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How to set up a Quarry 

  Nigeria is a blessed country but it is currently suffering from   
  resource curse. The human and natural resources in the 
  country are quite enormous and are capable of making 
  Nigeria the greatest in the world.

  However, we have been unable to harness our resources in order to achieve greatness. Therefore, the establishment of a quarry plant is one of the projects that will readily utilise our otherwise idle human and natural resources.

Setting up a quarry plant is like injection into the real (productive) sector of the economy. The real sector development guarantees employment and income generation, and are ingredients needed for economic development of the country.

Employment generation will lead to reduction in social vices and improve both the per capita income of Nigerians; in addition, this will improve both the national and gross domestic income, as well as improvement in the marginal propensity to consume, thereby stimulating demand and the economy in general.
Products from the quarry are very vital in the building and road construction industry, and even outside the country. Demand for quarry products, consisting of granite chips of various sizes and quarry dust, is very high.
You also have construction companies paying in advance for established quarry company.

Quarry sites are numerous in Nigeria. You can hardly travel 100 kilometres without seeing massive rocks waiting to be tapped. In this regard, the raw materials are readily available.

Technical information
To establish a quarry plant, you need to procure a site (where you have massive rock deposit). You need to do the analysis of the rock deposit to ascertain the quality of rock deposits.

Application for quarry lease/licence is then made to the appropriate Federal Ministry (Mines and Power).
On obtaining the quarry lease, site development follows. This is comprised of site office and installation of the quarry plant. Procurement of utility items such as generator and project vehicles are also very vital.

The project can also be established by existing construction companies as a way of diversifying and ensuring raw materials availability for their activities. Serious-mined investors can be assisted in the development of this project, including all the above stated implementation procedures.

Financial implication
To establish the plant, a sum N139 million will be needed and its broken down as follows: 

1. Pre-investment :                 NGN2,000,000
2. Site acquisition :                 NGN5,000,000
3. Approvals :                        NGN2,000,000
4. Plant & machinery :            NGN80,000,000
5. Utility :                               NGN20,000,000
6. Working capital/others :      NGN10,000,000
TOTAL :                                NGN139, 000,000

The project can be established by the federal/state governments to aid the repair and construction of roads.
Construction companies can also establish this project as a way of diversifying, while banks will also be ready to assist well-packaged prospective investors. Serious-minded investors can be packaged to meet bank’s requirement.

The plant has an output of 300,000 metric tons per annum. This translates to an annual turnover of over N450 million. 50 percent profit margin has been computed. This gives as annual net income of N225 million, which is no doubt, a solid investment.

Source: BusinessDay.

Article by Mr. Olumakinde. You can reach him on: Tel: 080-23058045, 080-23058045, 081525969850,
E-mail: olumakindeoni@yahoo.com
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