Mining is a great industry to go into if you want to make serious money. But, what does it cost to set up a mining company? Read on to find out:
If you start a mining company, you’re going to need lots of equipment. Think of all the hydraulic drills and stuff that every mining business is required to have. Those things will cost a lot of money; that’s obvious! But, you’re also going to get some sneaky costs here and there. You’ll have to purchase certain things for your equipment. Things like a pom bearing to attach to hydraulic cylinders. Little things here and there that you need to buy, and use alongside the main equipment. Slowly but surely, the price will add up! Before you know it, you’re shelling out loads of money on the equipment side of things alone.
Alongside equipment, you’ll have a fleet of vehicles. When you set up a mining base, it’s usually in a remote place. It won’t be in the city, and it won’t be easy to get to. So, you’ll need to have some vehicles to transport yourself and your workforce to and from the site. Also, think of all the vehicles you’ll be using to help you work. Stuff like diggers and bulldozers to clear debris out the way. Then you may need some trucks to load resources onto. It’s only when you sit and think that you realise how many vehicles you’re going to need. They’re not going to be cheap, even if you hire them instead of buying outright.
Of course, you can’t run a mining company without employees. There’s no way that one person can mine for something on their own. So, you set out to hire a large amount of employees. You’ll need some to work onsite and do the actual mining. Then, you’ll need some at your head office to work on distribution and everything else. All these employees are going to be costing you a lot of money. Especially the onsite ones, they could be working for long hours every day, meaning they get paid more money. Employees will definitely cost you loads of cash. But, it’s necessary that you have them if you want to be successful.
A lot of what I’ve spoken about is to do with onsite costs. But, you have to remember there are plenty of other costs too. Offsite costs like office rent need to be taken into consideration. Then there’re the costs of dealing with the resources you’ve mind. Getting them ready to be sold will cost you money. If you’re mining something like gold, you have to think about how much the smelting process costs before you sell it to people. There are loads of things to consider that aren’t onsite costs.
As you can see, there are plenty of little, hidden costs, as there are with every business. The key is finding ways to be clever and save as much money as possible. The more you save, the less you spend. The less you spend, the more chance you have of making a profit.