Simplified Gold Mining Business Plan – Gold mining is a lucrative business. This is because gold is highly valuable. In fact, the voluability of gold stems from its unique physical chemical characteristics. Its ductility, malleability, quasi-indestructibility, and rarity gives gold its value. Therefore, if you are looking for a lucrative mining business, gold mining is the answer.
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Table of Contents
Furthermore, this Simplified Gold Mining Business Plan gives comprehensive details of both small and medium scale gold mining business plan. As a matter of fact, this piece is valuable for mining projects and investment proposals. In fact, this simplified edition of mining business plan is also good for other solid mineral business plans like copper, grannite, gypsun, coal, zinc and lead. In fact, this is a brief on how to start a mining business in Nigeria. The mining project profile, cost of setting up a mining business, marketing and management profile are covered here. Indeed, every aspect of the business forecast are covered in the detailed viability analysis embedded here.
INDUSTRY OVERVIEW For Simplified Gold Mining Business Plan
In addition, it’s worth overviewing the Nigerian mining industry for us to keep abreast with the trend of mining activities in Nigeria. As a matter of fact, Nigeria is endowed with numerous solid mineral resources. These include talc, iron ore, bitumen, gold, rock salt, gypsum, lead and zinc. Others are coal, gemstones, kaolin, tantalite, bentonite and baryte. These are located in different parts of the country in commercial quantity.
However, the ownership of the mineral resources is vested in the Federal Government of Nigeria. So, the state is the custodian on behalf of the citizens of the country. The state regulates this industry through its solid mineral development Act. This same Act defines title ownership, community relationship and solid mineral tax matters. For more on this contact us for your commercial information at minimal costs. Or ask for our solid mineral mining e-book.
Need for Foreign Investors:
Recently, the Nigerian government has recognized that the successful exploration and exploitation of its mineral resources may not be met by only the indigenous miners. That it requires both technical expertise and financial strength to a large extent which can be provided by foreign investors. This had led to evolving of certain mining incentives for all miner investors. This is detailed below.
In this regard, the government grants mineral titles to allow suitable investors to explore for, mine and market the mineral resources. In this connection, government is both the ‘owner-operator’ and ‘administrator-regulator’. In fact, the solid mineral cadastral office receives applications for mineral titles and licenses.
Investors are, therefore, free to apply for mining titles at any time for any area not covered by an existing title or not otherwise reserved by the government. You can own more than one title if you can afford it.
Furthermore, government has evolved policies aimed at encouraging both domestic and foreign investors in the mining industry. These incentives include granting of a three-year tax holiday to new mining companies which may be extended for one further period of two years. In addition, mining operators are granted exemptions from payment of customs and import duties in respect of plant, machinery, equipment and accessories imported specifically and exclusively for mining operations.
Additionally, every holder of a mineral title is guaranteed free transferability of funds through the Central Bank of Nigeria. Again, they are also permitted to retain a portion of their foreign exchange in a foreign exchange domiciliary account for use in acquiring spare parts and other inputs required for the mining operation. But such must be those that would otherwise not be readily available without the use of such earning.
Furthermore, this sector includes such business activities as the importation and local marketing of modern mining equipment. In fact, you can invest into modern mineral testing and quality control technologies and reagents. Also you are allowed to invest in local sales and export of crude or processed solid minerals. These are all business opportunities in the solid mineral sector of Nigeria’s economy.
The executive summary of Simplified Gold Mining Business Plan now follows.
EXECUTIVE SUMMARY On Simplified Gold Mining Business Plan
This Simplified Gold Mining Business Plan is for Complete Gold Mining Company. Complete Gold Mining Company is a legally incorporated mining company based in Keffi, Nasarawa State of Nigeria. Currently, Complete Gold Mining Company has three gold mining licenses for three different locations in Nasarawa State.
As a matter of fact, this business plan is our business forecast for the next three years. In fact, it is our administration and mining operation manual for the period covered. In this plan are our company profile, products, production flow chart, and our market and marketing strategies. The feasibility analysis of our operation for the period under consideration are also covered here. So, the feasibility analysis covers all the cost of operation, marketing, and turnover forecast. All of these are finally presented in the company income statements for projected gross income and net profit propositions. The balance sheet and the cash flow statement speaks volume for our capacity to operate seamlessly without any financial hitch in the next three years.
Our Vision Statement
Furthermore, our vision as a gold mining company is to own more gold mines in the North Central geopolitical zone of Nigeria. We want to become the number one brand in the gold mining industry in this geopolitical zone.
In fact, establishing a world class gold mining company in Nigeria is our goal. Therefore, we want to build a gold mining company that will be listed amongst the top 10 gold mining companies in West Africa.
Our Business Structure:
As a matter of fact, we know that to establish a world class gold mining company our organisation must have in place a standard corporate governance structure. Such structure that are hierarchically linked right from the board of directors to the least commanding officer in the company. Therefore, we have perfected plans to get it right from the onset. In this wise, we have gone the extra mile to ensure that we have only competent employees to occupy all the available positions in our company.
In view of that, we have decided to hire qualified and competent hands to occupy the following positions in Complete Gold Mining Company.
- Chief Executive Officer – Principal Director
- Gold Mine Manager – an incorporated second director.
- Human Resources and Admin Manager
- Sales and Marketing Officer
- Gold Mining Casual Workers
- Truck Drivers
- Customer Service Executives
OUR PRODUCT & SERVICES:
In addition, Complete Gold Mining Company is established with the aim of maximizing profits in the gold mining industry. Therefore, we have taken time to define our products and services. In fact, with efficient management team in place, we are sure that our products are going to be of high standard.
As a matter of fact, we will work hard to ensure that Complete Gold Mining Company is not just accepted in Nigeria and West Africa alone but globally. Therefore, our products are listed below;
- Gold ore mining
- Gold ore beneficiation
- And gold bullion, ore and concentrates
- Gold mining Consultancy Services
THE MARKET For Simplified Gold Mining Business Plan
Furthermore, the market trend is encouraging. In fact, Gold mining in Nigeria has shown to be a lucrative business. Ghana has continued to maintain the market lead in West Africa for a long time and up to now. South Africa is another major producer in the Africa. Until recently, Nigeria’s gold-mining industries had witnessed poor investment. It failed to operate as well-oiled machines. In fact, the miners have not considered it wise to put forth sizeable capital towards exploration and development. But with recent government incentives in place, exploration will be successful and will extend to renewing and growing the reserves that were being mined.
In fact, it’s hoped that a continual expansion and new development of mining sites will be sustained leading to growth in production. It is common trend in the gold ore mining line of business to find mining companies positioning for business in locations and communities where they can easily have cheap access to mines and labour. This policy is like an industrial standard. It actually, enables miners make profits and maintain overhead and logistics.
Furthermore, is that there is an industrial trend in this line of business. Tha is, that most registered and well organized mining companies look for market beyond their locations, state or country. In fact, they enjoy economies of scale and with that ensure that they strike business deals with leading jewelry making companies globally beyond the countries of their operation. This is because if one becomes a vendor to one or more jewelry making giants in USA or other countries of the world, one will always smile to the bank.
MARKETING STRATEGIES for Simplified Gold Mining Business Plan
In the light of the above, we have to define our target market. Indeed, when it comes to supplying product from gold mines, there must be a well-defined market. This goes to show that the target market for raw gold is far reaching. In view of the above, we have conducted our market research to take care of this. Now, we have ideas of what our target market would be expecting from us. In actual fact, we are in business to engage in supply of raw gold to the following organizations;
- Gold merchants
- Jewelry production companies
- Electronic components manufacturing companies
- Art and culture companies
- Government agencies for promotional purposes
Our Competitive Advantage:
Some of our competitive advantages include:
- availability of resource,
- ability to forward sell production when appropriate and
- the ability to comply with environmental laws.
- vast experience of our management team
- robust distribution network
- excellent customer service culture
- taking care of our personnel welfare and working conditions. package
As a matter of fact, we have these competitive advantages through our ability to prepare detailed analysis of the demographics of our surrounding areas and the nature of our existing competitors. In fact, we also have in place workable strategies to remain afloat even when new competitors enter our market at any time.
Our marketing strategies include:
- Cause Marketing.
- Direct Selling.
- Co-Branding and Affinity Marketing.
- Point-of-Purchase (POP) Marketing.
- Internet Marketing.
- Paid Media Advertising.
- Word of Mouth Advertising.
This is our operational checklist. We intend to adhere to it to achieve our goals.
- Business Name Availability Check
- Business Registration
- Obtaining TIN
- Opening of Corporate Bank Accounts – Regular & Mobile Money Accounts and Online Payment Platforms
- Application for mining license and permit to mine and market gold
- Insurance for the Business
- Leasing essential facilities and renovating them
- Conducting Feasibility Studies
- Generating capital from family members, Loan from the bank,
- Writing of Business Plan
- Drafting of Employee’s Handbook
- Drafting of Contract Documents and other relevant Legal Documents
- Design of The Company’s Logo
- Printing of Promotional Materials
- Recruitment of employees
- Procurement of the needed gold mining machines and equipment, furniture, racks, shelves, computers, electronic appliances, office appliances and CCTV
- Creating Official Website for the Company
- Creating Awareness for the business both online and around the community
Additional time lines;
- Health and Safety and Fire Safety Arrangement (License)
- Launching party planning
- Establishing business relationship with Jewelry production companies and other stakeholders
- Purchase of tippers and delivery trucks
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At this juncture, we advise you to get a business consultant to assist you. What has been narrated above look simple reading them. But I tell you there are a lot of technicalities involved.
We recommend Complete Full Marks Consultants Limited, owners of this website. This firm is made up of experienced consultants. As professional accountants and tax practitioners, they will do good jobs for you.
If contacted, they will ensure all your start-up challenges listed in the operational checklist above are taken care of.
Order this Simplified Gold Mining Business Plan from us. The feasibility analysis is a technical aspect of the business plan. We can do it for you.
Contact us via +234 8034347851 or firstname.lastname@example.org
GET THESE DONE:
For your existing business outfits contact us also for the following, as a continuous validation of the above landmarks. And then;
- Up-dating the certificates – Renewing Mining licences and others
- Rendering statutory annual returns for C.A.C
- Rendering statutory annual returns for FIRS
- Obtaining Tax clearance certificates annually,
- Making necessary changes in the CAC incorporated documents as need arises
- Obtaining the necessary contract bidding compliance certificate for ITF, NSITF, PENCOM and BPP
- Updating management business plans
- Updating contract agreements
- Making Expansion business plan
- And many others
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Founder/Managing Partner of Complete Full Marks Consultants Ltd. An Economist turned Chattered Accountant and Tax Practitioner with over 37 years of industrial experience.