MINING AND QUARRYING COMPANIES
Running a Quarry or Mine: Despatch, Cash and Contractor Control
It is the pre-monsoon rush, contractors are booking trucks for the next pour, and your weighbridge clerk has a queue that runs out of the gate. Two buyers want priority, one driver says his load was short, and the cash book does not match the despatch book.
Here we look at cost per tonne, truck and loading schedules, weighbridge and despatch records, buyer credit, and how contractors and operators are supervised. Your managers are trained to run these. Mining permissions, safety standards and environmental rules need qualified professionals and the authorities.
Discuss your priorities ↗COMMON CHALLENGES
The pressures
we often see.
- 01Cost per tonne is estimated from fuel and wages, but blasting, crusher wear, haulage and royalty are not allocated, so selling price is set with an incomplete number.
- 02Weighbridge slips, challans and bills sometimes disagree, and the argument with a driver or buyer is settled by whoever shouts louder.
- 03Demand is seasonal and tied to construction cycles, so cash is generous in some months and tight in others without any plan for either.
- 04Hired excavators, tippers and crusher operators are paid on rates that nobody reviews, and idle hours are rarely counted.
- 05Builders and contractors buy on credit and stretch payments, while the diesel supplier and wage bill must be paid on time.
OUR FOCUS AREAS
Where the work
usually starts.
- 01A cost per tonne sheet that includes drilling, blasting, loading, crushing, haulage, royalty and overheads
- 02Reconciliation of weighbridge slips, gate passes and invoices at day end
- 03Hired machine hours versus tonnes produced for each machine and contractor
- 04Diesel issued per machine per shift against output
- 05Buyer-wise credit limit, ageing and who may release a load when the limit is crossed
- 06A pre-season cash plan that covers stock of aggregates, repairs and wages for the slow weeks
- 07Crusher downtime by cause, to separate wear from planning problems
- 08Who signs off on what: the site manager, the accountant and the owner
START THIS WEEK
Things you can do
before you call anyone.
- Compare last month's weighbridge slips with the invoices raised. List every tonne that was weighed but not billed, or billed but not weighed. Share the findings with your accountant before anyone else.
- Hypothetical example: you sell aggregate at ₹700 a tonne. Direct costs you counted are ₹520. Royalty, machine repair and haulage add ₹130 you had not allocated. Your real margin is ₹50 a tonne, not ₹180.
- Ask the site manager to note idle hours for each hired machine for one week. Compare against the rates you pay. Discuss with each contractor what counts as billable time.
- Sort your buyers by the amount outstanding and by how late they pay. Call the largest three personally. Agree one new rule: no loading beyond a limit without your approval.
A PRACTICAL ENGAGEMENT
Start with the priorities
that matter most.
We begin by understanding how your business runs today, find the gaps, and agree the scope in writing. Recommendations are shaped around your team, your resources and your goals.
- A cost per tonne template filled monthly from actual figures
- A daily despatch reconciliation sheet signed by weighbridge, accounts and site manager
- A buyer credit policy page listing limits, approvers and escalation steps
- A seasonal cash calendar showing expected receipts, big payments and the buffer needed
Not the right fit when: Business routines come second when the immediate issue is a permit, a safety incident, an environmental notice or a community dispute. Those need the authorities and qualified professionals before business routines matter.
Explore a business audit ↗LET’S MOVE YOUR BUSINESS FORWARD
