Worldwide, mining is a $1 trillion industry and Trillium Gold Mines is one of them. It’s an industry that needs to be tapped into for economic growth and development in developing countries. Building a mining company takes time and money, but it’s worth the investment because of the many benefits such as job creation, increased GDP, and revenue generation.
When building your mining company, one thing that you should consider is whether or not there are any environmental concerns about extracting minerals from your desired location. You want to take care of the land where you’re going to mine so you can keep coming back for years and years without harming it too much. Other things like mineral extraction techniques also need consideration before setting up shop on a property with rich mineral deposits underneath its surface!
How Is It Done?
Mining is one of the most profitable businesses in existence. The mining process can be very lucrative from the mineral to market value if planned correctly. But before we go into the reasons and benefits, let’s look quickly at what a company does.
A company buys or leases the land with minerals on it. They pay for the necessary permits to extract those minerals from the government. Once done, some employees come and harvest all the resources from the land. It can be free of charge – as per their contract with said company. Once employees have gathered these resources, they organize themselves into a convoy and head towards a drop-off point for their products.
At this point, depending on how much product has been gathered, the company will either have a storage facility to keep said products in, or they would sell it off immediately to the market. The selling of resources can be done through various means such as an auction, going directly to the refinery, or even contacting a commodity trader.
After selling the resources, the money is deposited into the company’s bank account, and everyone gets paid their share – from employees to shareholders.
Five Benefits of Building A Mining Company
Now that we know what a company does, let’s look at some reasons and benefits as to why you should start your own mining company like TGM V.
● A Stable Business
Mining is a very stable business. Unlike other businesses which can go up and down with the economy, mining remains relatively stable. People will always need resources for construction, home improvement, and other purposes. The price of minerals is often directly linked to inflation. If something goes up in value with the economy, so will the value of most minerals.
● Great Investment, The Greater Outcome
Mining companies are a relatively safe way to make a lot of money in a short space of time. On average, mining company shares can increase in value by around 20% per year over 3-5 years – this is enough to cover all running costs and leave a little for your wallet too.
● An Active Market In The Future
The market demand for minerals will only get higher as our global population grows and countries develop their infrastructure further. It means that you will always have an active market for your product.
● Less Number of Employees
As no physical labor is required on the company’s part, all you need is a few good employees. They will manage everything for you, and your business can be up and running without any extra hassle.
● Tax Breaks
Lastly, mining companies offer fantastic tax breaks, which can help reduce your taxable income. In some cases, it’s even possible to get a 100% write-off on all exploration costs.
So there you have it – five great reasons to start your own mining company. Not only is the process stable and lucrative, but it’s also a lot easier than you might think. All you need is a little bit of money to get started, and before you know it, you could be reaping the rewards.