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Mining Business Plan Template

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This mining business plan template has 25 pages and is a MS Word file type listed under our business plan kit documents.

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Business Plan [YOUR COMPANY NAME] [INSERT IMAGE/LOGO] [YOUR NAME] - Owner [YOUR ADDRESS] [YOUR CITY], [YOUR STATE/PROVINCE] [YOUR ZIP/POSTAL CODE] [[email protected]] [YOUR PHONE NUMBER] [YOUR FAX NUMBER] Business Plan

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BUSINESS PLAN FOR THE MINING INDUSTRY

The Lampotal Plant is located on Ejido property in the Municipality of Veta Grande, Zacatecas, Mexico, in the town of Lampotal. The Plant’s original design was that of a 10 tank static vat leaching plant, which operated for approximately 30 years, processing approximately 200 tons a day, of material from the Spanish Colonial period, that was first processed by the mercury amalgamation process. In 1995, the Plant shut down due to continued increases in operating expenses, and the low spot market price of silver that came about in the later part of the 1980s. Each leaching tank can hold approximately 320 metric tons of tailings. Traditionally, static vat leaching plants processing this type of material, recover about 50% of the ore’s recoverable precious metals values. The final product would be a concentrated precipitate of silver, gold, mercury, copper, and other trash base metals and organic materials.

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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.

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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Business Plan for Small Scale Mining Entrepreneur

Recent estimates show that small-scale, entrepreneurial mining operations produce around 20 percent of the world’s gold, 20 percent of the total diamond weight, and about 80 percent of usable sapphires. 

Wisebusinessplans, a global leader in the business planning community, is now assisting small mine owners and operators in the quest for steady, sustainable growth through the use of effective Small Scale Mining Business plans  and goals mapping options.

“A small mining operation can make a healthy profit when managed carefully by following specific planning practices that lead to earnings protection and secure long-term business life.

” said Joseph Ferriolo,  Director of Wisebusinessplans.  “At Wise, we look at each client as an individual, one whose interests, ideas, and goals are unique to that business and we work one-on-one with every client.”

Small Scale Mining Business Plan

Wisebusinessplans’ custom-crafted mining business plan is tailor-made to showcase startup or expansion concepts as companies seek to acquire funding from investors , look to raise capital through venture capitalists, or work with private investors.

All plans include market research and custom financials that are developed for each individual company. Design experts give every mining business plan a unique, professional look and each client is entitled to a free revision to ensure the plan is done right.”

Business Planning is What we Specialize in at Wise

We feel privileged to assist men and women in the business world, such as mining entrepreneurs, who are working hard to not only make a better life for themselves but are also creating employment opportunities for others in their communities,” said Ferriolo.

Firms in this industry provide support services, on a fee or contract basis, for mining, quarrying, and oil and gas extraction. Firms may also provide services such as drilling ; taking core samples and making geological observations at prospective mine sites. Download our mining business plan sample and related business plan sample here.

Wisebusinessplans , staffed with professional MBA Business Plan writers , researchers, and financial experts, is a trusted partner for businesses across a broad spectrum of products and services. Our mission is to empower our clients to make the best possible business decisions, boost company performance and facilitate their funding success by laying the groundwork for strong businesses that excite, inspire and retain talented and exceptional employees.

A business plan for a small-scale mining entrepreneur should include sections on the executive summary, company overview, market analysis, marketing and sales strategies, operational plan, financial projections, and risk management. It should also outline the entrepreneur’s goals, target minerals, mining methods, and environmental considerations.

Market analysis for a small-scale mining business involves researching the demand for specific minerals, identifying target customers or industries, assessing competition, and understanding market trends and pricing dynamics. This information helps in determining the viability and profitability of the mining venture.

The operational plan should cover aspects such as the location and accessibility of the mining site, equipment and machinery needed, workforce requirements, safety protocols, environmental considerations, mining processes, and extraction techniques. It should also address permits, licenses, and compliance with mining regulations.

Financial projections for a small-scale mining business involve estimating startup costs, including equipment, permits, and infrastructure expenses. Additionally, projecting revenues based on expected mineral extraction volumes, pricing, and market demand. Cost considerations, such as labor, maintenance, and operational expenses, should also be factored in.

Common risks in small-scale mining include geological uncertainties, price volatility, regulatory changes, environmental impacts, and safety hazards. Risk management strategies may include conducting thorough geological surveys, maintaining diverse mineral portfolios, staying informed about market trends, complying with regulations, implementing safety protocols, and developing contingency plans for unexpected events.

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Mining Plan Template

What is a Mining Plan?

A mining strategic plan outlines the operational, financial, and environmental objectives of a mine and sets forth a plan of action to achieve them. It also provides a framework to measure progress and success, including setting achievable goals and targets. The strategy is designed to help ensure the mine is run safely and efficiently, while minimizing any environmental impact.

What's included in this Mining Plan template?

• 3 focus areas
• 6 objectives

Each focus area has its own objectives, projects, and KPIs to ensure that the strategy is comprehensive and effective.

Who is the Mining Plan template for?

The Mining Plan Template is designed to help mines of all types and sizes create a comprehensive strategy that covers their operational, financial, and environmental objectives. The template provides an easy to use framework that helps guide the process of setting achievable goals and targets, and implementing projects to achieve them. With this template, mines can create an effective strategy to help manage their operations and reach their desired results.

1. Define clear examples of your focus areas

The first step in creating a mining strategy is to define clear examples of focus areas. Focus areas are broad topics that the strategy will address, such as improving safety, increasing efficiency, or improving customer satisfaction. These areas should be aligned with the mine’s overall objectives and provide a roadmap for the strategy.

2. Think about the objectives that could fall under that focus area

After defining the focus areas, the next step is to think about the objectives that could fall under each focus area. Objectives are specific goals that the strategy will aim to achieve within each focus area. Examples of objectives could include reducing accidents, increasing production output, and increasing customer satisfaction.

3. Set measurable targets (KPIs) to tackle the objective

Once the objectives have been determined, the next step is to set measurable targets, or KPIs, to track progress and success. KPIs are metrics that will be tracked to measure the progress of the strategy and to ensure that the objectives are being met. Examples of KPIs could include reducing the number of accidents, increasing production output, or increasing customer satisfaction ratings.

4. Implement related projects to achieve the KPIs

The final step is to implement projects that will help to achieve the KPIs. Projects are specific actions that will be taken in order to reach the KPIs. Examples of projects could include increasing safety training, implementing mandatory safety equipment checks, or automating operational processes.

5. Utilize Cascade Strategy Execution Platform to see faster results from your strategy

The Cascade Strategy Execution Platform helps teams create and manage their strategies. With Cascade, teams have access to an easy to use platform to help create and implement their strategies, track progress, and measure results. Cascade also provides an array of analytics and reporting tools to help them gain insight into their strategies and make data-driven decisions.

How mining companies reach the operational excellence gold standard

“It is impressive to see what is going on in several organizations in the basic materials [including mining] industry in South America in generating an operational excellence culture that is unlocking so much potential.” This is how a senior executive at the International Shingo Conference in Orlando in May reacted after hearing about the strides mining companies are making to drive and sustain operational excellence.

About the authors

This article is a collaborative effort by Xavier Costantini , William Fookes, Patrick Neise , Ferran Pujol , Bernardo Rubinstein , and Guillem Sivecas, representing views from McKinsey’s Manufacturing and Operations Practices.

The enthusiasm is understandable given today’s increasingly challenging business environment, in which improvements in productivity and efficiency, as well as in safety and sustainability, are vital to remaining competitive. Even more important is the ability to sustain the pace of these improvements over time by fostering a culture of operational excellence.

Such cultures are the hallmark of leading companies worldwide, and are increasingly being adopted by players in the mining industry to enable them to realize the same levels of continuous improvement in productivity and efficiency as seen in top-performing companies in other sectors. Adopting a culture of operational excellence can also enable strong improvements in safety and efficiency. These efforts are beginning to pay off—several mining companies are on track to receive the Shingo Prize for operational excellence, considered a gold standard for companies to aspire to.

Inspired by these successes, mining companies can seize the opportunity to unlock the benefits of continuous improvement. This article explores how adopting a culture of operational excellence could be the key to continuous and lasting improvement in the mining industry, and the steps mining companies can take to achieve a world-class culture of operational excellence.

Why an operational excellence culture matters

Several industries, including manufacturing and business services, have experienced a steady improvement in productivity and efficiency over the last 25 years. This pace of improvement is, however, not seen in the mining industry, where productivity has largely remained steady (Exhibit 1).

While the ten largest companies in the manufacturing and business services industries have seen their productivity index grow by around 15 percent and 25 percent respectively over the past 25 years, the ten largest companies in the mining industry have seen only marginal growth of around 1 percent over the same period.

Developing a culture focused on operational excellence may be the key to helping mining companies unlock similar benefits in productivity and efficiency to those seen in other industries, despite the unique conditions and challenges it faces. An operational excellence culture can also bring strong improvements in safety and sustainability, which are important for any business, and particularly for the mining industry.

Although mining companies are often able to improve productivity and efficiency in the short term, many face challenges in sustaining these increases in productivity or keeping up the pace of improvements over time.

For example, a mining company operating in Chile implemented a transformation initiative that yielded clear improvement over five quarters, with a 12 percent increase in productivity and a 12 percent decrease in costs per year. However, the company was unable to continue along this trajectory of rapid improvement. The subsequent four quarters saw only a 1 percent improvement in production, while costs increased by 9 percent per year over the period (Exhibit 2).

Challenges to continuous improvement

There are many possible reasons why companies struggle to continue the pace of improvements in the longer term. New practices introduced by transformation efforts may not be deployed fully, for example, and may lack elements essential to their long-term utility, such as adequate coaching or follow up initiatives.

Some practices may also be simply added onto existing organizational practices without fundamentally changing them, creating an often-unwieldy proliferation of practices and processes that can actually impair productivity. And even where new practices are successfully adopted, their execution can become mechanical over time, leading to a “checking the boxes” attitude rather than a deeper engagement.

Finally, employees may lack a sense of ownership and be unable to make the connection between the relevance of their jobs beyond the activities of the organization. The resulting lack of engagement and investment, which are essential to a continuous-improvement culture, can doom the changes’ long-term impact.

The mining industry also has several unique features that may help explain why a culture of operational excellence has not yet been widely adopted. Productivity in the sector is often constrained by physical factors, such as ore quality. The industry also has a heavy focus on technical elements and capital levers rather than organizational culture and processes, while its dispersed and fragmented nature creates barriers to sharing best practices.

Nevertheless, adopting a culture of operational excellence could bring substantial benefits to mining companies by promoting continuous and sustainable improvements in productivity, safety, sustainability, and efficiency, rather than the more transitory improvements that have been captured thus far.

Technological development will, of course, continue to be important in the mining industry. However, if productivity improvements are driven by advances in technology alone, the improvements are almost certain to plateau as the benefits of any given technological advance are fully realized. To reach the next frontier in productivity and efficiency improvements, and to be able to continuously sustain such improvements, mining companies can consider following the example of leading companies in other industries by fostering a culture of operational excellence.

Attaining the gold standard in operational excellence

The top-performing organizations in several industries have been able to sustain a long-term increase in productivity largely thanks to the maturity of their operational excellence culture. The improvements in productivity tend to go hand in hand with improvements in efficiency, sustainability, and safety. These organizations have become leaders in their fields by consistently outperforming their competitors, and have several common elements that set them apart.

A clear sense of purpose can provide the bedrock for such a culture. For example, a leading industrial manufacturer which was able to diversify beyond its initial pioneering invention achieved success driven by its unified purpose of saving lives. This focus on the company’s core vision allowed it to sustain the pace of improvement and remain the leader in its industry, with a market share that grew by 20 percent from 2010 to 2020 (Exhibit 3).

Many such top-performing institutions have received recognition from the Shingo Institute, in the form of the Shingo Prize, for successfully embedding a set of principles that help to nurture cultures of operational excellence and continuous improvement. Several mining companies are now on track to joining the ranks of the prize winners, after realizing substantial value from implementing these principles.

The Shingo principles are founded on the idea that ideal results for an organization are driven by ideal behaviors, and that these ideal behaviors are in turn informed by and aligned with principles for operational excellence. Such principles can help organizations identify and understand which behaviors are important to promote a continuous improvement culture, and how to foster those behaviors. There are ten Shingo principles, grouped into three broad categories:

Cultural enablers , which include principles that encourage respect, inclusivity, leading with humility, and employee development, training, and empowerment.

Continuous improvement , which includes principles that encourage scientific thinking, an aspiration for perfection, and a focus on process.

Enterprise alignment , which includes principles that encourage a unity of purpose within an organization, alignment with the organization’s vision and purpose, systematic thinking, and emphasis on the importance of creating value for the customer.

To improve a company’s organizational culture based on these principles, its operational maturity must first be measured. The most rigorous assessments are based on direct observations by experts and detailed analysis of data that have been shown to correlate with positive business outcomes. In assessing an organization’s maturity, systems that enable behaviors aligned with the Shingo principles weigh heavily in the results (Exhibit 4).

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Top-performing companies with a strong culture of operational excellence tend to be strongly aligned to the Shingo principles, with the result that they have a clear view and purpose in the organization. Importantly, employees understand how they contribute to achieving the vision and are emotionally connected with the purpose. These organizations also tend to have leaders who lead by example, empowered teams with decision-making capabilities, responsibility dispersed throughout the organization, a focus on skills development, and an emphasis on the role of leaders in nurturing a continuous improvement culture.

Select mining companies have already begun their continuous improvement journey by applying these principles. Those that are focusing on operational excellence are seeing improvements in business results, with uplifts in production ranging from 1 to 16 percent and a reduction of safety incidents by 5 to 23 percent per annum (Exhibit 5).

Steps to adopting a culture of operational excellence in the mining industry

The first step to unlocking value through operational excellence is to embed a clear purpose and clearly defined systems to support cultural enablers, continuous improvement, and enterprise alignment.

Mining companies can consider the following actions in five focus areas as a way to drive sustained, long-term gains in productivity, efficiency, sustainability, and safety. Actions in these five areas have helped a number of mining companies create positive change for customers, employees, finances and operations, social and environmental issues, and internal capabilities.

Customer impact: Focusing on delivering a quality product to the customer, even if there is no competition for market share, and striving to meet and exceed customer expectations can create additional value for the customer.

This focus recently enabled a South American mining company in the process of implementing operational excellence principles to reduce the number of inconformity claims (which are issued when quality does not meet customer expectations) to zero within only a few years.

Training in management practices led him to a more humble leadership style. He’s now seen as a down-to-earth leader whose constant presence on the ground inspires others in their journeys.

Employee impact: Fostering an environment in which employees can thrive by promoting employee professional growth and development, well-being, equity, diversity and inclusion, and safety can create more trusting and collaborative workplaces.

By encouraging diverse and inclusive teams, a global mining company has increased employee engagement, as measured by an employee engagement and perception survey, from 75 percent to 95 percent over four years. These inclusive teams were also safer and more productive, as members felt confident enough to share their ideas and concerns, making problem solving and decision making more collaborative and effective.

At this same global mining player, the site leaders also applied the lean principle of going to the “gemba walk” (meaning to go and see the problem on site). This empowered the operations team to identify and resolve problems themselves, rather than relying on a top-down approach. This resulted in a near-eradication of risk, with incidents per million hours reducing by half.

Financial and operational impact: Ensuring employees are empowered, aligned behind, and emotionally invested in a common purpose can drive continuous improvements to reach aspirational goals. This can be achieved through good management practices.

An employee of the aforementioned South American mining company reported that the general manager’s Monday routine used to be called the “caravan of death”—focused on finding deviations. Now he fosters continuous improvement, achieving great results and increasing employee satisfaction.

Social and environmental impact: Establishing a deep connection with communities and the environment can improve organizational health. This can be achieved through a meaningful social and environmental purpose, including concrete goals to work toward.

The South American mining company made it a goal to reduce their environmental impact on local communities. Guided by this ambition, the company managed to increase its recycled waste by 120 percent. Also in this area, the global mining player was able to reduce energy consumption by more than 10 percent by tracking real-time energy consumption, visualizing deviations from planned consumption on an aggregated level, implementing a machine learning tool to apply a set of business rules to minimize consumption, and adjusting key Standard Operating Procedures (for example, standardizing washing times).

Capability impact: By recognizing their role as facilitators for employees, leaders can adopt a mindset of leading with humility, as well as promote learning and training to develop people in the organization.

The South American mining company increased its investment into employee training by increasing the number of hours spent training each employee by 75 percent over five years, embedding a culture of continuous learning across all levels of the organization.

By improving in these areas, mining companies can follow the example of emerging leaders in the industry and strive toward the levels of continuous improvement experienced in top-performing companies in other sectors.

While many mining companies have unlocked significant value from technological improvements and application of Industry 4.0, focusing on continuous improvements may prove to be the next frontier in improvements in productivity, efficiency, sustainability, and safety—enabling them to maintain the pace of change and sustain their gains into the future.

Xavier Costantini is a senior partner in McKinsey’s Montevideo office, William Fookes is a partner in the Santiago office, where Ferran Pujol is also a partner and Guillem Sivecas is an expert. Patrick Neise is a partner in the Stamford office, and Bernardo Rubinstein is a partner in the Lima office.

The authors would like to thank engagement manager Eloi Artau and associate Alejandro Bertucci for their contributions to this article.

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• Standard Business Plans
• Business Formations

Mining Company Business Plan

• Mining Reports: If the company is already established, than any mining reports or mineral test should be included in the mining business plan.  
• Experience of the team: The experience of any gold mining professionals would surely be beneficial in an gold mining business. No matter what mining sector you are involved in, you should be sure to attract professionals to your team. Be sure to include the experience of your team of professionals in your mining business plan. 
• The type of land agreements you have signed: The way you acquire the rights to mine a property is important information for an investor or a business partner. Make sure to include any documents on how you acquired the land whether it was by lease or by warranty deed or joint venture. If you have not already established your business, the business plan should describe how you will acquire property for your mining business.

Commercial Mining Outcomes

Long-term mine planning and the mine-planning process

Successful mining executives know how to set up a good planning process and they know what benefits this will bring. Most operational problems can be foreseen and avoided with good planning.

It is easy to see the costs of the technical team in the cost reports, but we mine to make money, not to save costs. The major benefits of a good planning team, and of good plans, are orders of magnitude greater than their costs—particularly from the mistakes that weren’t made and the problems that were foreseen and avoided. A good plan is like good health: you don’t notice it till you don’t have it. “Prevention is better than cure” is a truism that is just as relevant to the health of our mining operations as to the health of our bodies.

An integrated planning process, working in a hierarchy from long term to short term, is essential. Longer-term plans set the overall strategic direction. Progressively shorter-term plans provide more detail and accuracy at the front end of the longer-term plans. Approvals processes should also work from longer term to shorter term. Longer-term plans must be focussed on delivering the corporate goal in the long run. Shorter-term plans must then detail how operations in the near future will contribute to the achievement of the longer-term plans.

The Strategic Options Analysis (SOA) evaluates, at a high level, the impacts on value of all the various strategic decisions that the company can make, both separately and together. A full SOA is not normally done on an annual basis but should be reviewed annually as part of the planning cycle to ensure that the approved life-of-mine plan continues to be the best long-term plan. Major updates and reworking of the SOA should occur every three to five years.

The Life of Mine Plan (LOMP) is the formally approved long-term plan for the mine. It is selected after conducting an SOA, and is the plan identified as best delivering the corporate goal. It establishes the framework within which all other shorter-term plans are developed. The LOMP is reviewed and updated annually as part of the planning cycle, taking account of constraints identified in shorter-term plans or resulting from actual events, and changes identified in the SOA.

The Five-Year Plan (5YP) forms a critical medium-term link between the high-level strategies in the LOMP and the detailed shorter-term implementation plans. The 5YP is generated annually, with quarterly time periods modelled. Its timeframe is selected to provide sufficient “look-ahead” time for long-lead activities to be identified and adequately planned for, once they appear at the end of each new 5YP. Formal approval of the 5YP is part of the annual planning cycle. Failing to look far enough ahead is a common cause of operational problems in a mine.

The Two-Year Rolling Plan (2YP) provides a higher level of detail, supported by more-detailed engineering work, at the front end of the 5YP. It is updated quarterly with activities reported against it on a monthly basis. It is a regular ongoing part of the short-term planning process and, importantly, is not just done once a year as part of the annual budgeting cycle. The 2YP update cycle requires operators and planners to regularly look at the effects of current operating and planning issues up to two years ahead, avoiding actions that may be expedient in the short term but that create problems in the longer term. The appearance of an activity at the end of the 2YP is the flag for detailed design work to begin, with the aim of having all activities occurring in the first 12 – 18 months of each 2YP planned in detail and solutions found for any problems that have been identified. A good 2YP ensures that the mine operations will have as few unpleasant surprises as possible.

The Annual Budget (Budget) plan is simply the plan for the budget year in the version of the 2YP created three to six months before its start. Its preparation does not require any special attention or additional work, since the rolling process of plan and schedule generation and associated approvals ensures that the plan is realistic and achievable and is aligned with the corporate goal. Physical quantities in the Budget plan drive the Budget costs via appropriate cost models, which evolve in detail and accuracy in the same way as the physical plans and schedules. There are of course some formal processes that are specific to the budget, but if an integrated LOMP / 5YP / 2YP / Budget process is in place, the additional work required at budget time can be significantly less than is common at many mines.

Key performance indicators (KPIs) cascade down through the organizational structure to ensure the ultimate delivery of the LOMP. KPIs for more-senior operating managers (and market analysts?) focus not on short-term production measures but rather on measures related to the LOMP. Focussing on short-term plans and one-year budget KPIs is almost guaranteed to result in outcomes that are at variance with the optimal LOMP and activities that are suboptimal and value-destroying, not value-adding.

Our knowledge of rock conditions and ore grades will never be as complete as we might like these to be, so we will always have to respond to unexpected situations in the short term. To use a first aid analogy, we must attend first to breathing and bleeding to maintain life, and can worry about fixing up broken bones later. There may therefore be times when we are focussed solely on the short-term survival of our operation. But this should be the exception, not the rule, and having survived the emergency, our day-to-day actions should deliberately contribute to the long-term good health and well-being of the operation. To extend the safety analogy, continual accidents trigger a review of operating practices and changes are made to prevent reoccurrence. In the same way, continual short-term operational problems cause us to ask what is wrong with our planning systems if we are always operating in crisis mode. The best-planned mine will have a problem from time to time, but it does not continually lurch from crisis to crisis.

So to summarize, what is long-term planning, how does it differ from short-term planning, and what are its benefits? In one sense, if we only look at the processes involved in developing plans—gathering geological and geotechnical information, generating mine designs, scheduling mining and treatment operations, and forecasting cash flows, etc.—the main differences between short and long-term planning are the timeframe and the level of detail and accuracy. The more important difference is the underlying motivation and ethos of the planning process; whether the focus is on long-term value generation or short-term achievement of a set of annual targets.

Long-term planning clearly puts the focus on identifying the plan that delivers the corporate goals in the long term, with all shorter-term plans focussed on achieving the long-term plan. In the absence of a proper long-term planning process, short-term thinking leads to sterilization of Mineral Resources, lower production rates, and less efficient and profitable operations.

Where does your planning process fit?

Text attributed to Hall.

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Mining Company Marketing Plan Template

• Great for beginners
• Ready-to-use, fully customizable Subcategory
• Get started in seconds

Are you a marketing professional in the mining industry looking to level up your marketing efforts? Look no further! ClickUp's Mining Company Marketing Plan Template is here to help you streamline your marketing strategies and drive business growth in the competitive mining industry.

With this template, you can:

• Identify your target markets and refine your marketing strategies for maximum impact.
• Develop compelling campaigns to promote your mining products and services, ensuring your message reaches the right audience.
• Establish and highlight your competitive advantages to stand out from the crowd and attract more customers.
• Build brand awareness and strengthen your brand presence in the mining industry.
• Track your marketing efforts and measure their effectiveness to continuously optimize your campaigns.

Ready to take your mining company's marketing to the next level? Get started with ClickUp's Mining Company Marketing Plan Template today!

Benefits of Mining Company Marketing Plan Template

Mining Company Marketing Plan Templates offer a comprehensive framework for marketing professionals in the mining industry to create effective marketing strategies. Here are some of the benefits of using this template:

• Streamline marketing efforts by providing a structured roadmap for planning and executing marketing campaigns
• Identify target markets and understand their specific needs and preferences
• Develop strategies to promote mining products and services and differentiate from competitors
• Establish a strong brand presence and build brand awareness within the mining industry
• Drive customer acquisition and business growth by implementing targeted marketing initiatives
• Track and evaluate marketing performance to optimize future campaigns and maximize ROI.

Main Elements of Mining Company Marketing Plan Template

To effectively market your mining company, utilize ClickUp's Mining Company Marketing Plan template which includes the following key elements:

• Custom Statuses: Track the progress of your marketing tasks with statuses such as Cancelled, Complete, In Progress, Needs Input, Planned, and To Do.
• Custom Fields: Utilize 6 custom fields including Quarter, Task Type, Impact, Progress, Percent Completion, and Effort, to add specific details to each marketing task and measure its impact.
• Custom Views: Access 5 different views to manage your marketing plan effectively. These views include Key Results for tracking important metrics, Timeline for visualizing task deadlines, Getting Started Guide for onboarding new team members, Objectives for setting marketing goals, and Progress Board for monitoring task progress.
• Collaboration Tools: Leverage ClickUp's collaboration features such as task comments, @mentions, file attachments, and notifications to streamline communication and enhance teamwork.

How to Use Marketing Plan for Mining Company

If you're looking to promote your mining company and attract new clients, using a marketing plan template can help you stay organized and focused. Follow these steps to effectively utilize the Mining Company Marketing Plan Template in ClickUp:

1. Identify your target audience

Before you can start marketing your mining company, it's crucial to identify your target audience. Consider the industries or businesses that are most likely to require your mining services, such as construction companies, energy producers, or manufacturing facilities. Understanding your audience will help you tailor your marketing efforts to reach the right people.

Use custom fields in ClickUp to categorize and track different target audience segments based on their specific needs and preferences.

2. Set clear marketing goals

Determine what you want to achieve with your marketing efforts. Are you looking to increase brand awareness, generate leads, or drive sales? Setting clear and measurable goals will help you stay focused and evaluate the success of your marketing plan.

Create Goals in ClickUp to define and track your marketing objectives, such as increasing website traffic by a certain percentage or acquiring a specific number of new clients.

3. Develop your marketing strategies

Once you have identified your target audience and set your goals, it's time to develop the strategies that will help you reach them. Consider different marketing channels and tactics that are relevant to the mining industry, such as content marketing, search engine optimization (SEO), social media advertising, or attending industry trade shows.

Use the Board view in ClickUp to create cards for each marketing strategy and track the progress and implementation of each tactic.

4. Implement and track your marketing activities

With your strategies in place, it's time to put your marketing plan into action. Start executing your marketing activities, whether it's creating content, running ads, or reaching out to potential clients. Be sure to track the performance of each activity to understand what's working and what needs adjustment.

Use the Dashboards in ClickUp to monitor key marketing metrics, such as website traffic, lead generation, conversion rates, and return on investment (ROI). This will help you make data-driven decisions and optimize your marketing efforts for better results.

By following these steps and utilizing the Mining Company Marketing Plan Template in ClickUp, you can effectively promote your mining company and attract new clients in a strategic and organized manner.

Get Started with ClickUp’s Mining Company Marketing Plan Template

Marketing professionals working for a mining company can use the Mining Company Marketing Plan Template to effectively strategize and execute marketing campaigns within the mining industry.

First, hit “Add Template” to sign up for ClickUp and add the template to your Workspace. Make sure you designate which Space or location in your Workspace you’d like this template applied.

Next, invite relevant members or guests to your Workspace to start collaborating.

Now you can take advantage of the full potential of this template to create a comprehensive marketing plan for your mining company:

• Use the Key Results View to track and measure the success of your marketing objectives
• The Timeline View will help you plan and visualize the timeline for each marketing campaign
• Refer to the Getting Started Guide View to find step-by-step instructions on how to use the template effectively
• The Objectives View will provide a clear overview of your marketing goals and objectives
• Monitor progress and update tasks in the Progress Board View to keep track of the status of each marketing campaign
• Organize tasks into six different statuses: Cancelled, Complete, In Progress, Needs Input, Planned, To Do, to stay organized and keep stakeholders informed
• Analyze data and make data-driven decisions to ensure maximum effectiveness of your marketing strategies

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Stone Crusher and Quarry Business Plan [Sample Template]

By: Author Tony Martins Ajaero

Home » Business Plans » Construction & Engineering

Are you about starting a granite mining business? If YES, here is a complete sample stone crusher & quarry business plan template & FREE feasibility report.

Okay, so we have considered all the requirements for starting a stone crusher & quarry business. We also took it further by analyzing and drafting a sample stone & granite marketing plan template backed up by actionable guerrilla marketing ideas for quarry businesses. So let’s proceed to the business planning section.

Why Start a Stone Crusher & Quarry Business?

As an aspiring entrepreneur with an interest in the construction cum building industry who is looking towards starting a business, one of your best options in making a launch into the industry is to start a stone quarry business. This business does pretty well in some parts of the world and wouldn’t do well in others.

In Nigeria for instance; Part of what you would need to launch this type of business is your mining license, your excavating, stone crushing and selection machines, trucks cum tippers and employees. A stone quarry business isn’t a child’s play at all as it requires that you are armed with all the basic knowledge about the industry and how you plan to run your Quarry company.

In as much as people can start this business at a local level on a small scale, it will be a wise decision to write a good business plan document- especially if you choose to start the business on a large scale and as a standard business that can employ more than a handful of people. Below is a sample stone quarry company business plan that will help you successfully launch your own business;

A Sample Stone Quarry Business Plan Template

1. industry overview.

A stone quarry business is a business that involves the excavation of different dimension of stones, rocks, ripraps, construction aggregates, slates and gravels for the constructions industry.

Players in this industry basically extract rocks from an open-pit mine and the rocks are crushed to produce construction aggregate, which is them screened into different size categories either for immediate use in construction sites, or taken for further processing.

No doubt, the stone quarry line of business is a key sector in the building cum construction industry; they supply important building cum construction raw materials. There are locations where such business can hardly thrive either due to lack of natural resources (rocks and quarry mines) or due to environment hazard in such locations.

The Stone Quarry line of business is indeed a thriving line of business and pretty much active in key locations in North America, Africa, Asia and South America they generates several billions of US dollars annually from several registered and unregistered small – scale, medium scale and big stone quarry companies scattered all around Africa, Asia, North America and South America.

This line of business is responsible for the employment loads of people directly and indirectly all around the world. Any aspiring entrepreneur that is considering starting a stone quarry business whether on a small scale or in a large scale should ensure that he or she, obtains all the necessary permits from both the local government, state government and the federal government.

He or she should ensure conducts thorough market survey and feasibility studies so as to get it right. The truth is that, this type of business do pretty well when it is strategically positioned. Any location that is close to communities with rich deposit of stone mines cum rocks.

Over and above, stone quarry business is a profitable business venture and it is open for any aspiring entrepreneur to come in and establish his or her business; you can chose to start on a small scale on a large scale with robust distribution network all across major construction sites and cement factories in Nigeria.

2. Executive Summary

Joseph Ileaboya & Sons Stone Quarry Company is a standard and licensed stone quarry company that will be based in Okpella – Edo State, Nigeria. We are registered under the Nigerian Corporate Affairs Commission (CAC).

Although we intend starting out on a small scale as a cottage company, but that will not in any way stop us from maximizing our potential in the stone quarry line of business by supplying building and decorative stones, crushed granite, dimension granite, paving slabs, slates, gravels, aggregates – stones, rocks, ripraps, limestone, lime burning (calcimine) – used as cement with sand, to make mortar and also in agriculture for the purpose of improving soil quality and cement et al not just to small construction companies cum sites but to larger construction companies cum sites all across Nigeria.

Our business goal as a stone quarry company is to become the number one choice of construction companies cum construction sites in Nigeria where we intend supplying building and decorative stones, crushed granite, dimension granite, paving slabs, slates, gravels, aggregates – stones, rocks, ripraps, limestone, lime burning (calcimine) – used as cement with sand, to make mortar and also in agriculture for the purpose of improving soil quality and cement et al.

As a business, we are willing to go the extra mile to invest in owning our own world – class and environmental friendly stone quarry and also to hire efficient and dedicated employees. We have been able to secure permits and license from all relevant departments both at local government level and state level in Edo state.

Joseph Ileaboya & Sons Stone Quarry Company is set to redefine how standard stone quarry business should be run, not just in Edo State, but also in the whole of the Nigeria. This is why we have put plans in place for continuous training of all our staff at regular interval.

No doubt the demand for dimension of building and decorative stones, crushed granite, dimension granite, paving slabs, slates, gravels, aggregates – stones, rocks, ripraps, limestone, lime burning (calcimine) – used as cement with sand, to make mortar and also in agriculture for the purpose of improving soil quality and cement et al is not going to plummet any time soon which is why we have put plans in place to continue to explore all available market around construction sites where we intend supplying our products.

In the nearest future, we will ensure that we create a wide range of distribution channels all across Nigeria. With that, we know we will be able to maximize profits in our business.

Joseph Ileaboya & Sons Stone Quarry Company will at all-time demonstrate her commitment to sustainability, both individually and as a firm, by actively participating in our communities and integrating sustainable business practices wherever possible.

We will ensure that we hold ourselves accountable to the highest standards by meeting our customers ‘needs precisely and completely. We will cultivate a working environment that provides a human, sustainable approach to earning a living, and living in our world, for our partners, employees and for our customers.

Joseph Ileaboya & Sons Stone Quarry Company is a family business that will be owned by Mr. Joseph Ileaboya and his immediate family members. Mr. Joseph Ileaboya is an astute businessman who has been able to start and grow several businesses before starting Joseph Ileaboya & Sons Stone Quarry Company.

He has a degree in Civil Engineering from the University of Benin, Edo State. He has well over 10 years’ hands on experience in the construction cum building industry prior to starting Joseph Ileaboya & Sons Stone Quarry Company

3. Our Products and Services

Joseph Ileaboya & Sons Stone Quarry Company was established with the aim of maximizing profits in the construction cum building industry. We want to compete favorably with the leaders in the industry which is why we have but in place a competent team that will ensure that our products are of highest standard.

We will work hard to ensure that Joseph Ileaboya & Sons Stone Quarry Company is not just accepted in Edo State but also in other states all across Nigeria where we intend supplying our products. Our products are listed below;

• Building and decorative stones
• Crushed granite
• Dimension granite
• Paving Slabs and slates
• Aggregates – stones
• Lime burning (Calcimine) – Used as cement with sand, to make mortar and also in agriculture for the purpose of improving soil quality

4. Our Mission and Vision Statement

• Our vision as a stone quarry company is to engage in national distribution of building and decorative stones, crushed granite, dimension granite, paving slabs, slates, gravels, aggregates – stones, rocks, ripraps, limestone, lime burning (calcimine) – used as cement with sand, to make mortar and also in agriculture for the purpose of improving soil quality and cement et al across major construction sites in Nigeria.
• Our mission is to establish a standard and world class – environmental friendly stone quarry company that in our own capacity will favorably compete with leaders in the industry on the global stage. We want to build a stone quarry company that will be listed amongst the top 5 stone quarry company brands in Africa.

Our Business Structure

Ordinarily, we would have succeeded in running a stone quarry business with few employees, but as part of our plan to build a top flight stone quarry production company in Okpella – Edo State, we have perfected plans to get it right from the onset which is why we are going the extra mile to ensure that we have competent employees to occupy all the available positions in our company.

The picture of the kind of stone quarry company we intend building and the business goals we want to achieve is what informed the amount we are ready to spend to ensure that we build a business with dedicated workforce and robust distribution network.

In view of that, we have decided to hire qualified and competent hands to occupy the following positions at Joseph Ileaboya & Sons Stone Quarry Company;

• Chief Executive Officer (Owner)
• Stone Quarry Manager/Quality Assurance Manager

Human Resources and Admin Manager

• Sales and Marketing Officer
• Accountants/Cashiers

Stone Quarry Casual Workers

• Truck/Tipper Drivers
• Customer Service Executives

5. Job Roles and Responsibilities

Chief Baker/Chief Executive Officer – CEO (Owner):

• Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results; developing incentives; developing a climate for offering information and opinions; providing educational opportunities.
• Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
• Responsible for fixing prices and signing business deals
• Responsible for providing direction for the business
• Responsible for signing checks and documents on behalf of the company
• Evaluates the success of the organization

Stone Quarry Manager

• Responsible for overseeing the smooth running of the stone quarry site
• Makes sure that quality is maintained at all times
• Maps out strategy that will lead to efficiency amongst workers in the stone quarry
• Responsible for training, evaluation and assessment of the workforce
• Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
• Ensures that the stone quarry site meets the expected safety and health standard at all times.
• Responsible for overseeing the smooth running of HR and administrative tasks for the organization
• Updates job knowledge by participating in educational opportunities; reading professional publications; maintaining personal networks; participating in professional organizations.
• Enhances department and organization reputation by accepting ownership for accomplishing new and different requests; exploring opportunities to add value to job accomplishments.
• Defines job positions for recruitment and managing interviewing process
• Carries out staff induction for new team members
• Responsible for training, evaluation and assessment of employees
• Oversees the smooth running of the daily business activities.

Sales and Marketing Manager

• Manages external research and coordinate all the internal sources of information to retain the organizations’ best customers and attract new ones
• Models demographic information and analyze the volumes of transactional data generated by customer purchases
• Identifies, prioritize, and reach out to new partners, and business opportunities et al
• Responsible for supervising implementation, advocate for the customer’s needs, and communicate with customers
• Develops, executes and evaluates new plans for expanding increase sales
• Documents all customer contact and information
• Represents the company in strategic meetings
• Helps to increase sales and growth for the company
• Responsible for operating stone crusher, cement mixers, excavators and other machines and equipment in the stone quarry site
• Responsible for the production of building and decorative stones, crushed granite, dimension granite, paving slabs, slates, gravels, aggregates – stones, rocks, ripraps, limestone, lime burning (calcimine) – used as cement with sand, to make mortar and also in agriculture for the purpose of improving soil quality and cement et al
• Assist in loading and offloading of our products into and out of the tippers /trucks

Accountant/Cashier

• Responsible for preparing financial reports, budgets, and financial statements for the organization
• Provides managements with financial analyses, development budgets, and accounting reports; analyzes financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions.
• Responsible for financial forecasting and risks analysis.
• Performs cash management, general ledger accounting, and financial reporting
• Responsible for developing and managing financial systems and policies
• Responsible for administering payrolls
• Ensures compliance with taxation legislation
• Handles all financial transactions for the organization
• Serves as internal auditor for the organization

Distribution Truck/Tipper Drivers

• Assist in loading and unloading Building and decorative stones, crushed granite, dimension granite, paving Slabs, aggregates – stones, limestone, lime burning (Calcimine) – Used as cement with sand, to make mortar and also in agriculture for the purpose of improving soil quality and cement et al.
• Maintain a logbook of their driving activities to ensure compliance with federal regulations governing the rest and work periods for operators.
• Keep a record of vehicle inspections and make sure the truck is equipped with safety equipment
• Assist the transport and logistics manager in planning their route according to a delivery schedule.
• Local-delivery drivers may be required to sell products or services to stores and businesses on their route, obtain signatures from recipients and collect cash.
• Transport finished materials over land to and from stone quarry site to construction sites all across Nigeria
• Inspect vehicles for mechanical items and safety issues and perform preventative maintenance
• Comply with truck driving rules and regulations (size, weight, route designations, parking, break periods etc.) as well as with company policies and procedures
• Collect and verify delivery instructions
• Report defects, accidents or violations

Client Service Executive

• Ensures that all contacts with customer (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
• Through interaction with customers on the phone, uses every opportunity to build client’s interest in the company’s products and services
• Manages administrative duties assigned by the store manager in an effective and timely manner
• Consistently stays abreast of any new information on Joseph Ileaboya & Sons Stone Quarry Company, promotional campaigns etc. to ensure accurate and helpful information is supplied to customers when they make enquiries

6. SWOT Analysis

Because of our drive for excellence when it comes to running a standard stone quarry company, we were able to engage some of the finest business consultants in Nigeria to look through our business concept and together we were able to critically examine the prospect of the business and to assess ourselves to be sure we have what it takes to run a standard stone quarry business that can compete favorably in the stone quarry line of business in Africa.

In view of that, we were able to take stock of our strengths, our weakness, our opportunities and also the threats that we are likely going to be exposed to in Nigeria . Here is a of what we got from the critically conducted SWOT Analysis Joseph Ileaboya & Sons Stone Quarry Company;

Our strength lies in the fact that we have state of the art stone quarry and processing facility and equipment that has positioned us to meet the demand of building and decorative stones, crushed granite, dimension granite, paving slabs, slates, gravels, aggregates – stones, rocks, ripraps, limestone, lime burning (calcimine) and cement et al in Nigeria even if the demand tripled over night or if we have a massive order to meet and emergency need.

Another factor that counts to our advantage is the background of our Chief Executive Office; he has a robust experience in the industry and also a pretty good academic qualification to match the experience acquired which has placed her amongst the top flight business men in Nigeria.

We are not ignoring the fact that our team of highly qualified and dedicated workers will also serve as strength for our organization

We do not take for granted the facts that we have weaknesses. In fact, the reality that we are setting up a stone quarry company in a town with other smaller and larger stone quarry businesses might likely pose a challenge for us in breaking into the already saturated market in Nigeria.

In essence our chosen location might be our weakness. But nevertheless, we have plans to launch out with a big bang. We know with that, we will be able to create a positive impression and we have a proper handle when it comes to building on already gather momentum.

• Opportunities:

The opportunities available to us are unlimited. There are loads of construction sites in Nigeria and all what we are going to do to push our products to them is already perfected. Okpella in Edo state is just ideal for chalk stone quarry business because the rich deposit of rocks and stone mines and readily available and affordable labor in Okpella – Edo State.

The threat that is likely going to confront us is the fact that we are competing with already established stone quarry companies in Edo State and also there are other entrepreneurs who are likely going to launch similar business within the location of our business.

Of course, they will compete with us in winning over the available market. Another threat that we are likely going to face is unfavorable government policies and economic downturn. Usually economic downturn affects purchasing / spending powers and unfavorable government policies.

7. MARKET ANALYSIS

• Market Trends

It is common trend in the stone quarry line of business to find stone quarry companies positioning their business in locations and communities where they can easily have access to rocks and stone mines and labor.

If you make the mistake of positioning this type of business in a location where you would have to travel a distance before you can access rocks and stone mines in commercial quantities, then you would have to struggle to make profits and maintain your overhead and logistics.

So also, another trend in this line of business is that most registered and well organized stone quarry companies look beyond the market within their locations or state; they ensure that they strike business deals with leading construction companies in Nigeria.

The truth is that if as stone quarry company you are able to become a vendor to one or more construction giants in Nigeria, you will always continue to smile to the bank.

8. Our Target Market

When it comes to supplying product from a stone quarry, there is indeed a wide range of available customers. In essence, our target market can’t be restricted to just a group of people or organizations. This goes to show that the target market for products from a stone quarry companies and far reaching, you can create your own make niche yourself to serve a specific purpose.

In view of that, we have conducted our market research and we have ideas of what our target market would be expecting from us.

We are in business to engage in supply of building and decorative stones, crushed granite, dimension granite, paving slabs, slates, gravels, aggregates – stones, rocks, ripraps, limestone, lime burning (calcimine) and cement et alto the following organizations;

• Building and construction companies
• Road construction companies
• Cement production plants
• Blocks molding companies

Our Competitive Advantage

The fact that anybody with interest in the stone quarry business can decide obtain the required license and permit to start the business means that the business is open to all and sundry hence it is expected that there will be high – level competition in the industry.

This is so because the technology involved in stone quarry line of business is not complicated. As a standard and licensed stone quarry company, we know that gaining a competitive edge requires a detailed analysis of the demographics of the surrounding area and the nature of existing competitors.

And even if you are successful at first, new competitors could enter your market at any time to steal your regular customers. Hence we will not hesitate to adopt successful and workable strategies from our competitors.

We are going to be one of the very few stone quarry companies in Okpella – Edo State that will also engage in distribution of building and decorative stones, crushed granite, dimension granite, paving slabs, slates, gravels, aggregates – stones, rocks, ripraps, limestone, lime burning (calcimine) and cement et al all across Nigeria.

Another competitive advantage that we have is the vast experience of our management team, we have people on board who are highly experienced and understands how to grow business from the scratch to becoming a national phenomenon.

Our large and robust distribution network and of course our excellent customer service culture will definitely count as a strong strength for the business.

Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category (startups stone quarry companies) in the industry, meaning that they will be more than willing to build the business with us and help deliver our set goals and achieve all our aims and objectives.

We will also give good working conditions and commissions to freelance sales agents that we will recruit from time to time.

9. SALES AND MARKETING STRATEGY

• Sources of Income

Joseph Ileaboya & Sons Stone Quarry Company is established with the aim of maximizing profits in the construction cum building industry both in Edo State and throughout key cities in Nigeria. We are going to go all the way to ensure that we do all it takes to sell our products to a wide range of customers.

Joseph Ileaboya & Sons Stone Quarry Company will generate income by simply supplying the following;

10. Sales Forecast

One thing is certain when it comes to stone quarry business, if your business is strategically positioned and you have good relationship with players in the construction industry, you will always attract customers cum sales and that will sure translate to increase in revenue generation for the business.

We are well positioned to take on the available market in Nigeria and we are quite optimistic that we will meet our set target of generating enough income / profits from the first six month of operations and grow the business and our clientele base.

We have been able to critically examine the stone quarry line of business and we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projections are based on information gathered on the field and some assumptions that are peculiar to startups in Edo State – Nigeria.

Below are the sales projections for Joseph Ileaboya & Sons Stone Quarry Company, it is based on the location of our business and other factors as it relates to small scale and medium scale stone quarry company start – ups in Nigeria;

• First Fiscal Year-: N1million
• Second Fiscal Year-: N2.5Million
• Third Fiscal Year-: N5Million

N.B : This projection is done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor offering same product and customer care services as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.

• Marketing Strategy and Sales Strategy

Before choosing a location to start Joseph Ileaboya & Sons Stone Quarry Company, we conduct a thorough market survey and feasibility studies in order for us to be able to be able to penetrate the available market in Nigeria. We have detailed information and data that we were able to utilize to structure our business to attract the numbers of customers we want to attract per time and also for to compete with other stone quarry companies.

We hired experts who have good understanding of the stone line of business to help us develop marketing strategies that will help us achieve our business goal of winning a larger percentage of the available market for our products.

In other to continue to be in business and grow, we must continue to sell our products to the available market which is why we will go all out to empower or sales and marketing team to deliver our corporate sales goals. In summary, Joseph Ileaboya & Sons Stone Quarry Company will adopt the following sales and marketing approach to sell our chalks;

• Introduce our business by sending introductory letters to construction cum building companies, building contractors and other stakeholders both in Nigeria
• Open our business with a party so as to capture the attention of residence who are our first targets
• Engage in road show in targeted communities  from time to time
• Advertise our products in community based newspapers, local TV and radio stations
• List our business and products on yellow pages ads  (local directories)
• Leverage on the internet to promote our product cum business
• Engage in direct marketing and sales
• Encourage the use of Word of mouth marketing (referrals)

11. Publicity and Advertising Strategy

Regardless of the fact that our stone quarry company is a standard one that can favorably compete with other leading stone quarry companies in Nigeria and in any part of the world, we will still go ahead to intensify publicity for all our products and brand. We are going to explore all available means to promote Joseph Ileaboya & Sons Stone Quarry Company.

Joseph Ileaboya & Sons Stone Quarry Company has a long term plan of exporting our product all across the Nigeria. This is why we will deliberately build our brand to be well accepted in Okpilla – Edo State before venturing out to other cities all across Nigeria.

As a matter of fact, our publicity and advertising strategy is not solely for selling our products but to also effectively communicate our brand. Here are the platforms we intend leveraging on to promote and advertise Joseph Ileaboya & Sons Stone Quarry Company:

• Place adverts on both print (community based newspapers and magazines) and electronic media platforms
• Sponsor relevant community programs
• Leverage on the internet and social media platforms like; Instagram, Facebook , twitter, et al to promote our brand
• Install our Bill Boards on strategic locations all around major communities in Nigeria
• Engage in road show from time to time in targeted communities
• Distribute our fliers and handbills in target areas
• Position our Flexi Banners at strategic positions in the location where we intend getting customers to start patronizing our chalks.
• Ensure that all our staff members wear our customized clothes, and all our official cars and distribution trucks/tippers are customized and well branded.

12. Our Pricing Strategy

At Joseph Ileaboya & Sons Stone Quarry Company we will keep the prices of our products below the average market rate for all of our customers by keeping our overhead low and by collecting payment in advance from well – established construction companies that would require constant supply of building and decorative stones, crushed granite, dimension granite, paving slabs, slates, gravels, aggregates – stones, rocks, ripraps, limestone, lime burning (calcimine) and cement et al.

In addition, we will also offer special discounted rates to all our customers at regular intervals. We are aware that there are some one – off supply contracts especially from government contractors or construction giants which are always lucrative, we will ensure that we abide by the pricing model that is expected from contractors or organizations that bid for such contracts.

• Payment Options

The payment policy adopted by Joseph Ileaboya & Sons Stone Quarry Company is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the Federal Republic of Nigeria.

Here are the payment options that Joseph Ileaboya & Sons Stone Quarry Company will make available to her clients;

• Payment via bank transfer
• Payment with cash
• Payment via online bank transfer
• Payment via Point of Sale Machines (POS)
• Payment via mobile money platforms
• Payment via check
• Payment via bank draft

In view of the above, we have chosen banking platforms that will enable our client make payment for farm produces purchase without any stress on their part. Our bank account numbers will be made available on our website and promotional materials to clients who may want to deposit cash or make online transfer for the purchase of our products.

13. Startup Expenditure (Budget)

In setting up any business, the amount or cost will depend on the approach and scale you want to undertake. If you intend to go big by renting a place, then you would need a good amount of capital as you would need to ensure that your employees are well taken care of, and that your facility is conducive enough for workers to be creative and productive.

This means that the start-up can either be low or high depending on your goals, vision and aspirations for your business. The machines, tools and equipment that will be used are nearly the same cost everywhere, and any difference in prices would be minimal and can be overlooked.

As for the detailed cost analysis for starting a stone quarry business; it might differ in other countries due to the value of their money. We know that no matter where we intend starting our stone quarry company, we would be required to fulfill most of the items listed below;

• The Fee for registering the business (venture) in Nigeria –N15,000
• Legal expenses for obtaining licenses and permits as well as the accounting services (software, P.O.S machines and other software) – N30,000
• Marketing promotion expenses for the grand opening of Joseph Ileaboya & Sons Stone Quarry Company – N150,000
• Cost for hiring Business Consultant – N50,000
• Insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – N50,000
• Cost for payment of rent for 12 month and renovation inclusive – N240,000
• Other start-up expenses including stationery and phone and utility deposits – N5,000
• Operational cost for the first 3 months (salaries of employees, payments of bills et al) – N300,000
• The cost for machines, equipment and start-up inventory (Stone crusher, excavators, separator machines and other stone quarry machines, equipment and tools) – N320,000
• Cost for store equipment (cash register, security, ventilation, signage) – N10,000
• Cost of purchase of distribution trucks/tippers – N750,000
• The cost for the purchase of furniture and office equipment (Computers, Printers, Telephone, Fax Machines, tables and chairs et al) – N150,000
• The cost of Launching a Website – N25,000
• The cost for our opening party – N20,000
• Miscellaneous – N10,000

We would need an estimate of N2million to successfully set up a standard and world class stone quarry business. Please note that this amount includes the salaries of all the staff for the first 3 month of operation.

Generating Funding/Startup Capital for Joseph Ileaboya & Sons Stone Quarry Company

No matter how fantastic your business idea might be, if you don’t have the required money to finance the business, the business might not become a reality. Finance is a very important factor when it comes to starting a business such as stone quarry business.

No doubt raising start – up capital for a business might not come cheap, but it is a task that an entrepreneur must go through.

Joseph Ileaboya & Sons Stone Quarry Company is a family business that is owned and financed by Mr. Joseph Ileaboya and his immediate family members. They do not intend to welcome any external business partner which is why he has decided to restrict the sourcing of the start – up capital to 3 major sources.

These are the areas we intend generating our start – up capital;

• Generate part of the start – up capital from personal savings and sell of stocks
• Source for soft loans from family members and friends
• Apply for loan from my Bank

N.B: We have been able to generate about N500,000 (Personal savings N400,000 and soft loan from family members N100,000) and we are at the final stages of obtaining a loan facility of N1.5 million from our bank. All the papers and document have been signed and submitted, the loan has been approved and any moment from now our account will be credited with the amount.

14. Sustainability and Expansion Strategy

The future of a business lies in the numbers of loyal customers that they have the capacity and competence of the employees, their investment strategy and the business structure. If all of these factors are missing from a business (company), then it won’t be too long before the business close shop.

One of our major goals of starting Joseph Ileaboya & Sons Stone Quarry Company is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running.

We know that one of the ways of gaining approval and winning customers over is to retail our products a little bit cheaper than what is obtainable in the market and we are well prepared to survive on lower profit margin for a while.

Joseph Ileaboya & Sons Stone Quarry Company will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and retraining of our workforce is at the top burner.

As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of three years or more. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.

Check List/Milestone

• Business Name Availability Check:>Completed
• Business Registration: Completed
• Opening of Corporate Bank Accounts: Completed
• Securing Point of Sales (POS) Machines: Completed
• Opening Mobile Money Accounts: Completed
• Opening Online Payment Platforms: Completed
• Application and Obtaining Tax Payer’s ID: In Progress
• Application for business license and permit: Completed
• Purchase of Insurance for the Business: Completed
• Leasing of a facility and renovating the facility as well: In Progress
• Conducting Feasibility Studies: Completed
• Generating capital from family members: Completed
• Applications for Loan from the bank: In Progress
• writing of business plan: Completed
• Drafting of Employee’s Handbook: Completed
• Drafting of Contract Documents and other relevant Legal Documents: In Progress
• Design of The Company’s Logo: Completed
• Graphic Designs and Printing of Packaging Marketing / Promotional Materials: In Progress
• Recruitment of employees: In Progress
• Purchase of the needed stone quarry machines and equipment, furniture, racks, shelves, computers, electronic appliances, office appliances and CCTV: In progress
• Creating Official Website for the Company: In Progress
• Creating Awareness for the business both online and around the community: In Progress
• Health and Safety and Fire Safety Arrangement (License): Secured
• Opening party / launching party planning: In Progress
• Establishing business relationship with construction companies, contractors and other stakeholders in the construction cum building industry: In Progress
• Purchase of tippers and delivery trucks: Completed

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More From Forbes

Recycling holds the key to making mining companies more competitive.

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Founder & CEO of Alp Bora & Co. , Alp Bora talks about mining, sustainability and corporate culture.

There's a familiar saying in farming: "If you eat, you're involved in agriculture." Similarly, in mining, the adage goes, "If it's not grown, it's mined." From the house that you live in to the car that you drive, metals and minerals are intertwined with virtually every aspect of our lives.

Along this line of thinking, decarbonization and net-zero initiatives have one thing in common: the need for metals and minerals. Projections from OEMs and government-funded research point to a huge increase in the need for metals such as copper and nickel over the next decade (according to recent publications from ICMM and McKinsey & Company ). However, the supply is not even close to catching up to the demand.

Supply And Demand For Metals

On the one hand, we will probably never completely run out of metals. The challenge becomes how to extract them at the right time, in a responsible manner and at the right price. Metals can be produced from two sources: mining and recycling. Currently, mining accounts for 75% of the total copper supply .

As the supply-demand gap widens, I see recycling becoming a competitive advantage for mining and metals companies from a value and market strategy perspective.

I believe that miners that build recycling into their supply chain have a huge advantage in terms of supplying metals to OEMs such as Tesla and Metso, enabling them to gain market share, higher ESG premium credits and revenue from scrap materials.

If recycling seems daunting to implement on a large scale, consider how difficult it is to launch an entirely new mining project. For example, the Resolution Copper project , containing enough reserves to meet 10% to 15% of U.S. copper needs, began the permitting process in 1997, and it is still waiting for permits to begin operations. If the mine had been up and running over the last 25 years, it could have produced the amount of copper needed for 80 million electric vehicles. While new projects are important for longer-term stability, recycling plays a key role in building a circular economy.

The Current State Of Recycling

Glencore and Anglo American are some of the few major mining companies that extract copper or nickel and recycle the material. Glencore, specifically, employs an integrated, end-to-end supply chain from raw material extraction to metal production (as a primary source) and recycled metals (as a secondary source). I believe companies that follow this model can more strongly leverage themselves in OEM partnerships.

Glencore is investing millions in recycling and is a supplier to major EV companies such as Tesla, Ford and GM, making it a key stakeholder in the metals supply chain.

Similarly, 10 years ago, Tesla was a pioneer in EV car manufacturing, and as of last year, it still controlled around 70% of the world market. It is the largest EV producer and supplier, ahead of the other EV makers by five to seven years. I believe that by focusing on recycling earlier, mining companies can position themselves to leap ahead of other enterprises.

Challenges Of Recycling

The next logical question then is why haven’t mining companies included recycling as part of their operations? Simply put, until recently, there was no business case for it. Some immediate challenges with recycling are:

• Availability of raw materials.

• Availability of capital.

• Technical expertise in implementing recycling plants.

• Chemistry of recycling.

Copper and nickel are 100% recyclable without losing their metallurgical characteristics. However, we cannot simply introduce scrap metal in smelters because of chemistry-related challenges, forcing companies to either change their recipe or invest in new equipment for recycling.

For instance, copper smelters are very sensitive to copper-to-sulfur ratio to maintain temperature levels. High bismuth composition can result in lower-grade metal, which then is sold as grade B material (losing premium value).

Benefits Of Recycling

It's predicted that recycling can supply up to 15% to 20% of metal production once the required supply chain and infrastructure are built. In addition to promoting the circular economy, there are multiple benefits such as ESG credits and premiums, lower carbon footprint (less dumping of waste into ocean beds, for example) and quicker transition to a low-carbon future. More recycling also means more efficient energy use.

The Drive To Increase Domestic Supply

From a supply chain point of view, the majority of refined raw materials required for EV production are currently produced in China . As a case in point, the U.S. consumes 12% to 15% of the total copper produced in the world and sources copper from other parts of the world due to limited domestic smelting capacity .

I believe that recycling presents an opportunity for North American companies to secure scrap and process copper. The 2022 Inflation Reduction Act provides support for mining companies that extract and produce metals in the U.S. rather than exporting them. Similar legislation is slowly being adopted in Canada, the U.K., India, Australia and China—countries with a growing demand for battery-grade metals, making it more attractive for mining companies to scale the rate of recycling.

To offset the growth in demand and ever-increasing red tape associated with new mining projects, I believe recycling needs to be included in companies’ production and operating strategies. It’s simply the best way to realize untapped capacity, grow revenue and improve the overall health of the planet.

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• Leading U.S. mining companies 2024, based on revenue

Leading companies in the U.S. mining industry

Mining companies worldwide, leading united states mining companies based on revenue in 2024 (in billion u.s. dollars).

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United States

2022 and 2024

Ranking compiled in May 2024 based on the latest available revenue, most of which is assumed to correspond to the 2023 fiscal year. Industrial meals and mining companies and precious metals and mining companies headquartered in the United States are shown. Companies primarily engaged with fabricated metals have not been included as mining operations are the focus of this ranking.

Other statistics on the topic Mining in the United States

• Active mines in the U.S. by commodity 2022
• U.S. mining fatalities 2005-2023
• U.S. mining industry total employment 2000-2022
• Iron ore mine production in the U.S. 2010-2023

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Statistics on " Mining industry in the United States "

• Value added by the mining industry U.S. 2000-2022
• U.S. mining industry capacity utilization 2013-2023
• U.S. production value of nonfuel minerals 2023, by state
• U.S. distribution of nonfuel mineral production 2023, by state
• U.S. consumption of minerals per capita by type 2023
• Largest mining M&A deals in the U.S. 2023-2024, based on value
• Number of active mines in the U.S. 2000-2022
• Active nonmetal mines in the U.S. 2010-2022
• Active metal mines in the U.S. 2010-2022
• Copper mine production in the U.S. 2010-2023
• Rare earths production in the U.S. 2012-2023, by type
• Nickel production in the U.S. 2014-2023
• Lithium production in the U.S. 1995-2023
• Uranium mine production U.S. 2005-2022
• U.S. silver mine production 2010-2023
• U.S. gold mine production 2005-2023
• Platinum mine production in the U.S. 2010-2023
• U.S. crushed stone production 2011-2023
• Industrial sand and gravel production in the U.S. 2016-2023
• Portland and masonry cement production in the U.S. 2010-2023
• U.S. sulfur production volume 2014-2023
• Sodium carbonate production in the U.S. 2010-2023
• Leading U.S. mining companies based on market capitalization 2023
• Freeport-McMoRan's revenue 2010-2023
• Newmont Corporation's revenue 2010-2023
• U.S. mining industry employment excluding oil and gas 2000-2022
• Employees in the U.S. mining industry by sector 2022
• U.S. land reclaimed from mining by type 1975-2022

Other statistics that may interest you Mining industry in the United States

• Basic Statistic Value added by the mining industry U.S. 2000-2022
• Premium Statistic U.S. mining industry capacity utilization 2013-2023
• Premium Statistic U.S. production value of nonfuel minerals 2023, by state
• Premium Statistic U.S. distribution of nonfuel mineral production 2023, by state
• Premium Statistic U.S. consumption of minerals per capita by type 2023
• Premium Statistic Largest mining M&A deals in the U.S. 2023-2024, based on value
• Premium Statistic Number of active mines in the U.S. 2000-2022
• Premium Statistic Active mines in the U.S. by commodity 2022
• Basic Statistic Active nonmetal mines in the U.S. 2010-2022
• Premium Statistic Active metal mines in the U.S. 2010-2022
• Basic Statistic Iron ore mine production in the U.S. 2010-2023
• Premium Statistic Copper mine production in the U.S. 2010-2023
• Premium Statistic Rare earths production in the U.S. 2012-2023, by type
• Premium Statistic Nickel production in the U.S. 2014-2023
• Premium Statistic Lithium production in the U.S. 1995-2023
• Basic Statistic Uranium mine production U.S. 2005-2022

Precious metals

• Premium Statistic U.S. silver mine production 2010-2023
• Premium Statistic U.S. gold mine production 2005-2023
• Premium Statistic Platinum mine production in the U.S. 2010-2023

Non-metallic minerals

• Premium Statistic U.S. crushed stone production 2011-2023
• Premium Statistic Industrial sand and gravel production in the U.S. 2016-2023
• Basic Statistic Portland and masonry cement production in the U.S. 2010-2023
• Premium Statistic U.S. sulfur production volume 2014-2023
• Premium Statistic Sodium carbonate production in the U.S. 2010-2023
• Premium Statistic Leading U.S. mining companies 2024, based on revenue
• Premium Statistic Leading U.S. mining companies based on market capitalization 2023
• Premium Statistic Freeport-McMoRan's revenue 2010-2023
• Basic Statistic Newmont Corporation's revenue 2010-2023
• Premium Statistic U.S. mining industry total employment 2000-2022
• Basic Statistic U.S. mining industry employment excluding oil and gas 2000-2022
• Premium Statistic Employees in the U.S. mining industry by sector 2022

Environmental & social impact

• Premium Statistic U.S. land reclaimed from mining by type 1975-2022
• Premium Statistic U.S. mining fatalities 2005-2023

Further related statistics

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• Premium Statistic Anglo American's revenue in Brazil 2013-2022
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• Premium Statistic Largest mining companies in Peru 2022, by beneficiation plant investment
• Premium Statistic Global molybdenum production volume by leading company 2013
• Premium Statistic Collahuasi: operational costs 2015-2017
• Premium Statistic Canada's leading mining companies' assets 2018
• Premium Statistic Collahuasi: workforce distribution 2014-2017, by gender
• Premium Statistic Collahuasi: molybdenum production 2015-2017
• Premium Statistic Leading mining companies in Europe 2023, based on revenue
• Premium Statistic Revenue of Pan American Silver 2010-2023
• Basic Statistic Leading global mining M&A deals 2022-2023, based on value
• Premium Statistic Indian sillimanite production value FY 2012-2019
• Premium Statistic Industry revenue of “non-ferrous metal rolling, drawing, extruding“ in Pennsylvania 2012-2024

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• Collahuasi: operational costs 2015-2017
• Canada's leading mining companies' assets 2018
• Collahuasi: workforce distribution 2014-2017, by gender
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• Leading mining companies in Europe 2023, based on revenue
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Business Brief: Mining our business

A South African gold company’s agreement this week to buy a Toronto-based miner for $2.16 -billion isn’t expected to raise national security concerns from Ottawa. Gold is valuable, but it isn’t critical. Today, as the federal government weighs another foreign bid for a Canadian copper company, we explore the difference.

• Former CFO sues RBC: Former Royal Bank of Canada chief financial officer Nadine Ahn is suing the bank for nearly $50-million, claiming RBC wrongfully terminated her employment four months ago after an internal investigation allegedly found she had an undisclosed personal relationship with a colleague that led to preferential treatment.
• Branching out: Bank of Nova Scotia announced it will pay US$2.8-billion in cash for a 14.9-per-cent stake in KeyCorp, which operates roughly 1,000 branches across 15 states under the name KeyBank National Association. But as Scotiabank bets big on the U.S., investors are slow to applaud .
• More power: Canadian engineering giant WSP Global Inc. has struck a deal to acquire U.S. consulting firm Power Engineers Inc. as it bulks up its capabilities in the North American energy sector.
• Pumping up the tires: Goodyear Canada Inc. announced a $575-million project to modernize and expand its plant in southeastern Ontario, including tires for electric vehicles, with federal and provincial government funding of as much as $64-million.

A decision looms large over Canada’s mining industry

An electric sedan from Chinese automaker BYD on display in Shanghai. Fast-growing demand from the electric vehicle and renewable energy sectors has made copper a critical part of Canada's place in the global supply chain. Ng Han Guan/The Associated Press

BHP Group Ltd.’s proposed acquisition of 50 per cent of Filo Corp. is among the first deals to be scrutinized by Ottawa under new, tougher takeover rules aimed at protecting the domestic critical minerals industry from foreign incursion. Mining reporter Niall McGee walks us through why the deal’s outcome will set an important precedent in Canada’s mining industry.

Why does the Canadian government have rules around foreign investment in the mining sector here?

The rules are there to make sure that these takeovers make economic sense for Canada and guard against any national security threat.

Why are these minerals considered critical?

A critical mineral is one that is considered essential to economic well-being, one that there are supply concerns around and one that is used in the move to lower carbon energy sources. Gold is not a critical mineral because there is plenty of supply and there are very few industrial uses. Lithium is a critical mineral in Canada because it is used in electric car batteries, and China dominates the supply chain while Canada produces very little.

Why are those rules coming into more focus now?

In recent years, national security has become a major focus because of the rise of China in critical minerals. China dominates the supply chain in many critical minerals such as lithium, cobalt, graphite and, more recently, nickel. All of these minerals are used in energy sources that are less environmentally destructive than fossil fuels such as coal and oil.

What are the global implications of China’s rise?

Governments around the world have made it a priority to shore up domestic supplies of these metals, or at the very least source them from countries where the relations are friendly. Western countries like Canada do not want to rely on China. This is the very definition of a national security threat. So, Canada in 2022 essentially outlawed any takeovers of Canadian critical minerals companies by Chinese firms. And since then, the government has indeed shot down several attempts by Chinese firms to acquire Canadian critical minerals assets.

What else has the federal government done since then?

What really surprised a lot of people was last month Ottawa went one step further and said it will only approve foreign takeovers of “important Canadian mining companies engaged in significant critical minerals operations” under the most exceptional of circumstances. By doing this the government was sending the message that Canada’s biggest critical miners can’t be sold to just anyone, including Canada’s allies.

Under what “exceptional” circumstances would the government allow investment?

We can look to recent history for clues because the government has not spelled that out. On national security grounds, the government so far has nixed quite a few proposed investments by Chinese firms into Canadian critical minerals companies. Those include Zijin Mining Group Co. Ltd.’s proposed deal with Solaris Resources Inc. and Carbon One New Energy Group Co. Ltd.’s proposed transaction with SRG Mining Inc.

And what about exceptions under the new net benefit rules?

There hasn’t been a test yet of what the government may be prepared to tolerate. But we will know a lot more soon because there is a live deal that we believe is currently undergoing a net-benefit review: BHP’s joint bid for Canada’s Filo.

If this transaction had been announced even two months ago, I think that few people would have been concerned about the government blocking a large Australian mining company from investing in Canadian critical minerals assets, but with the new rules in place, it’s not clear what will happen.

What are the arguments for these regulations?

The “for” argument is easy to understand around national security. Few people think it’s a good idea to sell Canadian critical minerals assets to the Chinese. China is not on good terms with many Western countries and is already abusing its dominant position in critical minerals. For example, this year the price of nickel has crashed because China, in conjunction with Indonesia, is flooding the market with cheap supply, causing great pain for many Western nickel producers, including Canadian operators.

And against?

There are some good reasons for allowing Chinese investment. The Chinese have very deep pockets and are willing to stick it out for decades before seeing a return, unlike many Western publicly traded investors, who want to see returns quickly.

Also, if you are a small Canadian critical minerals company and a rich Chinese investor wants to acquire you at a 30-per-cent premium to market, this may be considered a great outcome, particularly if you are a shareholder or an executive of the company, who may get a huge “change of control” payout if the firm is sold.

💡 Recommended reading: Canada wants to be a global leader in critical minerals. Why is Australia eating our lunch? Plus: A commodity rout is brewing, and Canada will be at the centre of any fallout .

Since Constellation Software Inc. went public in 2006, the stock has generated a compound total return, after factoring in dividends, of 36.3 per cent annually. That’s better than any other TSX name over the same time frame, Tim Shufelt writes .

The outlook

Today: U.S. reports its Producer Price Index for July – a key measure of inflation at the wholesale level. Earnings include Franco-Nevada, Cargojet, Home Depot, HudBay Minerals, Silvercorp Metals, Superior Plus, Algoma Steel.

Tomorrow: U.S. consumer prices for July will command the market’s attention and could add more pressure on the Federal Reserve to move more aggressively on its lending rate.

To Russia: About US$2.3-billion in dollar and euro bills have been shipped to Russia since the United States and the EU banned the export of their banknotes there in March, 2022.

With love: What time is sex again? Stress, burnout and the toxicity of busy life are testing the limits of desire, Zosia Bielski writes . A good place to start: Put it in the calendar.

Morning markets

Japanese stocks rallied amid mixed markets ahead of a slew of data this week, including U.S. inflation numbers tomorrow that could clarify the Federal Reserve’s policy outlook after volatile markets last week. Nasdaq and S&P futures pointed higher while TSX and Dow futures were in the red.

Overseas, the pan-European STOXX 600 was 0.2 per cent lower in morning trading. Britain’s FTSE 100 declined 0.08 per cent, Germany’s DAX slid 0.17 per cent and France’s CAC 40 gave back 0.3 per cent.

In Asia, Japan’s Nikkei ended the session 3.45 per cent higher, after being closed yesterday for a holiday, while Hong Kong’s Hang Seng rose 0.36 per cent.

The Canadian dollar traded at 72.81 U.S. cents.

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Plibersek blocks Regis tailings plan

Federal Environment Minister Tanya Plibersek appears to have derailed Regis Resources’ tailings dam plan at its McPhillamys gold project, in a hurdle for the company’s mining goals.

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Transnet’s recovery plan lacks the ambition needed for higher growth, government and business warn

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15th August 2024

By: Terence Creamer

Creamer Media Editor

Font size: - +

Government and business are urging Transnet to show greater ambition in its plans to recover freight volumes, describing the current recovery plan as falling well short of what is required to support higher economic growth and job creation.

The State-owned group has set a target to move 170-million tons of freight during the current financial year having achieved 152-million tons in 2023/24, up from the 149-million-tons slump of 2022/23.

The 170-million-ton target remains well below the 226-million tons moved by Transnet in 2017/18 and is also below contracted volumes for key mined commodities.

In a presentation following the first high-level meeting between Cabinet members and business leaders since the formation of the Government of National Unity, the Presidency’s Rudi Dicks revealed that Transnet was performing below its own recovery plan.

This was confirmed by Transnet CEO Michelle Phillips , who told participants to a PSG webinar that it was currently two-million tons behind target and that efforts were under way to make up for the deficit during the remainder of its financial year.

However, Dicks also argued that the recovery plan was below the volumes required to support South Africa’s economic recovery and cautioned that business’ confidence in Transnet’s ability to meet its turnaround targets remained low.

In his presentation, Dicks displayed a graph indicating that volumes of between 200-million and 220-million represented the threshold at which Transnet was supportive of economic recovery and job creation, with there being negative employment impacts below that level.

“So, it's important for us to work closely with the Transnet leadership to be able to ensure that we do have a more ambitious target to push up the volumes,” Dicks said.

Neither business nor government commented, however, on whether raising the level of ambition would require a government bail-out, with the National Treasury having thus far refrained from making any new allocation, having instead extended a R47-billion guarantee facility.

Dicks said the key priorities agreed to by the National Logistics Crisis Committee included:

• finalising governance reporting lines for Transnet following the closure of the Department of Public Enterprises;
• commencing  ‘breakthrough initiatives’  with clear lines of accountability between business, the Department of Transport, and the Presidency;
• supporting the Transnet board and executives with additional skills and resources;
• revising the shareholder compact;
• securing additional funding for security;
• appointing the Transport Economic Regulator board;
• capacitating a private sector partnership unit to accelerate private rail and port investments; and
• issuing the final Network Statement to facilitate the opening of rail access to third-party operators.

The Network Statement, including the associated tariff, has been deliberated upon by Interim Rail Economic Regulatory Capacity and is expected to be published in either August or September.

Edited by Creamer Media Reporter

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