Quarry Economics
Royalties and Valuation
A royalty is a payment made by a lessee to a lessor for the right to extract and sell minerals from a piece of land. Royalties should be between five and 25 per cent of the ex-works revenue for the quarry which is often akin to saying royalties should be between 50 cents and $10 per tonne, depending on location.
Market value is estimated by evaluating mineral resources, environmental factors, process, logistics and end-use specifications. A large limestone find could yield tens of billions of dollars for the quarry’s operator. That would be quite a profit on a $50 million potato field.
Environmental Impact and Sustainability
Quarrying causes environmental issues like water contamination and air pollution. When mining stops, the pumps turn off and quarries flood from cold groundwater. Underground forces from blasts can cause sinkholes or change drainage and water quality of aquifers.
Quarried limestone neutralizes acidity, so adds to soils or lakes. Limestone is used in iron manufacturing, cement, concrete and mortar mixes, and when heated with sand and sodium carbonate creates glass.
Benefits and Challenges of Quarrying
The market for limestone is consistent, which is a primary benefit of quarrying. Operations include drilling, blasting, loading, hauling, scaling and roof bolting. However, limestone reacts with acid rain, wearing away, which is a significant disadvantage.
Social impacts of quarrying include landscape alteration, biodiversity loss, wasteland generation, dust and noise pollution, accidents and illegal extraction. Large charges used in quarrying can result in noise and dust pollution, and dissolution of limestone affects groundwater by potentially creating caves and sinkholes.
Employment in Quarries
What is a quarry worker? Workers dig and process rock, slate, gravel and sand.
Sell decorative stone for facades, sidewalks, pathways, walls and landscaping. Quarries containing marble produce slabs for buildings and homes.