There’s a reason why the mining industry employs nearly 187,000 individuals. There’s no denying that mining can be a lucrative and enticing industry to enter. However, it can also be quite a challenge to break into the sector if you’re a new company.
That being said, it’s certainly not impossible. If you plan everything carefully, do your research, and secure the necessary capital, you can quickly make a fortune through mining.
To help you decide if this career decision is the right choice for you, we’ll briefly walk you through the basics of how to start a mining company. That way, you get a better picture of what’s typically involved.
Do Your Research and Make a Business Plan
There’s no denying that the mining industry is extremely volatile. For one thing, the price of certain minerals, stones, and resources, are subject to wild price changes depending on the market.
On top of that, entire mining operations in certain countries can be disrupted due to things like government legislation and war. That’s why it’s so important to do your research before you even begin to consider forming a mining company.
Pay close attention to things like the latest news stories and trends within the mining market. You can use this information to avoid certain countries where internal conflicts might halt your operations.
During this time, you should also begin to focus on what types of mining you want to pursue. While certain minerals like gold and silver might be more stable in terms of their market value, there’s also a lot more competition surrounding their acquisition.
As such, you should weigh the costs and benefits of things like this. Once you’ve finished your research, you should put it into a comprehensive business plan. Your plan should include things like:
• The amount of capital you’ll need to get started
• Projected profits
• The overall direction and strategy of your company
• Mining competitors
• Growth plans
Your business plan will be crucial for securing funding from lenders or investors. As such, the more effort you put into it, the better your odds will be of securing capital.
Secure Funding
To begin mining you will need a lot of capital to get started. This money will need to go toward things like marketing, employees, and, of course, equipment.
Without proper equipment, there simply isn’t a viable way to begin a mining company without contracting the workout and losing a significant portion of your revenue. Construction vehicles, industrial-strength mining drills, pumps, and mining technologies don’t come cheap.
On top of that, you also need to worry about strong electrical components to power your mining equipment. Unless you’re sitting on a huge amount of personal savings, odds are you’re going to need outside help to get started.
This can come either in the form of business loans or investors who want to support your company. Regardless of which option you choose, remember that a comprehensive business plan that lays out all of your expenses and projected earnings will be the key to landing them.
Make Sure You’re Compliant
Since mining is a heavily regulated industry with strict environmental protection, you’ll want to make sure that your business remains compliant. Otherwise, you could face considerable fines and legal complications.
That starts with making sure you get the appropriate licenses and mining permits. The specific ones you will need depend on where you’re mining. For example, here in the United States, there are local, state, and federal laws you will need to follow.
As such, you should research what is needed to operate out of areas you’re interested in. Different countries have different laws and regulations when it comes to mining.
As such if you want to mine outside of the United States you will need to do some additional research to ensure you’re compliant. Another important part of compliance is registering your business and creating legal contracts for any clients you might have.
We recommend reaching out to a lawyer to ensure that everything is in order from a legal standpoint before you begin accepting or taking contracts for mining operations.
Hire Skilled Employees
You will need skilled employees who are trained to handle mining equipment to function as a company. The type of employees you get will depend on the available resources you have.
If you have a large budget, you might consider bringing on permanent part-time or full-time employees for your jobs. Or, if you’re working on a budget, you can go with independent contractors.
However, remember that you don’t just need employees for the ore mining itself. You also need to consider workers for things like cleaning, packaging, shipping, and bookkeeping.
If you don’t have many funds for employees, you can always start with a skeleton mining crew, then gradually add on workers as you begin to expand and grow.
Market Your Company
Just because you start a mining company doesn’t mean the work will begin rolling in. Unless you have connections in the industry, you will likely need to market your services and specialties. The most effective types of marketing in the mining industry tend to be outreach programs.
However, you can also utilize things like social media, SEO, and targeted digital ads to get your company in front of clients without breaking the bank. When you’re first starting, it makes sense to outsource your marketing needs to a professional (unless you have the time and energy to run campaigns yourself).
Once your company begins to grow, it makes sense to bring on professional marketing employees onto your team. Dedicated professionals are usually able to learn the ins and outs of your business more fully, which leads to more effective advertising.
Appreciate Learning How to Start a Mining Company? Keep Exploring
We hope this guide helped you learn more about how to start a mining company. As you can see, starting this type of company isn’t something that anyone should take lightly.
It’s a competitive industry that requires careful research, necessary funds, and close contacts.
However, if you’re diligent enough and follow the advice in this guide, there’s a good chance your company will be a huge success. Want more business advice? Our website has loads of similar topics to choose from, so keep scrolling to find them all.
Lisa Eclesworth is a notable and influential lifestyle writer. She is a mom of two and a successful homemaker. She loves to cook and create beautiful projects with her family. She writes informative and fun articles that her readers love and enjoy.
