(This is a contributed post)
If you want to start a business and you’re trying to think of ideas, it’s likely that you’ll start by looking at the most popular industries at the minute. Anything tech related, for example, has a good chance of doing well if the product is right and it’s well managed. The food industry is going through a lot of changes right now and there are opportunities for new businesses to enter that field as well. But have you thought about the businesses that nobody is talking about? There are so many profitable businesses out there that nobody really considers because they’re not that fashionable and they’re working away in the background. The mining industry is a perfect example of this.
Starting a mining business probably hasn’t even crossed your mind but they’re actually not too expensive to set up and they can be very profitable when done right. It makes sense really because we always need raw materials to create products for a lot of the other industries that you have considered. Take the tech industry, for example; phones and laptops all use different metals, some of them fairly rare and expensive. You can bet that the companies that extract these materials and sell them on are benefiting from the tech boom just as much as the companies that manufacture and sell the phones.
If you’re looking for a new business idea, the mining industry could be the right direction to go in. However, it’s not likely that you know much about it so you’ll need to read this quick guide to help you get started because there are a lot of things to consider.
Different Areas Of Mining
There are all sorts of different areas that you could go into in the mining industry. The most obvious is to start your own mining company and extract raw materials to sell, however, this isn’t always an option. If you aren’t able to gain access to a mining region that is rich in desirable resources, then you’ll have to look at your other options. Luckily, there are a whole host of other businesses that support those that are doing that actual mining and you can still make a lot of money starting one of these companies as well.
Software development is a big part of mining because companies need software that will run their equipment. If your background is in tech but you want to get into the mining industry, this is a great option. Leasing equipment is another good option, although it does require a bit more initial investment because you will need to buy the machines. If you have some experience in the transport industry, you could start a company that offers transport to mining teams and their equipment. Health and safety is a big concern for mining companies for obvious reasons, which means that they need companies to carry out risk assessments before they can start working on a site.
These are all great business ideas you could start. The best thing to do is consider your experience and expertise and find an area of the mining industry that plays to your strengths. You should also consider contacting mining companies and asking what major issues they currently face in their business. Then you can start coming up with business ideas that will solve those problems.
If you do want to start your own mining company and drill for resources, the first hurdle that you will have to deal with is the legal issues. Regardless of what industry you’re in, doing business on a global scale always has its challenges. However, there are more issues that need to be dealt with if you’re going to mine for resources. Firstly, you need to obtain all of the correct licenses to set up a business in your country of choice. You’ll also need separate licenses before you’re actually allowed to start drilling. Then there are all of the health and safety regulations to navigate as well but, as discussed earlier, there will be companies that specialize in risk assessments to help you with this.
Once you’ve set your mining company up and started extracting resources, it’s time to start selling them. That means you’re going to need an export license as well, which can sometimes be difficult depending on which country you’re operating in and where you’re exporting to. All of these legal issues can get very complicated so you’ll need to consult a lawyer immediately before you do anything else.
It’s no surprise that your biggest expense will be sourcing all of the equipment that you need for mining and a lot of people underestimate exactly what they will need. You will need drills and industrial pumps, of course, but what about power? You’ll need to engage a reputable independent power provider to supply generators to power all of that equipment. You’re also going to need construction vehicles to clear out debris and prepare the site for drilling and then you’ll need vehicles to transport the raw materials and prepare them for shipping. Before you do anything, you need to do some research and work out exactly what you’ll need to mine in a given area and ensure that you can afford to cover those initial startup costs.
You’ll need to hire a lot of different employees to run a successful mining company. Firstly, you’ll need skilled laborers to operate the drilling equipment and extract the material. But on top of that, you need experienced site managers and technical experts to maintain all of your equipment. Then you’re going to need a lot of office staff to deal with the admin side and organize the sale of the minerals once they’re extracted.
You’ll be working in another country so you’re also going to need housing for all of these employees unless you source labor from the surrounding area but that means hiring all of these people every time you change location. Most mining companies will build temporary accommodation for their employees and that’s another cost that you need to factor in.
Starting your own mining company can be incredibly lucrative, as long as you can deal with all of the legal hurdles and cover the initial startup costs.