This is
an overall explanation of the granite business. We can divide it in
four major categories:
Each of the above is a business on each itself.
1 – Quarrying the
blocks.
This means owning the mineral rights, issued by the
Federal Government of Brazil, which guarantee the right to explore the
mineral reserves. To obtain these rights, one should go to all the
projects that are involved, and only after analyzed and approved by The
Minister of Mining and Energy Department, the final rights are issued
and published at the Brazilian Government Journal.
To discover and select the right areas is the solely responsibility of
the claimer. In this case, the areas, which are been offered to you,
represent over 15 years of field experience and these stones are
directed to the worldwide market.
To start a quarry, one should expect to spend US$300,000.00 in
equipment and initial operational capital costs, for an expected
production of up to 200 cubic meters per month. To double this
production, another US$200,000.00 would have to be put down. Production
will depend on marked demand, with quarries actually producing from 50
up to 2000 cubic meters per month. These figures will depend upon the
reserves of the stone and the difficulties involving quarrying the
blocks at the field.
Typical production costs at the quarry range from US$120.00 to
US$200.00 per cubic meter and the selling price between US$400.00 to
US$700.00 per cubic meter.
The stones in form of blocks are than sold to either the fabricating
plants or to the stone distributors. The former will cut the stones
into slabs, normally 2 and 3 inch thick, and will export the slabs
packed in containers around the globe. The distributors will sell the
blocks to others processing plants around the world.
2
– Fabricating
The main operation of the processing plants is to
cut the stone blocks into slabs, as stated above, and sell it to the
national market and to many countries around the world.
The big fabricating companies operate their own quarries, this way
providing their own material to themselves, but also buying blocks from
others suppliers.
A good size factory, let´s say that would produce around
60.000 ( sixty thousand ) square meters worth of slabs monthly, would
cost around 6 million dollars to assemble, the real state and all brand
new equipment included. The rough selling price of this production
would be around US$3 million monthly. Expected profit around 25%.
3 –
Selling the fabricated stone.
Depending on the size of the factory, the slabs are sold to others
factories, which are also distributors, to big real state developers
and to warehouses, which will sell to many installers.
4
– Installation of the stones.
This area is well split between thousands of installers, small and big
ones. The big ones normally will by the stones cut to size directly
from the factory and the small ones will normally buy the slabs from
the distributors and process them at their own business.
From the above resume, we can see that without the quarry, all the
remaining businesses won’t exist. So it´s very
important for the big factories to own quarries or to be associated
with good quality stone block suppliers to feed their industry. Brazil
is worldwide known to own some of the best dimensional stones reserves
in the world . Just as an example, the only country that produces the
yellow granite is Brazil, due to it´s geological age and the
minerals components of Brazil´s soil.Granite business has
been growing worldwide at a rate of 6% yearly and all forecasts show a
steady rate of growth for years to come. In Brazil it has been growing
for the last 8 years at a rate of 25% yearly.The areas I´m
offering you have been carefully selected over15 years of fieldwork,
with stones absolutely unique and with very high intrinsic value, plus
reserves of billions of dollars at low quarrying costs.
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