Quarrying & Mineral Extraction Tenders: A South African Guide

The Opportunity in Quarrying and Aggregate Supply

While deep-level mining often dominates headlines, the quarrying sector is the backbone of infrastructure development. Every road built, every bridge constructed, and every foundation laid requires aggregate, sand, and stone. For distinct reasons, government infrastructure projects create a constant demand for quarrying services and material supply.

Understanding Mining Permits vs. Rights

For smaller-scale quarrying operations (less than 5 hectares), you typically don't need a full Mining Right. Instead, a Mining Permit is the appropriate authorization.

• Mining Permit: Valid for 2 years, renewable for 3 more. Ideal for borrow pits and small sand mining operations.
• Mining Right: Required for larger operations extended over longer periods.

Most municipal tenders for road maintenance ('regravelling') will require the contractor to either own a licensed borrow pit or source from one. Having your own permit acts as a massive competitive advantage.

Key Tender Categories for Quarrying

1. Municipal Road Maintenance

Municipalities regularly issue tenders for the 'Supply and Delivery of Road Building Material' (G5, G7 sub-base, etc.). These contracts often run for 3 years.

2. SANRAL Projects

Major highway upgrades require millions of tons of aggregate. SANRAL tenders usually specify strict grading requirements for the stone, meaning your quarry must have testing certificates ensuring material quality.

Environmental Compliance is Critical

Quarrying is an invasive activity. Your tender bid must demonstrate:

• Environmental Management Plan (EMP): Approved by DMRE.
• Water Use License: If your operation impacts water courses or uses significant water for dust suppression.
• Financial Provision: Proof that you have set aside funds for rehabilitation after closure.

Pricing Quarry Tenders

When bidding on supply contracts, consider:

1. Transport Costs: Material is heavy and cheap. Transport often costs more than the stone itself. Proximity to the site is key.
2. rehabilitation Costs: Factor in the ongoing cost of sloping and vegetation.
3. Royalties: Remember the State Royalties driven by the Mineral and Petroleum Resources Royalty Act.

Conclusion

Quarrying tenders offer steady, long-term work, especially tied to the 3-year municipal budget cycles. Ensure your permits are valid, your tax affairs are in order, and you are ready to supply the foundation of South Africa's growth.