Classifying quarries vis-a-vis prospects of profitability

Abstract

Similar to the case of any other business venture, the activities of mining industries are profit-oriented. Nothing will stop successful businesses in their quest for new localities to be prospected for minerals of their choice, because the useful economic life of any mine is limited. Before starting the process of land acquisition, it is important for any mining company to be able to forecast the profitability of the venture. The focus of this paper has been on the prospects of success, concerning the case of the opencast extraction of aggregates for construction. A set of 70 successful and loss-making quarries was subjected to investigation. An international company owns the quarries, which are located in seven European countries. The method of discriminate analysis provided the criteria for assessing future economic performance. The same criteria served the purpose of classifying other quarries belonging to the company.