factors affecting proftibly of quarries
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8/13/2019 Factors Affecting Proftibly of Quarries
1/1
But it is also known from experience that natural factors of
influence are active in the process, primarily quality of the raw aggregate product, volume of
reserves, quarry location, etc. These factors can lead to profitability of units in tenure for short
periods of time or inversely to protractedly loss-making operations even if the unit has been in
the ownership of the company for longer time periods. The latter usually concerns
expectations for its chance, which may materialise with the realisation of a major construction
project in the area. Otherwise, there would be little reason for continued operation of the unit.
Earnings per one ton of aggregate product relate directly to natural factors. It is primarily
about the raw material quality measured by the Los Angeles Test. Rocks of the highest
strength rates earn much more per one ton of production than it would be the case for softer or
less firm rocks. As such, it is of major importance for new acquisitions, to assess thoroughly
sort, quality, and quantity of the rock produced by the quarry, which is to be bought. The
application of the discriminate analysis method can provide for assessment and knowledge of
other parameters of future economic development of the enterprise.
2.3.2 Marketing Issues
Although prices vary up and down the country, aggregates are relatively low value products. Industry
profi t margins are usually very tight and the aggregates sector is often very sensitive to any external
direct or indirect factors that may infl uence prices.
In 2002, the Government introduced a levy on primary aggregate extraction. This levy, which is
known as the Aggregates Levy is 1.60 per tonne and is aimed at encouraging the use of secondary
and recycled materials such as construction and demolition waste, slate waste, china clay waste and
pulverised fuel ash, which are exempt. The levy applies to crushed rock and sand and gravel
extracted
or dredged in the UK for aggregates use. Exported aggregates are exempt, but imports of aggregates
are subjected to the levy at the fi rst point of sale in the UK. Imported products manufactured with
aggregates, such as concrete blocks, are also exempt.
The cost
of a lorry load of aggregate doubles by moving it 40 km