JP Anderson has acquired the operation rights to a granite quarry in Sierra Leone. The Kenema quarry consists of 267-acres of land containing approximately 70 million tons of granite stone (Approximately $2,000,000,000 in value).
JP Anderson intends on operating a plant with capacity of 250 TPH, operating in 8-hour shifts which can produce 2,000 Tons of product per shift. Priced at $32 per ton, each shift will generate approximately $64,000 of gross revenue. The quarry will operate Monday through Saturday with Sundays off. The demand for the finished product in the region can easily support the quarry to operate in 2 or 3 shifts per day. (We intend to operate the quarry in 2 shifts per day, 8 hours of operation with the remaining 8 hours for maintenance). The estimated revenue per 8-hour shift is $64,000, which equals in approximately $20 million annually. Expenses are estimated at 25%, which will yield approximately $15 million in profits per shift. Our start-up and operating costs are extremely low for this type of operation due to the fact that land costs have already been taken care of and labor costs in Sierra Leone are extremely low. The top operating expense to run the plant and equipment is fuel. The granite supply at this location, if operating at this capacity, will last nearly 20 years.
Construction material production from granite stones:
Rock… To be used for building walls, bridge, retaining storages / walls Gravel… for Road, Driveways, Building Foundations Sand… All purpose construction work Block… For structural frame work, commercial and residential
JP Anderson has acquired the rights to this quarry and its initial objective is to install a 250-ton per hour crushing plant to be able to provide crushed granite for the large demand of infrastructure development projects throughout the region.
With health and safety in mind, our goal is to begin operations in the 2nd quarter of 2017. All necessary permits and equipment will be obtained during the 1st quarter prior to commencement of operations.
The Granite Crushing Plant consists of a cone crusher, vibrating screen, belt conveyor, stone vibrating feeder and more. Large granite materials are fed into the stone granite jaw crusher evenly and gradually by vibrating feeder through a hopper for primary crushing. After the first crush, the material will be transferred to the cone crusher by belt conveyor for the secondary crush; the crushed granite materials will then be transferred to the vibrating screen for separating. After separating, the parts that meet specific standards will be transferred away as final products, while the other parts will be returned to the cone crusher, thus forming a closed circuit. The size of the final products can be combined and graded according to specific requirements.
Drilling and Blasting
Drilling and blasting are two important parts of the quarrying process and so employees such as drillers and shot-firers undertaking these activities must be specifically trained in this area. These explosive experts drill holes in the earth and place explosives inside. The explosives are detonated to provide the smallest release of energy for the most efficient blast. The larger pieces of stone are released and removed by pit loaders and dumped into large haul trucks heading to crusher unit.
The Processing Plant
The rock arriving at the processing plant has to then go through the crushing process. The specialist quarry equipment used will depend on the size of the rocks being crushed and the desired size. The different sized stone is then separated by the use of screens. The stone is then stored in huge stockpiles according to the aggregate, such as rock, sand or gravel. Mixtures of sand, small gravel and cement can be formed into additional product lines and Cement block for construction.
Our intention is to begin operations at our Kenema Quarry, which is a 267-acre location with approximately 70 million tons of granite (Approximately $2,000,000,000 in value). An operating plant with capacity of 250 TPH, operating in 8-hour shifts can produce 2,000 Tons of product per shift. Priced at $32 per ton, each shift will generate approximately $64,000 of gross revenue. The quarry will operate Monday through Saturday with Sundays off. The demand for the finished product in the region can easily support multiple quarries operating in 2 or 3 shifts per day. (We intend to operate the quarry in 2 shifts per day, 8 hours of operation).
Weekly Estimated Revenue: $384,000 per 8-hour shift 1-Shift – $384,000, 2-Shifts – $768,000 Annual Estimated Revenue: 8-hour shifts 1 – Shift – $19,968,000, 2 –Shifts – $39,936,000
Weekly Estimated Operational Expenses: Estimated expenses per 8-hour shift approximately >25% operating costs
1 – Shift – $96,000 2 –Shifts – $192,000
Annual Estimated Operational Expenses: Estimated expenses per 8-hour shift Roughly 25% operating costs
1- shift per day, 6 days per week $4,992,000 2- shifts per day, 6 days per week $9,984,000
Estimated Annual Net Profits: $14,976,000 per shift 1- shift per day, 6 days per week $14,976,000
2- shifts per day, 6 days per week $29,952,000
West Africa Opportunity
- High Country Growth rates
- Worldwide Capital Sitting Idle
- Low Level of Access to the Fast Growing Economies
- Tremendous Asset Values
- Large Scale Infrastructure Development
The Market – The “Top 20” fastest growing economies in the World are all from Africa or Asia. This indicates that global economic growth will be driven by emerging markets and developing economies. West Africa has 5 of the 20 including: Ghana, Guinea, The Gambia, Ivory Coast and Sierra Leone.
During the U.S Africa Summit in August 2014, the U.S pledged a new investment of $14 billion dollars for infrastructure and energy projects.
Currently, there is no investment vehicle or link for investors to enter the Fast growing West Africa marketplace.
Doing Business in Sierra Leone
As you can imagine, business in Sierra Leone and most of West Africa is done a little different then we do here in the U.S. It is important to clarify that in the areas we are working in, such as the Granite Quarries; an individual or a corporation cannot purchase the land itself. In fact, the government has no say or rights to the lands or assets on the lands. Outside of the main cities, the families that have lived on the lands for hundreds of years manage or are the custodians of the land and the assets.
Business people like JP Anderson negotiate the rights to operate their business on the lands by mining or farming the lands for a piece of the profits. In our model, we have negotiated the rights to operate our business, extract the assets and share the profits with the people that live on the lands. In our commitment to the people, we have agreed to bring in all of the necessary equipment and management, mine the quarries, sell the assets and pay the people 5% of the profits as well as contributing an additional 5% to the community for social responsibility projects, such as, clinics, schools, etc. In addition, we agree to hire as many local laborers as we need to provide jobs to the residents. This is a typical relationship that exists in the West African countries and as you can see, incredibly lucrative to the operator.
With nearly three years in operations in Sierra Leone, JP Anderson has developed very deep relationships with the people and in doing so has developed the trust of the people and the country.