You are an entrepreneur who is interested in making it big in the mining industry. You probably already know that mining is risky business, but it is also an industry where you could potentially reap huge rewards too. With this in mind, here are five tips every entrepreneur entering the mining industry should be aware of before jumping in with both feet.
Huge overhead costs
Perhaps the most daunting part about starting a mining operation comes down to the enormous overhead costs associated with getting a foothold in this industry. You must purchase extremely expensive heavy equipment necessary for the mining process. You must also have the capital reserves to pay employees to work even when the mining effort is producing little to nothing in the way of material your company can profit from.
Permits in place
When you are entering the mining industry, there is no telling where you will end up having to go to mine for a particular commodity. In foreign mine opportunities, you must be sure to have all the permits properly filed. Otherwise, you may run into complications with the government over your rights to mine in a given region.
Excellent blast designs
If you need to get through rock, sometimes you will have to blast your way through. Do this wrong, and you could have instability and cave-ins. Making sure you are not using too many explosives to get through rock can be something of an art form that requires that the person in charge of blasting through rock knows what they are doing for your company.
There are all kinds of pieces of equipment that your mining outfit will need. From earth movers and bulldozers to compressor pumps, each piece of gear helps with its own aspect of getting what you are mining for out of the ground and ready for distribution. Not only do you have to worry about initial equipment costs and maintenance, but you must also concern yourself with having the right gear for the job.
Not just anyone can operate the heavy and specialised equipment at a mining operation. Special training and licenses are sometimes required for operating various pieces of equipment. Making certain you have the right talent with the right qualifications and training to operate your mining gear is essential to your business success.
Mining is a dangerous industry with a lot of profit potential. There will be numerous initial costs, but this is expected when opening up just about any business. With the right equipment and a qualified team to help you get product out of the ground, you should be able to successfully function as an up and coming mining operation.
Do you have any more tips on entering the mining industry? Please post them in the comments below.