There are loads of startup ideas floating around that people will recommend. Most of which will require little or investment capital to kick start it. A mining business may be the last thing on your mind. You may not have even considered it.
But sometimes the real money is in the businesses that no one is paying attention to. Starting a mining company doesn’t have to be capital intensive. There are lots of other opportunities available in the mining industry.
Small business opportunities in the mining industry
You may not be able to get directly to a mining region to start digging for minerals. But you could offer other services like consultancy, temporary developers, transportation, brokerage, financial consulting, machine sales, risk assessment services, power supply, equipment leasing, Software and technology, safety services and even data mining.
A lot of mining companies will gladly consider paying for your services if you get the basics right and get your legal documentation in place. Most mining companies handle huge financial transactions, hence the need to do business with third parties or suppliers that have all the legal requirements and are properly documented.
What it takes: research, industry knowledge and contacts
Success in the mining industry requires lots of research. And you will need mining industry knowledge. If you know people who are already doing business in the industry, get to know them real fast. Speak to people right from the registration stage to selling the minerals in or outside the country you will choose to do business.
Incorporating a company in any country of interest is basically the same for all industries. But you will most likely require special documentation. Most mined products are exported, hence you will need to obtain an export license. Look into that too.
If you don’t intend to drill directly. the best way to get a good start in the industry is to contact the mining companies and ask for problems they face and what you can do about them. Or if possible look at relocating to one of the regional mining centres.
Getting your mining equipment (if you opt for drilling)
Mining companies will require loads of equipment to function properly. This is probably one of the biggest hurdles for anyone who want to start a mining business.
You can’t mine for resources if you don’t have tools to help you. This includes things like drills, industrial pumps, construction vehicles, etc. There’s a lot that needs to be purchased, and you have to make sure you don’t go over budget.
Hiring skilled employees
All businesses will need employees to help everything come together. With a mining company, you’ll need lots of them. You need people to do the manual labour jobs and help mine the materials. But you will need experienced employees. There can be no exceptions here.
Again, if you are choosing to go into drilling, one of the biggest challenges you will be facing is accommodating workers. This includes providers of temporary accommodation near your mine sites. You will have to build accommodation in nearby towns for your skilled labourers.
You will also need some office staff to deal with all the admin work. They’ll complete orders and contact clients, etc. So, ensure you hire your staff and that they’re the best people for the job.
These are the two biggest considerations for you, you can’t forget them! Get all your equipment, hire your employees, and you’re on your way to starting a company. As I mentioned earlier, there are some great reasons you should go into this industry. If you want a business that will stand the test of time, this is the one for you.
Health and safety cannot be taken for granted
Occupational health and safety cannot be overemphasised in the mining industry. It can make or break your business. Don’t take your employees health for granted. Invest in the right training and equipment to make sure their lives are protected all the time whether they are onsite or offsite.
If you are not ready to directing into mining for minerals, you can provide health and safety gear and training for already established businesses.
Why a mining business could be worth your while
I totally agree that it is comparably difficult to set up a mining business and the business poses a lot of risks. Not convinced? Allow me to tell you why a mining business could be worth your while.
Big chance of making profit
Mining businesses present you with a big chance of making a profit, fast. This is because it can cost very little to mine certain resources, which will sell for lots of money. There are certain things that are in high demand and will easily sell for a lot of cash.
All you have to do is mine them and sell to those that need them. Stuff like gold and iron ore are easy to mine and will sell for big money. The services and equipment needed to run a successful mining business are also huge opportunities. Hundreds of businesses who don’t drill for minerals are making profits from just the equipment they supply mining companies.
Starting a mining company will give you a chance to mine for so many things. This is good because it means you’ve got a diverse selection to choose from. If one thing starts to dry up, you can move onto another resource instead. Look at where the market is going, and mine things that are in high demand. There will never be a time when you have nothing to mine and no work to do.
The mining industry is unique but has challenges
What’s unique about a mining company is that it can take you to many different places. You won’t be stuck in the same location, doing the same thing, every day. Your business will take you all over the world as you look for the best places to mine for resources. It means work will be fun, and you get to travel a lot and see new things. Certainly a step up from boring office work.
But the challenges of getting started can be enormous. The legalities can be one of your biggest hurdles. You will also need huge upfront financial backing. Change in government policy can significantly change how you do business. Do your research and make sure every sector of the mining industry you decide to explore will be worth your time and investment.