Sand & Red Earth is Money

MINING SAND

As promise, hereby I drawdown few information, where sand and mineral  can create income for long terms. The main idea is what we see in-front of us everyday. The hill, river, sea, lake, pond and others in the world, it is really use full to us. Now let start from here .....

Now day all construction works using sand and red-earth. Red-earth normally use as dumping for road making or cover up slope area. Red-earth you can get from few hill area at Junjung, Kulim, Relau and Bandar Baharu, Kedah. Range of area within 45 km to Batu Kawan. In this drawdown,  I’m focusing  Project of Penang 2^nd Bridge at Batu Kawan, Penang, Malaysia. At others place in the world I thing the process are the same. 

How about sand? First of all there are four (4) type of sand as below :-

1. Hill Sand    –  75% sand ; 25% others mineral (dumping sand)
2. River sand  –  85% sand ; 15% others mineral (dumping & course sand)
3. Mining sand –  95% sand ; 15% others mineral (course sand & fine sand)
4. Sea Sand - 90% sand; 10% others mineral (reclamation use)

The engineer of project will conduct a visit to site (stockpile area) and getting a sample to test out before any Purchase Order (PO) can be issue out. Normally the report of sample within two (2)  working days. The process is simple, coz in trading area, there are between supplier and purchaser only.

O   Let start talking about Supplier, who make money out of this transaction. The market for Red Earth and sand for Batu Kawan area, in Penang as below :-    

1. Red Earth                     - $18.00 per Metric Ton
2. Sand (dumping sand) - $22.00 per Metric Ton
3. Sand (course sand)    - $30.00 per Metric Ton

Normally profit margin is between 5% - 25% of the purchase order (PO) value. It’s make every one try to take some figure, out of that profit. So I will share what was happen to the actual market if this is happen again and again. After all, supplier make money coz everything in cash term.