software technologies and computerized consulting services to the mining industries.

The MINER DELTA system is unique and improves upon current methods because of its three distinct characteristics. Also, the MINER DELTA system saves money and increases mineral recovery by providing equipment operators with real-time data to monitor and adjust their work-in-progress production, as well as empowering mine engineers with a continuous operational data log with which to make operations adjustments of larger scope.

5.2 Sales Strategy

RTI’s sales strategy focuses first on building the identity of the company with the large domestic open pit coal mines, open pit metal mines, underground coal mines, underground metal mines and quarry mines who are interested in cutting costs to improve the bottom line. The President and the Vice President of Sales and Marketing of RTI have been able to find these customers using direct sales approaches.

RTI has to sell integration systems which are unique and improve upon current methods because of their three distinct characteristics, i.e. automatic, non-disruptive, and accurate. These systems save money and increase mineral recovery by providing equipment operators with real-time data to monitor and adjust their work-in-progress production as well as empowering mine engineers with a continuous operational data log with which to make operations adjustments of larger scope.

The targeted monthly sales between January and May, 2001 is the result of the intensive direct sales approaches, including technical presentations, mine operations studies, and project proposals which have been done between August and December, 2000.

5.2.1 Sales Forecast

The yearly total sales chart summarizes RTI’s ambitious sales forecast.

5.3 Milestones

The accompanying bar chart and table show specific milestones, with responsibilities assigned, dates, and (in most cases) budgets. RTI is focusing in this plan on a few key milestones to be accomplished.

Management Summary management summary will include information about who's on your team and why they're the right people for the job, as well as your future hiring plans.">

RTI is operated and managed by the President and Vice President of Sales and Marketing. When projects have been secured, personnel and staff will be recruited to fill the remaining necessary positions.

6.1 Personnel Plan

As noted in the previous section, the start-up team includes only two persons, i.e. the President and VP Sales & Marketing. When projects have been secured, another vice president (i.e. VP Operations), a General/Office Manager, and five employees will be recruited.

The accompanying table summarizes RTI’s personnel plan between 2001 and 2005.

Financial Plan investor-ready personnel plan .">

The following table shows the projected revenue of RTI over the period of 2001-2005. The most important elements in the financial plan can be listed as follows:

• The company must keep a high gross margin.
• In order to take advantage of the market demand growth to increase the yearly sales as well as the profit margin, the company must increase the frequency of business visits to the prospective clients’ sites by 10%. This will result in steady increases in net profits from sales in 2001 through 2005.

7.1 Important Assumptions

The accompanying table lists the main assumptions of RTI for developing its financial projections. The most sensitive assumption is collection days. RTI would like to improve collection days to take pressure off of its working capital.

7.2 Business Ratios

The following table contains important business ratios for the prepackaged software industry, as determined by the Standard Industry Classification (SIC) Index, 7372.

7.3 Break-even Analysis

The following table and chart summarize the Break-even Analysis, including the assumed monthly running costs and sales break-even points.

7.4 Projected Profit and Loss

The most important and strategic component in the Projected Profit and Loss statement is the net profit, which is planned and targeted to increase. Month-by-month assumptions for profit and loss are included in the appendix.

7.5 Projected Cash Flow

Cash flow projections are critical to RTI’s success. The monthly cash flow is shown in the illustration, with one bar representing the cash flow per month and the other representing the monthly balance. The annual cash flow figures are included here in the following table. Detailed monthly numbers are included in the appendix.

7.6 Projected Balance Sheet

The following Balance Sheet shows healthy growth of Net Worth and a strong financial position. The monthly estimates are included in the appendix.

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Reinventing How Quarries Plan Sales, Production, Material Needs and Inventory Forecasts

First published in the September 2018 issue of Quarry Management as Smarter Scheduling

The importance of collaboration and real-time information sharing in today’s business climate cannot be overstated. It is even more important for quarry operations that are constantly trying to plan and match production levels to sales volumes. Plant managers are challenged to maintain optimal quarry cash flow and inventory while preventing plant overbooking and co-ordinating with multiple suppliers for raw materials − all to schedule on-time deliveries that meet customers’ changing orders. This is especially difficult because sales teams do not often have visibility into what materials are available to be produced and sold, and how a new order will affect production. It is also challenging for managers to produce accurate forecasts and get up-to-date information regarding the plant capacity and actual sales versus forecasted sales.

A digital transformation

The latest report by Forrester Research predicts that 2018 will see enterprises refocus on leveraging advanced collaboration and communication tools across the enterprise. They also predict that, in the coming years everyone within an organization will become a data analyst with the ability to leverage modern business intelligence (BI) tools to quickly sort, prioritize and visualize targeted information that is directly relevant to that individual’s line of responsibility. The hope is that better visual interfaces and real-time reporting will actively support collaboration across operational teams and drive better decision-making at every level inside an organization. 

Not only that, the Millennial generation is expected to represent 50% or more of the overall workforce by the year 2020. Collectively, not only are younger generations ‘digital natives,’ meaning they grew up with technology, they also value it greatly and see it as a differentiator and ‘must have’ for employers. If companies want to hire and retain top talent going forward, they will need to continue to shift towards easy-to-use cloud-based tools and applications that support productivity and a collaborative environment. 

It is out of this BI-focused landscape that Daniel Mekis began to unravel the communication, production, and scheduling problems facing many quarries today. As an assistant plant manager in California, he struggled first hand with the planning and scheduling of materials at various quarries, and felt that a lack of collaboration was a major part of the problem. His team tried Outlook, Excel and even Microsoft Access and SharePoint solutions to compile sales information and to plan and co-ordinate production.

‘Back when I worked as a plant engineer, it was our job to know if we were going to make enough material to meet the demands of our customers,’ said Mr Mekis. ‘Even if you know you’re producing 250,000 tons of material throughout the year, the sales quantities change daily, with many orders changing multiple times before they actually ship. Other problems we ran into were plant overbooking, the quarry running out of materials, sourcing materials from multiple suppliers, or using incorrect materials. I used to spend at least three hours for each plant per week compiling sales information to build a forecast report – which would show materials demand in different time intervals.’

Real-time planning

Quarries are beginning to take advantage of new collaborative tools that allow teams to move away from solving a problem on an individual island and move toward initiating well-informed discussions between the various branches of an operational team. One new approach that stands out is PlantDemand, an online quarry scheduling tool not just for planning and forecasting orders and production, but also for proactively ‘PlantDemand is a new concept for aggregate operations because it uses collaboration and real-time information sharing,’ said Dennis Schaaf, director of PlantDemand. ‘It provides a single source of truth to plan sales, production, material needs and inventory forecasts.’ 

PlantDemand’s online calendar is a:

• Scheduling tool that allows plant managers to drill down into scheduling plans
• Single source of truth that provides plant foremen, superintendents, engineers, sales and the back office with data on aggregate production, inventory planning and forecasting
• Live sales calendar that allows teams to adjust the plant, hours, modes and sales, and because changes are reflected immediately, users can see how current production and future orders will be impacted, and how plant operations teams can solve inventory issues before they occur.

Automatic reporting  

PlantDemand allows plant managers to create summaries and quickly run default and custom pivot-style reports against actual sales or forecasts. Automatic reporting features make it easy for the sales team to quickly enter orders and see exactly how much can be sold on any given day. Plant operators receive reports from inside sales or generate their own reports to see exactly what they need to produce and how much raw material they need to order from suppliers. 

‘Most importantly for quarries, they can now forecast exactly what their customers want today and down the line, and they now have a ‘big-picture’ view to help them balance production, inventory and cash flow,’ said Daniel Mekis. ‘That just wasn’t possible before because everyone was bogged down with getting the day’s orders out of the door and keeping up with changes.’

Better organized, smarter scheduling 

Ashlee Avila, inside material sales rep with Granite Construction, was one of the first subscribers of PlantDemand. Her department introduced strategic material purchasing by using the app to track how oil is billed for each product, allowing them to save time and considerable amounts of money. When out in the field or talking with customers, she can quickly log into PlantDemand and add notes to each order. This leaves a historical record of changes made, which might include noting last-minute cancellations, indicating customers who left mix, changed the ordered tonnage, or other variables. She also likes the fact that every morning she can see the sales calendar for the whole month in PlantDemand, and it is all colour coded by material for better organization and simplified viewing.

‘Before PlantDemand we used spreadsheets, but they didn’t scale to the level we needed,’ said Ms Avila. ‘We didn’t have a good way to forecast for the month or week and tell our guys what orders were coming. Now I can log in and within a few clicks I can see our sales calendar for the whole month, week or day. I also create a daily dispatch report every afternoon for our plant foreman, as well as a quality-control report that tallies all our orders for the next day. We save it as a PDF and it’s in a very easy-to-use format, so we’re all working from the same schedule.’

Ms Avila says PlantDemand’s mobile app is also extremely useful and she likes the way that she, the sales team and the plant manager can access it anywhere and at any time, with no software or hardware to install. She can use her iPhone to make changes to order dates or tonnage needed while in the field talking with customers. Sales staff also uses the mobile app when they are with customers to quickly see if the plant is running the next day and if so, what mix. This saves time by not having to call the office each time a customer has a question. 

Smarter inventory planning

Using PlantDemand, plant personnel can also create a production schedule, production report, and inventory forecast by tying in the live sales calendar with the plant’s production plan. Users start by entering minimum and maximum desired inventories of each product, taking into account historical data, upcoming sales, volumes and demand. April Scott, inside material sales/materials dispatcher for Granite Construction’s Sacramento office, believes PlantDemand’s inventory planning and forecasting tools help prevent stock run-out, keep customers happy and maximize cash flow. 

According to Ms Scott, PlantDemand provides added visibility into the schedule and helps keep track of customers and orders. With more than 15 customer orders daily and thousands of tons of material in sales, her calendar is very fluid. Previously she had to manage changes manually using an Excel report each day before sending out the daily schedule to the team. Today she uses PlantDemand’s shared calendar to send out a daily schedule to the sales team, the construction department and the billing department. PlantDemand also helps monitor materials inventories and identify issues before they happen.

‘Before, I’d find potential problems, but it was much harder because my schedule was on a clipboard or in a long-term schedule in Excel, not all in the same place,’ said Ms Scott. ‘Now PlantDemand looks at how much oil and aggregates are needed for upcoming orders, which helps the plant and oil suppliers prepare. The app also highlights where we’re over our daily tonnages and helps us prepare for potential overbooked days. That’s huge because we can fix these problems early before our customers even know there would have been an issue.’

Today’s most successful quarries are taking steps to improve how they track and manage sales planning, production, material needs and inventory forecasts. At the crux of more efficient operations is a commitment to expand visibility across the plant and empower the entire team with online tools that support information sharing and collaboration. When teams have the right technology and real-time data at their fingertips, quarries can become more competitive and more responsive to customer needs. For more information visit: aggregates.trimble.com/plantdemand 

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mazarini ayyubi

Journal of Applied Business Research (JABR)

Keith Hampson

victor munnik

The Waterberg is punted as South Africa’s next coal frontier by industry and government. It has already seen two rounds of boom and bust driven by mega projects. The first was in the 1980s when the original Grootegeluk mine and the very large Matimba power station were constructed. The second boom kicked off in 2007 with a major expansion of Grootegeluk, to create one of the largest open cast mines in the world, and the construction of Medupi – advertised by Eskom as the fourth biggest power station in the world. It is also the biggest threat to Eskom’s future and to the national economy. These mega projects have reshaped the Waterberg. The first turned the remote apartheid village of Ellisras into a town, now called Lephalale, of fragmented parts. The second initiated a dream of creating South Africa’s ‘first democratic city’. But the boom tore into the local social fabric, benefitting the rich at the cost of the poor and entrenching brutally unequal gender relations. The bust is now compounding the ill effects. Meanwhile, the Mokolo River has been irreversibly damaged and the air is heavily polluted. A third boom is now hoped for. The coal bosses dream of ripping out hundreds of square kilometres of the delicate bushveld while government aims to “unlock the mineral wealth of the Waterberg” by delivering Gauteng’s sewer water to this arid area and massively expanding the coal line from Lephalale to the Highveld and on to Richards Bay for export. For this, they must ignore air and water pollution; pretend that climate change is small change; and maintain ignorance of the impacts on people. This report argues that coal’s next frontier looks more like coal’s last ditch. It is facing stiff resistance on a battlefield for our energy future and its own positions are crumbling. Another energy future is necessary as a matter of survival and requires a rapid phase out of coal and a just transition to people’s power and a more equal society.

Peter Cholakis

Tuesday Gichuki

This study is a follow-up of the recommendations of the first phase, which after an analysis of the construction/building materials sector, selected three products as having the greatest opportunity for growth. The products identified were natural stone, fired clay products and recycled plastics products.

Yusuf Muazu

Adolfo Fernández

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What is Quarrying?

Quarrying is the process of removing rock, sand, gravel or other minerals from the ground in order to use them to produce materials for construction or other uses. So, a quarry is any such working on the surface of the earth where minerals are extracted. Quarries are also known by other names around the world: 'surface mine', ‘pit’, 'open pit' or 'opencast mine'.  Within the UK, the largest quantity of mineral extracted by quarrying is used for construction and known as "aggregates".

What is the difference between a mine and a quarry?

In the UK a 'mine' is defined legally as an underground working and a 'quarry' as a site of mineral extraction without a roof. In other parts of the world, the world, ‘mining’ is used interchangeably with ‘quarrying’.

The term 'quarrying' is often associated with a place where natural stone is extracted to produce building stone or dimension stone and the name is thought to be derived from the latin 'quadraria' which described such a place.

The term 'mining' was similarly associated with places where minerals were extracted to produce metals or coal.  

What is the Quarrying Process?

What do quarries produce?

Quarries principally produce sand and gravel and crushed rock for construction and these materials are usually described as’ aggregates’.

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• Chemical grade Limestoe
• Common Clays
• Silica sand 

Thus, quarries are often associated with process plants the most important of which are ready-mixed-concrete plants, coating plants to produce asphalt and bituminous road-making materials, cement and lime burning kilns, concrete block and pipe works, brick works, pottery works and plaster/plasterboard factories.

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Mining Quarry Business Plan with Feasibility Study for Sand Gravel Clay Mining

• Post author: Ane
• Post published: April 14, 2020
• Post category: MINING / Business Tips / BUSINESS-PLAN-AND-FEASIBILITY-STUDY
• Post comments: 0 Comments

A lucrative Mining Quarry Business Plan with Feasibility Study for Sand Gravel Clay Mining for Nigerians. That is, a profitable venture business plan for sand, gravel, clay, and rock quarry. This plan also covers how to buy a rock quarry and how to start a gravel hauling business. So, do you want to start a Mining Quarry Business for Sand, Gravel, or Clay in Nigeria? This is Mining Quarry Business Plan with Feasibility Study for Sand Gravel Clay Mining

Do you need a Mining Quarry Business Plan for Sand, Gravel, and Clay with feasibility Analysis? Here it is. In fact, here are detailed Mining Quarry Business Plan for Sand Gravel Clay business proposal for start-ups.  So, if your question is, how do I start a mining quarry business in Nigeria? Here are the answers.

A profitable venture business plan for sand, gravel, clay, and rock quarry

Table of Contents

As a matter of fact, this is a Sample Mining Quarry Business Plan: Sand Gravel Clay suitable for Nigerian miners. It is a viability study designed for a Mining Quarry Business Plan: Sand Gravel Clay business in Nigeria. In fact, it covers how to start the mining quarry business in Nigeria. A Mining Quarry Business for Sand, Gravel, and Clay involves all mining processes to mine and process solid minerals for export, local dealers, and end users.

As a matter of fact, players in the sand, clay, and gravel mining industry are basically involved in mining and quarrying sand and gravel, along with clay, ceramic, and refractory minerals. Industry processes may include the beneficiation of these minerals. That is, adding value by washing, screening, and otherwise preparing the mined sand, gravel, and clay for marketing and other usages.

Who needs this business Plan? Mining Quarry Business Plan with Feasibility Study for Sand Gravel Clay Mining

In fact, the Mining Quarry Business is lucrative.  However, it requires some reasonable capital to start. It also requires approval from the regulating body, the Mining Cadastral Office that issues mining licenses and monitors mining activities.

The Sand and Gravel Mining industry processes sand and gravel used for construction aggregates. Other usages are for industrial applications such as road building, landscaping, snow and ice control, and petroleum extraction. In addition, the industry also undertakes the extraction and primary processing of clay and refractory products for use in downstream manufacturing applications. Read more from Mining Quarry Business Plan with Feasibility Study for Sand Gravel Clay Mining

Aspiring Entrepreneurs:

Any aspiring entrepreneur who is considering starting a sand and gravel mining business whether on a small scale or in a large scale should ensure that he or she, obtains all the necessary permits from the relevant local, state, and federal government office. In fact, what we mean is that all involved in this process need this business plan.

In fact, this business plan is needed to articulate the cost of establishing a Mining Quarry Business.  So, the entire solid mineral industry comprising businesses that mine and manage the distribution systems needs this business plan. Therefore, companies involved in Mining Quarry Business marketing that buy directly from the miners or depots and sell to a distribution system need this plan template.

In fact, solid mineral brokers or agents that arrange for sand, clay, and gravel to be sold via distribution systems operated by other companies also, need this business plan.

Strategic Planning: Mining Quarry Business Plan with Feasibility Study for Sand Gravel Clay Mining

Furthermore, Mining Quarry Business Plan with Feasibility Study for Sand Gravel Clay Mining for Nigerians requires a lot of strategic planning to start. You can see that it’s a highly composite business plan. Therefore, this is an opportunity to inform you that to get this properly done you will need some business development services from us, Complete Full Marks Consultants (CFMC) Limited that is to ensure that  CFMC Limited backs you up with  professional business consulting services. No matter the scope of your operation, you need our professional support.

Highlights of the Business Plan: Mining Quarry Business Plan with Feasibility Study for Sand Gravel Clay Mining

Furthermore, this business plan is designed to feature certain peculiar business plan elements to solid mineral industry.  Therefore, the highlights of this business plan include a peculiar SWOT Appraisal.  Added are feasibility analyses necessary to generate unit cost of production and turnover volumes. The industry analysis is the other highlight. In fact, the variety of products and market segmentations are the other peculiar concepts that are well-defined in this business plan. In fact, follow us to see how these are reflected in the business plan.

The Executive Summary Of Mining Quarry Business Plan with Feasibility Study for Sand Gravel Clay Mining

This business plan is for Complete Mining Quarry Ltd. Complete Mining Quarry Ltd. is a legally registered company in Nigeria. It has 5 quarry sand mining licenses for 5 different mining sites. It has its head office in Uyo, Akwa Ibom State.

An Overview

This is a 5-year business forecast for Mining Quarry in Nigeria. The feasibility analysis reveals that Complete Mining Quarry Ltd. will be generating a total turnover of N280,000,000.00 annually from the first year of operation. Therefore, based on our 25% gross margin target, this gives a total gross profit of N70,000,000.00 and a 15% net margin of N42,000.000.00.

Ownership Profile – Mining Quarry Business Plan with Feasibility Study for Sand Gravel Clay Mining

Complete Mining Quarry Ltd. is incorporated in Nigeria in 2004 by a group of young entrepreneurs.  It however started operation in 2016 after obtaining its mining license from the Mining Cadastral office, in Abuja.

Our Competition

This is a start-up business. Venturing into the sand, gravel, and clay quarry excavating business is a big challenge. This is because this industry is already saturated with big players. In fact, many construction companies in Nigeria mine their own gravel, sand, and clays for their construction uses. Therefore, the influence of these multinational companies in this business is a big challenge. However, our research shows that these big players only produce for their own usage. 

Therefore, they are unable to meet up with the demand from the domestic and industrial sectors of the economy. In fact, the micro sector of the economy is not adequately catered for. More so are the cottage industries and homesteads that are in the rural communities.  Therefore, our major clientele is going to come from this section of Nigeria’s economy.  In fact, this is why this Complete Mining Quarry Ltd. quarry is situated in Uyo. In fact, our expansion program will see us opening more mining outlets in other parts of Akwa Ibom State. 

Competitive Advantage

In light of the above, we are going to leverage five main competitive advantages. These are:

• Quality products.
• Our customer base is micro, cottage industry, and domestic base. 
• Quantity Availability all-year-round – availability of volumes demanded
• A highly creative, customer-centric, and proactive mining and distributive approach
• Lastly is to improve our workforce welfare based on Mining Quarry Business Plan with Feasibility Study for Sand Gravel Clay Mining

The business Objectives

The objectives for Complete Mining Quarry Ltd. are to:

• Have our products and services in most micro and cottage business outfits within our operating environment.
• Cover major towns and villages in Akwa Ibom state – This is to reach about 60% of our target market.
• Sustain gross profit margins at 25%, and 15% net profit margin.
• Develop a sustainable Solid mineral company that survives on its own cash flow.

In the light of the above, our goals include;

• Becoming a leading Solid mining company in the environment of our operations within our first three years of operation
• Expanding our company operations to cover  all parts of Akwa Ibom state, Nigeria.
• To order Mining Quarry Business Plan with Feasibility Study for Sand Gravel Clay Mining

Our Visions:

Furthermore, the vision for  Complete Mining Quarry Ltd. is to;

Become the biggest Solid mining company in Akwa Ibom State.

In this connection, our vision as a sand and gravel mining company is to engage in the distribution of sand and gravel etc. across major construction sites in Akwa Ibom  States of Nigeria.

Management Team: Mining Quarry Business Plan with Feasibility Study for Sand Gravel Clay Mining

Complete Mining Quarry Ltd. parades a formidable management team of experienced managers. The ownership of Complete Mining Quarry Ltd. is made up of young talented and skilled artisans who have a number of years of industry experience having worked for some of the Multi-national companies at one time or the other.

As a matter of fact, to beef up our workforce capacity, we have decided to hire qualified and competent hands to occupy the following positions at Complete Mining Quarry Ltd.;

• Chief Executive Officer (CEO)
• Quality Assurance Manager (Asst. CEO)
• Human Resources and Admin Director
• Sales and Marketing Officer
• Accountants/Cashiers
• Quarry machine operators
• Sand and Gravel Mining Casual Workers
• Tipper Drivers
• Customer Service Executives
• Security officers.

SWOT Appraisal – Mining Quarry Business Plan with Feasibility Study for Sand Gravel Clay Mining

As a way forward, we engaged a management consultant to do this. We are happy to state that our consultants, Complete Full Marks Consultants Limited, have been able to appraise our internal and external environments to determine how much strength, weakness, opportunity and threat to our existence posed by these factors.

Our Strength & Weakness – Mining Quarry Business Plan with Feasibility Study for Sand Gravel Clay Mining

Our consultants highlighted the fact that in the meantime, we have the latest state of the art mining equipment and trucks. These have positioned us to meet the demand of our clients. Meaning that our present capacity is capable of meeting whatever demand. In fact, even if the demand tripled over night or if we have a massive order to meet on emergency need, we are ready.

Furthermore, one other particular factor dictated is that internal economies of scale shall be reached within the next 3 years of operation. In the light of this, we will be able to generate the lowest per unit cost of production. As at now, our present scale of operation is very efficient looking at our breakeven curve. In the light of these, the large market anticipated in Akwa Ibom state, will foster high turnover which will keep us above the weaknesses and the threats identified. Read more from Mining Quarry Business Plan with Feasibility Study for Sand Gravel Clay Mining

Another factor we count on is the background of our Chief Executive Office.  He has a robust experience in the industry and also a pretty good academic qualification to manage Complete Mining Quarry Ltd.

Opportunities

On the other hand, the opportunities available to us are unlimited. There are loads of construction sites in and around Akwa Ibom State. In fact, a marketing strategy to push our products to them is already perfected. Ordering our Mining Quarry Business Plan with Feasibility Study for Sand Gravel Clay Mining now is a great opportunity..

Considering the business threat, the fact is that we are setting up a sand and gravel mining company in a town with other sand and gravel mining businesses. This might pose a challenge for us in breaking into the already saturated market in Akwo Ibom State.

Mining Quarry Business Plan with Feasibility Study for Sand Gravel Clay Mining – That means, the threat that is likely going to confront us is the fact that we are competing with already established sand and gravel mining companies. And the fact that there are also going to be other incoming entrepreneurs who are likely going to launch similar businesses within the location of our business. These will also compete with us for the available market. Another threat that we are likely going to face is unfavourable government policies and economic downturn.

Our Product For Mining Quarry Business Plan with Feasibility Study for Sand Gravel Clay Mining

As a matter of fact, our products are going to be generally centred on sand, gravel, clay and rock mining. Then, their supplies and distribution. Because our clientele is going to be those of the large number of micro industries, homesteads and cottage industries, our products are to be distributed to cater for all spare of our clientele. 

Our products will generally include the following:

• Construction sand mining
• Gravel mining
• Silica or industrial sand mining
• Abrasive-sand mining
• Ball-clay mining
• Bentonite mining
• Common clay mining
• Fuller’s earth mining
• Feldspar mining

Our Target Market: Mining Quarry Business Plan with Feasibility Study for Sand Gravel Clay Mining

In fact, we are in business to engage in the mining and supply of construction sand and gravel. Others are industrial sand and gravel. Then, are common clay and other products to the following organizations;

• Building and construction companies
• Road construction companies
• Household building sites
• Cement production plants
• Blocks moulding companies
• Community building projects
• Government Projects, and
• Professional’s practice sites

The Contributions of our Products and Services to the economy are;

• Creating employment opportunities – over 200 workers will be employed in the next 3 years.
• Our activities will also create business opportunities for the population who will be involved in one way or the other in the distributive value chain of our products.
• These will generate income for the participating members of the public – a boost to the economy GDP, which give rise to
• Improved lifestyle in our communities operations, which leads to
• Improved wellbeing of the populace
• In addition, are all-year-round availability of gravels, sand etc. – there will be no artificial scarcity to be created.
• Our capacity to deliver across Akwa Ibom saves cost in building.
• A good market for Mining Quarry Business Plan with Feasibility Study for Sand Gravel Clay Mining

What we bring into the business

As you can notice from above, we bring  into the industry in Akwa Ibom State;

• Good business knowledge, skill and practical experience in the solid mineral mining sector
• The capacity to consistently deliver quality solid mineral products.
• Market watch – this is for  a good understanding of the market trends to avoid scarcity.
• Finally, our staff bring modern online operational and technical skills.

The Financial Plan for Mining Quarry Business Plan with Feasibility Study for Sand Gravel Clay Mining

Furthermore, the materials and equipment required for Solid mineral business in Nigeria include mining trucks, office building, truck maintenance tools, company vehicles, weighing and measuring tools.  Others include mining license, excavating, stone crushing and selection machines.

This section take into account that the industry also has a high working capital requirement. This is because operators require sufficient capital to survive during periods of low prices.  At this period revenue may temporarily be insufficient to cover costs.

As a matter of fact, the analysis of these are in this business plan. The financial analysis segment details all of these. Therefore, included are estimates on capital funding and assets requirement. Then are, turnover and income statement forecast for the period under plan. The cash flow analysis is structured for the first three years of operation.

In conclusion:

Furthermore, we want you to understand that whether existing or intending business, you will need this business plan format when you make applications for government and non – government business capital grants. In addition, this format is also suitable for bank loan applications and for inviting investors. In fact, when you are writing your investment proposals or concept notes for business loan grant and start – up competitions, this must be handy.

Again, this is the format of business plan required for dealership approval by the regulatory bodies in Nigeria. If you have any challenges, please, contact us. Get a copy of Mining Quarry Business Plan with Feasibility Study for Sand Gravel Clay Mining now.

Use this check list to assess your readiness so far. Mark as completed, in progress or date to commence the process.

• Business Name Availability Check
• Business Registration
• Opening of Corporate Bank Accounts
• Securing Point of Sales (POS) Machines
• Opening Mobile Money Accounts
• Opening Online Payment Platforms
• Application and Obtaining Tax Payer’s ID
• Application for business license and permit
• Purchase of Insurance for the Business
• Leasing of a facility and renovating the facility as well
• Conducting Feasibility Studies
• Generating capital from family members
• Invitation for Investors

Furthermore;

• Applications for Loan from the bank
• Writing of Business Plan
• Drafting of Employee’s Handbook
• Drafting of Contract Documents and other relevant Legal Documents
• Design of The Company’s Logo
• Printing of Promotional Materials
• Recruitment of employees
• Purchase of the needed stone quarry machines and equipment, furniture, racks, shelves, computers, electronic appliances, office appliances and CCTV
• Creating Official Website for the Company
• Creating Awareness for the business both online and around the community
• Health and Safety and Fire Safety Arrangement (License)
• Opening party planning
• Establishing business relationship with construction companies, contractors and other stakeholders in the construction cum building industry
• Purchase of tippers and delivery trucks
• Ordering our copy of Mining Quarry Business Plan with Feasibility Study for Sand Gravel Clay Mining

READ ALSO :

• How to get your Mining Exploration Lease in Nigeria
• Where & How to get Small Scale Mining Lease in Nigeria
• Get a Quarry license here
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• Small Scale Lead Mining BPlan

The Final Copy for Mining Quarry Business Plan with Feasibility Study for Sand Gravel Clay Mining

Furthermore, be informed that this business plan’s final copy is always available. You can always have them on request at minimal cost. Therefore, to ascertain the cost of establishing a lucrative Mining Quarry Business Plan with Feasibility Study for Sand Gravel Clay Mining for Nigerians you need it. In fact, if you must win the loan application or attract investors, you need this part of the business plan. This is where we generate the parameters that determine if you are capable of winning the loan application or attract the investor.

Finally, I wish to let you know that Complete Full Marks Consultants (CFMC) Limited is a firm of Chartered Accountants, Auditors, Taxation and Management Consultants. In fact, our professional expertise is always brought to bear in our business plan development. In addition, our several years of industry experience speak for us. Therefore, we can assist you with all the business support services you desire.

Our Contacts:

Call us at +234 8034347851 or email us via [email protected]

And now, if you enjoyed this, please help us share to reach your contacts. Thanks for doing that. And, thanks for reading through Mining Quarry Business Plan with Feasibility Study for Sand Gravel Clay Mining

Deacon Anekperechi Nworgu, a seasoned economist who transitioned into a chartered accountant, auditor, tax practitioner, and business consultant, brings with him a wealth of industry expertise spanning over 37 years.

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Russia’s Stone Industry Today

This exclusive report looks at the main sources of decorative stone on the 17.075.400 km² territory of the Russian Federation, the leading quarrying and processing companies, imports, exports, the consumer market and future prospects. Author Yuri Sychov is Head of the Stone Dept. of yhe Federal Institute of Mineral Resources, and President of the Stone House Club in Moscow.

The Russian decorative stone industry today comprises 240 - 250 quarrying and processing companies, most of them quite small. Total raw material extracted in 2002 was around 450.000 tons, and the total amount processed was about 3,25 million m² (in slabs of equivalent 2 cm thickness). Some 31% was granite and similar hard rocks, 64% was marble and hard limestone, and 5% was soft limestone, sandstone, slate, quartzite, etc.

The most important stone producing region in Russia is the Urals (68% of blocks and 27% of processed products) - many quarries and processing factories are based here. The country biggest marble quarries are in the Urals region: Koyelga, operated by ZAO Koyelgamramor with an annual output of around 120.000 tons, and Mramorskoye, operated by ZAO Uralskii Mramor, with an annual production of around 53.000 tons. Russia's third big marble quarry is in south-central Siberia. Operated by OAO MKK-Sayanmramor, the Kibik-Kordon quarry currently has an output of around 27.000 tons a year.

Most granite quarries are located in the north-west of Russia, in the Karelian Republic and in Leningrad region. The Vozrozhdenie quarry, operated by Vozrozhdenie Holding Co., is the largest with an annual output of 26.500 - 32.000 tons. Since the break-up of the USSR, no statistics have been gathered by state authorities on decorative stone extraction or processing. However the author and colleagues have obtained reliable data from field surveys. The data in the table below is accurate to within 10-15%.

Processing factories

As a rule, the big Russian factories specialize in terms of the material sawn and polished: they work either marbles or hard stones. The largest marble processing plant is owned by ZAO Koyelgamramor. It is situated near Koyelga quarry and its annual output is around 400.000 m². Products include slabs, tiles and architectural products. The other large marble processing plant is operated by OAO MKK-Sayanmramor and it is situated near the Kibik-Kordon quarry in Siberia. Its principal product is marble tiles.

Among the granite processing establishments there is one which stands out - Moscow Stoneworking Combine (MKK) which in fact comprises four big factories. Combined output is around 380.000 m² a year (in equivalent 20-30 cm slab thickness). Products include slabs, tiles, paving, architectural parts, mosaics, memorials, kerb stones, etc. The second large granite processing organization is based in St Petersburg. The Vozrozhdenie group produces around 180.000 m² a year in 3 specialized shops. Slabs, architectural parts, steps and monuments are typical products. The third major granite processing company is ZAO Karelskii Granit with a factory near Kondopoga town in the Karelian Republic. The annual output is 80-90.000 m² and the main product line is slabs sawn from blocks extracted from various Karelian sources.

Modern equipment

Most Russian stone quarrying and processing companies employ modern equipment imported from Italy and other developed countries. In the marble quarries, portable diamond wire saws and chain saws are the most popular types of extraction machines. Today machines made in Russia can sometimes be found working alongside imported machines. In the granite quarries, the prevalent extraction technology is to drill a line of holes which are then filled with " gentle " explosives. This is known as "dynamic splitting" or the Finnish method. The explosive generally used today is called Granilen and it was invented by Russian scientists. A new method of slow explosion is now in use in some quarries. With the so-called "gas wedge" technology, the explosion in the blast holes proceeds very slowly - several seconds duration - ensuring minimum damage. The jet flame method is rarely used in Russia today. Diamond wire sawing is employed in the Vozrozhdenie granite quarry (one machine) and in one or two gabbro quarries in the Karelian Republic. This method is not very popular in Russia on account of the short life and high cost of the diamond wire when cutting granite.

All Russian decorative stone quarries are open cast - with one exception: the OAO Leningradslanets mine in Leningrad region. The profitability of mining limestone blocks here is ensured by sales of a by-product - combustible shale. Underground quarrying at Kibik-Kordon in Siberia is currently under study.

Most Russian stone processing plants are equipped with modern imported machines and production lines. According to the author's research, there are around 30 modern frame saw machines for granite, 8 frame saws for marble and limestone, 30 block cutters for marble and granite, 20 large diameter circular saw machines, 10 multi-axis diamond wire contouring machines, 25 calibrating and polishing lines and many secondary saws in Russia today.

Analytical review of the Stone Market

The reader may be surprised to learn that there are now more than 500 commercial and consulting firms on the Russian stone market. Most of them are based in the large cities. In Moscow the leading firms are OAO Mramorgranit, ZAO Metrospetstroy-Soyuz, Salon Gran-pri-MKK, OOO Granitglavstroy, OOO Tsentr-Mramor-Granit Marketing Service, Granul, Benefit, Novy Kamen, Stark-Kamen, AO Nast, MKK Trading House, OOO Alpary STK, ZAO Godopek and others. In St Petersburg the main companies are OOO Sardis, OOO Nensy, OOO Veresk PK Petromramor, OOO Sokrat, SK Iritas, OOO Stone-Trade, OOO Severny Kamen, OOO PK Litos and others.

Among companies in the other Russian big cities, the following are major: OOO Prirodny Kamen (Kazan), ZAO Etalon (Yekaterinburg), SK Diamant (Samara), OOO Granul-Novosibirsk (Novosibirsk), OOO Soliton (Tyumen), and Seit Ltd (Volgograd).

The Russian decorative stone market is estimated to be worth 400-500 million US $ including imports. The breakdown into product types is:

- slabs, semi-finished goods: 23,9% - tiles, small pieces: 36,6% - architectural parts: 10,8% - road-building products: 6,8% - memorials: 21,9%

As we can see, the most popular stone products in Russia are modular and other tiles. The most popular sizes are 300x300 mm, 305x305 mm, 400x400 mm, 300x600 mm and 400x600 mm, in 20 mm or sometimes 15 mm thickness. Tiles 10 mm in thickness are made but have not proved popular for practical reasons. Large and cut-to-size slabs account for 23,9% of consumption: the share is continually increasing.

Nowadays there are two types of buyers in the Russian stone market, which we will call business and direct consumers. The business buyers can be:

- Large state organisations - "monopolists" (OAO RZD, RAO Gasprom, RAO EES, etc.) and their regional departments who take decisions about building and financing; - Republican, regional and urban administrations; - Large and medium-size commercial companies, banks, shops and restaurants; - Dealers who represent a construction company in the regions; - Design and architectural practices who specify stone in their projects; - Stoneworking factories and memorial producers, who buy blocks from the quarry operators.

Consumers in the business market are usually situated in the big cities. They make large or very large purchases and are very price conscious. They work with well known, established stone suppliers and are paid on a commission basis.

There are three categories in the direct consumers market:

-Private individuals who make buying decisions for their own apartments, "cottages" or restoration projects; -Private individuals - owners of small building firms who carry out building and repair work in the private sector; -Private architects and designers.

The direct consumers market is in the development stage. The ratio between the business and direct consumers market is currently 55-60 / 40-45% by volume.

In 2002 Russian decorative stone imports totalled 92.000 tons. The breakdown was:

- rough blocks: 40.000 tons (33% marble, 67% granite); - slabs and tiles: 44.000 tons (850.000 m² in equivalent 20 mm thickness); - memorials: 8.000 tons.

The Ukraine was the leading supplier of granite blocks and semi-finished granite products. In 2002 the Ukraine was also the only foreign supplier of memorials in Russia. Granite blocks are also imported from Finland and Kazakhstan. Italy, Greece, Turkey and Spain are the leading suppliers of marble blocks, slabs and semi-finished products.

Regarding granite slabs, Italy, Spain and India are the main suppliers. However the main supplier of large cut-to-size cladding panels and modular tiles is China. This country also delivers a lot of road building products to Russia - kerbs, cube setts, etc.

The main importing companies are: OAO MKK Holding (granite blocks), Granul (granite & marble blocks and slabs), OOO Biely Kamen (granite & marble blocks), OOO Alpary STK, Stark-Kamen, AO Nast, Benefit Co., OOO Nensy, OOO Sardis, OOO Danko and others.

Stone exports from Russia are minimal - about 1,7-2,0% of the total extraction volume. The main buyers are the CIS countries and the Baltic states. A small quantity of granite blocks (mainly from Vozrozhdenie) was exported to Byelorussia, and some granite slabs and tiles were exported to Lithuania, Latvia and Kazakhstan. Small consignments of white marble blocks from Koyelga and Polotsk quarries were delivered to Italian and Spanish firms.

Future prospects

According to official estimates from the State Statistical Committee of Russia, the GDP is currently increasing at an average rate of 3% per annum. Foreign investments have hit highs and lows but overall the trend is upwards. There has been a building boom in Moscow, St Petersburg and other big cities in recent years and as a result stone consumption has increased - at up to 4-5% per annum. Compared with the situation in many European countries, the prospects for decorative stone consumption in the Russian Federation are currently more favourable. The share of the direct consumers stone market - currently 40-45% - will gradually increase due to a number of socio-economic factors, including a rise in purchasing power and the establishment of a genuine middle class. History shows that the middle class tends to lend stability to society. The business market will develop with increasing investment in the Russian economy - both domestic and foreign.

Simultaneously with the erection of new bank and office buildings there is a parallel growth in civil construction. In Moscow alone many new building projects are planned, including the Moscow City complex, the Ice Palace, around 60 skyscrapers, reconstruction of the Dynamo football stadium, subterranean trade complexes, the monorail system, etc. Total stone consumption for these projects is estimated at more than 1,5 million m². Stone consumption in the other big Russian cities is expected to increase in a similar fashion.

Article published on LITOS printed edition, nº 74, September 2004

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Moscow International Business Center (Moscow City)

• Guide to Russia

What can you do at Moscow City?

• Dine in style: Moscow City is home to 100+ cafes and restaurants, including Europe’s highest restaurant and ice-cream shop
• See Moscow like never before: Ascend to one of Moscow City’s observation decks for an unparalleled panorama of Moscow
• Admire world-class architecture: Each of Moscow City’s skyscrapers has distinctive architecture and design
• Learn something new: Visit the Museum of High-Rise Architecture in Moscow or the Metro Museum

Moscow City is a multifunctional complex in the west of Moscow, which has come to represent the booming business of Russia’s capital. Its skyscrapers enrich Moscow’s skyline, contrasting the medieval cupolas and Stalinist high-rises. Visitors to Moscow City can enjoy entertainment high in the sky, as the complex is home not just to offices, but to restaurants, cinemas, viewing platforms, and museums.

Photo by Alex Zarubi on Unsplash

History of Moscow City

Moscow City was first conceived in 1991 by honoured Soviet architect Boris Tkhor, who proposed to construct a business center in Moscow. It would be complete with gleaming skyscrapers rivalling those of New York and London, to reflect the new life and growing ambitions of post-Soviet Russia.

The chosen site was a stone quarry and disused industrial zone in western Moscow, in between the Third Ring Road and Moskva River. Initially, the territory was divided into 20 sections arranged in a horseshoe shape around a central zone. The skyscrapers would increase in height as they spiralled around the central section, with shorter structures built on the waterfront to give the taller buildings behind a view of the river. 

Architect Gennady Sirota, who contributed to iconic projects such as the Olympic Sports Complex on Prospekt Mira, was selected as the chief architect, and many other world-famous architects were attracted to Moscow to realise their visions in Moscow City.

What can you see and do at Moscow City?

Where Moscow’s cityscape was once dominated by Stalin’s Seven Sisters skyscrapers , this is no more. Moscow City is home to eight of Russia’s ten tallest buildings, six of which exceed 300 metres in height. More buildings are still under construction there today, including the One Tower (which will be Europe’s second-tallest building). Once completed, Moscow City will comprise more than 20 innovative structures.

Each of Moscow City’s skyscrapers was designed by its own architect, lending the cluster of skyscrapers a unique appearance. Aside from being a site of architectural wonder, Moscow City is a place for leisure and entertainment with over 100 cafes and restaurants, exhibition spaces, cinemas, viewing platforms, and more.

Photo by Nikita Karimov on Unsplash

Federation Tower

• East Tower: 374m, 97 floors; West Tower: 243m, 63 floors
• Completed in 2017
• Architects: Sergey Tchoban and Peter Schweger

The East Federation Tower is the tallest building in Moscow, and the second-tallest building in Europe after the Lakhta Centre in St Petersburg. Visitors can enjoy a luxurious meal of seafood, truffles or steak at restaurant ‘Sixty’ on the 62nd floor of the West Tower, or visit Europe’s highest observation deck, ‘Panorama 360’, on the 89th floor of the East Tower.

Did you know? The ice cream and chocolate shop on the 360 observation deck are the highest in the world!

• South Tower: 354m, 85 floors; North Tower: 254m, 49 floors
• Completed in 2015
• Architect: Skidmore, Owings & Merrill LLP

The South OKO Tower is the third-tallest building in Russia and Europe. Here, you can visit ‘Ruski’ to dine on hearty Russian cuisine cooked on a real Russian stove, and have a drink in the ice bar. Alternatively, visit restaurant, nightclub and performance space ‘Birds’; the restaurant is the highest in Europe, situated on the 86th floor roof terrace alongside an observation deck. The OKO Towers are also home to karaoke club ‘City Voice’.

Did you know? Underneath OKO Towers is the largest underground parking in Europe, with 16 levels and 3,400 parking spaces.

Mercury Tower

• 339m tall, 75 floors
• Architects : Mikhail Posokhin, Frank Williams, Gennady Sirota

Another multifunctional skyscraper, which was designed as the first truly ‘green’ building in Moscow. The Mercury Tower has a distinct geometric shape and copper-coloured glazing, and was the tallest building in Europe upon completion. Visit ‘More i myaso’ (Sea and meat) on the first floor of the tower to enjoy European and Mediterranean cuisine whilst surrounded by greenery. On the 2nd and 40th floors a modern art gallery, the ‘ILONA-K artspace’, has just opened.

City of Capitals

• Moscow Tower: 302m, 76 floors; St Petersburg Tower: 257m, 65 floors
• Completed in 2009
• Architect: Bureau NBBJ

The unique geometric design of the City of Capitals towers resembles stacks of rotating blocks, and is rooted in Constructivism of the early Soviet period (many Soviet Constructivist buildings can be found in Moscow). Visitors to the Moscow Tower can enjoy a range of cuisines – traditional Italian dishes on the summer terrace of ‘Tutto Bene’, Panasian cuisine in the tropical luxury of the ‘Bamboo Bar’ on the 1st floor’, and poke or smoothie bowls at ‘Soul in the Bowl’ cafe on the 80th floor.

Tower on the Embankment

• Tower A: 84m; Tower B:127m; Tower C: 268m, 61 floors
• Completed in 2007
• Architects: Vehbi Inan and Olcay Erturk

After completion, the Tower on the Embankment was the tallest building in Europe, and is now the 13th tallest. It houses the headquarters of several large Russian and international  companies, including IBM and KPMG. There are two cafes located on the 1st floor of Tower C – self-service café ‘Obed Bufet’ (Lunch Buffet) and Bakery Chain ‘Khleb Nasushchny’ (Daily Bread).

Evolution Tower

• 255m tall, 54 floors
• Architects: Philip Nikandrov and RMJM Scotland Ltd

Evolution is Moscow City’s most recognisable tower, and the 11th tallest building in Russia. Its façade is a true architectural marvel, comprising continuous strips of curved glazing spiralling high into  the sky. According to the architect, Philip Nikandrov, the spiral shape of the tower honours centuries of architectural design in Russia, from the onion domes of St Basil's Cathedral to Vladimir Shukhov’s Tatlin Tower, a masterpiece of Constructivist design. Outside the Evolution tower is a landscaped terrace and pedestrian zone descending to the Presnenskaya Embankment, which was also designed by Nikandrov.

Did you know? Moscow’s largest wedding palace was supposed to be built on the site of the Evolution tower, though the project was abandoned.

• 239m tall, 60 floors
• Completed in 2011

Imperia’s interesting design has a curved roof and an arched glass façade. Inside the tower are various cafes including ‘City Friends’ for all-day breakfasts and light lunches, ‘Mama in the City’ for simple meals of Russian cuisine, and ‘abc kitchen’ for European and Indian-inspired dishes. Alternatively, visit ‘High Bar’ on the 56th floor for cocktails with a view. In Imperia you’ll also find the Museum of High-Rise Construction in Moscow (suitably located on the 56th floor), and the Camera Immersive Theatre.

Did you know? Inside Vystavochnaya metro station is the Metro Museum , dedicated to the history of the beautiful Moscow Metro!

• 130m tall, 26 floors
• Completed in 2001
• Architect: Boris Tkhor

Tower 2000 was Moscow City’s first tower. It stands on the opposite bank of the Moskva River, and houses a viewing platform from which visitors can admire an unparalleled panorama of Moscow City. The Bagration Bridge reaches across the river from the tower to Moscow City, and underneath are piers from where you can take boat trips.

Photo by Alexander Popov on Unsplash

Afimall is Moscow’s largest entertainment and shopping complex, home to 450 shops, cafes and restaurants, a cinema, and a virtual-reality game park. The shopping centre is located in the central section of Moscow City, and a cinema and concert hall are currently under construction there.

What’s nearby?

Sechenov Botanical Gardens: The botanical gardens of the First Moscow State Medical University was created for students’ training and research in 1946. Today it is open for free visits, and is home to a large arboretum.

Park Krasnaya Presnya: This park belonged to the Studenets estate of the Gagarin princes. It is a monument of 18th and 19th century landscaping, with Dutch ponds, ornate bridges, and tree-lined alleys. There are also sports facilities, sports equipment rental, and cafes.

Photo by Akkit  on Wikipedia

Essential information for visitors

Website: https://www.citymoscow.ru/

Email: [email protected]

Phone: +7 (495) 730-23-33

Nearest metro: Mezhdunarodnaya (closest to the skyscrapers), Delovoy Tsentr (underneath Afimall), Vystavochnaya (closest to Expocentre)

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Leaked presentation reveals Microsoft's astounding plan to ramp up data-center capacity for the AI boom

• Microsoft's data-center capacity jumped in recent quarters, a leaked internal presentation shows.
• The company is planning even faster data-center growth in the coming quarters.
• Microsoft delivered "record-level GPU capacity," according to the presentation.

Microsoft significantly expanded its data-center capacity recently and plans to ramp up growth to astounding levels going forward, according to an internal document obtained by Business Insider.

Since July 2023, the start of Microsoft's latest fiscal year, the company delivered more than 500 megawatts of new data-center capacity , the document disclosed.

This document was part of a confidential slide deck from the company's Cloud Operations and Innovation team that was presented earlier this year.

Under the heading "Commercial Cloud and AI Demands: Fueling our Expansion," the document said Microsoft surpassed 5 gigawatts of total data-center installed capacity in the first half of its latest fiscal year.

The rise of generative artificial intelligence and huge foundation models is fueling a new data-center boom . Microsoft is leading the way through its partnership with OpenAI , the startup behind ChatGPT and GPT-4 .

These AI models need to be trained on mountains of data and then fine-tuned intensely. That takes thousands of GPUs and a pile of other related gear that's housed in huge data centers. These facilities use so much power that their capacity is measured in megawatts and gigawatts of electricity.

Shaolei Ren , an electrical and computer engineering professor at the University of California, Riverside, said Microsoft's 5 gigawatts of installed data-center capacity, if fully used, would be equivalent to Hong Kong or Portugal's annual electricity consumption.

"Astonishing speed"

It doesn't stop there. The software giant laid out even more radical growth plans for its data-center empire in the document obtained by BI.

Related stories

"With a strong Commercial Cloud business, our goal is clear," Microsoft said in this part of the slide presentation.

Microsoft wants to double new data-center capacity in the second half of its fiscal year. This runs from early 2024 to the middle of this year.

In the first half of Microsoft's 2025 fiscal year, which runs from early July through the end of 2024, the company aims to "achieve 3x growth" in new data-center capacity.

This requires Microsoft to deliver more than 200 megawatts in data-center capacity every month.

"This is an astonishing speed," Ren told BI. "This is a very large data-center capacity."

Ren said Microsoft's capacity plans suggested the company was either seeing huge demand or simply wanting to stay competitive by securing future power capacity that otherwise might be taken by competitors.

He added that this also raised questions about the environmental consequences of adding such a large data-center footprint, given the carbon emissions and water consumption of the facilities.

A Microsoft spokesperson declined to comment.

'Record-level GPU capacity'

The company is also securing a record number of GPUs to handle new AI workloads in data centers.

In the second half of last year, Microsoft delivered "record-level GPU capacity," more than doubling its total installed GPU base, the document said, without mentioning actual numbers.

Microsoft's GPU footprint expanded into 39 additional data centers in this period, and the company now has "AI clusters" live in 98 locations globally.

Contact the reporter, Eugene Kim, via the encrypted-messaging apps Signal or Telegram ( +1-650-942-3061 ) or email ( [email protected] ). Reach out using a nonwork device. Check out Business Insider's source guide for other tips on sharing information securely.

Axel Springer, Business Insider's parent company, has a global deal to allow OpenAI to train its models on its media brands' reporting.

Watch: How tech layoffs could affect the economy

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