How To Start A Sand And Gravel Business Philippines [& QUARRY] (2024)

How To Start A Sand And Gravel Business Philippines [& QUARRY] (1)

Cebuano English Filipino

There are many great businesses to start in the Philippines. However, how to start a sand and gravel business in the Philippines is a growing question, so today, we will be addressing this question by exploring the process of how to start a sand gravel business in the Philippines, and we will also be diving into how to start a quarry business in the Philippines for complete beginners.

How To Start A Sand And Gravel Business In The Philippines

1. Research The Industry And Wider Market

The first step for any successful business in the Philippines is full market research, including the industry and the wider markets. Previously we have explored the process of how to conduct market research for small businesses in the Philippines, and I have added the link above for your reference. Nevertheless, here are some key points to consider.

  • Are There Gaps Within The Market?
  • Can Government Policy Impact The Gravel And Market Business In The Philippines?
  • Is The Industry Growing, Declining, Or Stabilising, And Why?
  • What Are The Laws That Can Affect The Market?
  • What Is The Demand For Sand, Gravel, And Other Materials?
  • What Services And Products Are Currently Being Offered In This Industry?

These are a few basic questions; however, asking these simple but useful questions can help you make better decisions during the planning stages of starting a gravel and sand business in the Philippines. Once market research has been completed, the next stage is to get your research and ideas on paper and create a business plan.

2. Create A Business Plan And Financial Statement

Some small businesses in the Philippines cost a lot of money to start but have low maintenance costs; other businesses can be started very cheaply but have higher maintenance costs. Creating a business plan and financial statement will allow you to understand the full costs of starting a sand and gravel business / the full costs of starting a quarry business in the Philippines.

Filipino Wealth has a free downloadable business plan and financial statement available to readers. However, below are the leading questions asked when starting a gravel business in the Philippines.

  • How And When Will My Business Make Money, And What Will The Profit Be?
  • Is This A Good Business For Me And My Experience?
  • What Are The Income Opportunities For The Sand And Gravel Business In The Philippines?
  • What Are The Opportunities And Threats To Your Business?
  • What Are The Reasons This Business Will Fail?
  • What Areas Of The Sand, Gravel/Quarry Market Am I Not Confident In?
  • What Will It Take For This Business To Succeed?
  • Who Are The Competition, And What Are Their Strengths And Weaknesses?

When creating a business plan for a quarry business in the Philippines, it’s always a good idea to be open and honest. Gaps in knowledge are not to be seen negatively. On the contrary, highlighting your inexperience can save you a lot of time and money in the long run. Once you have your business plan, it is time to head back to research, but this time it’s on law and regulation.

3. Research Industry Licences And Business Law

There is a great deal of law that you may wish to investigate when starting a sand and gravel business in the Philippines. Today we will explore licenses and laws that cover this topic. However, as this industry is continuously changing, we recommend speaking to the Department of Environment & Natural Resources and other government entities to ensure safe, legal practices.

Republic act no. 7942 – Section 46 covers the permit for commercial sand and gravel. And states, “The provincial governor may grant any qualified person a permit to extract and remove sand and gravel or other loose or unconsolidated materials which are used in their natural state, without undergoing processing from an area of not more than five hectares and in such quantities as may be specified in the permit”.

Executive order no. 224 also covers “rationalizing the extraction and disposition of sand and gravel/lahar deposits in the provinces of Pampanga, Tarlac, and Zambales”. DENR Administrative Order No. 2000-25 also covers material law and other similar topics such as mining.

When it comes to licenses, businesses in the Philippines will need an existing environmental Compliance Certificate issued by the Department of Environment & Natural Resources. You will need to apply via the industrial sand and gravel application (IPA-SAG) to gain this requirement. The official application website states that anyone qualified may apply for an industrial sand and gravel permit for areas covering more than 5 hectares but not exceeding 20 hectares.

Additionally, licenses and requirements may differ from area to area. DTI has recently launched a free mentoring program. If you are having difficulty at this stage, you may find using a free service such as this useful in starting a sand and gravel business in the Philippines.

4. Find The Suppliers / Quarry Businesses

This stage is optional. This is because businesses operate differently, and therefore there may be different stages depending on what type of business you plan to manage.

For example, if you are looking to sell the sand and gravel without getting involved in the extraction and quarry process, the next stage is to find suppliers. However, if you want to start a quarry business in the Philippines, you may want to head to the next stage, where we will cover quarry businesses in the Philippines.

5. Create Your Sales Channels And Network Your Business

One of the most important parts of a successful business is its sales. So when setting up a sand and quarry business, it’s time to create your sales channels, network with other businesses in the industry, and start earning income from your new business.

Networking is extremely important in the Philippines. The reality of business is that it’s not always what you know but who you know, especially in the gravel and sand business. However, there are many other ways to build a business, including a website and social media.

From our research looking through hundreds of different sand and gravel businesses in the Philippines, it’s clear that many businesses have been in this industry for many years; however, when it comes to technology (including suitable websites and active social media), they fall behind leading to opportunities for tech-savvy entrepreneurs.

Another option for entrepreneurs if you are not looking to start a quarry business in the Philippines is to open a construction e-Commerce store. Const.PH is a great example of how this type of business can be managed successfully.

How To Start A Quarry Business In The Philippines

Starting a quarry business in the Philippines is similar to starting a sand and gravel business. Still, it has some big differences. One of those differences is the laws and requirements, which are important to investigate when starting any new business.

Earlier on, we mentioned Republic Act No. 7942. We focused on Section 42, but if you are opening a quarry business in the Philippines, this full Republic act is something you may wish to read. It covers some important quarry business points, including local laws and requirements.

Additionally, business owners will need to apply for a permit from the mining regulator board. It’s highly recommended to seek assistance when opening this type of business as illegal extraction and removal of materials can come with a financial fine or, in serious cases, imprisonment.

One of the main areas for consideration when opening a quarry business is the business’s cost and return on investment. Hiring or purchasing machinery is essential but can be costly. In some cases, it can take several months or years before you start to see a return on investment, which entrepreneurs need to consider.

How Much Does A Sand, Gravel, Or Quarry Business Cost To Start?

When starting a sand gravel or quarry business in the Philippines, a mixture of costs will impact the total cost of starting the business.

If you start a simple buy and sell business, your cost will be minimal. You will not need to pay or hire machinery. However, if you want to open up a quarry business, you need to hire or purchase pieces of machinery such as grinders and crushers. Each vehicle has different capacities/load space, which can impact the cost of starting this type of business.

From research, we found that hiring a digger/excavator/crusher and so on costs anywhere between 1000 – 3000 pesos per day per vehicle. So, for example purposes, the cost is 2000 pesos per vehicle. Therefore, if we opened up a small operation including 3 vehicles for 30 days, the cost would be at least 180,000 pesos.

This is for example purposes only. The total cost will depend on the size and type of business you are planning to open.

What Is The Profit Of A Sand, Gravel, Or Quarry Business In The Philippines?

Even though this may not be the most glamorous of businesses in the Philippines, the sand and gravel business and the quarry business can be profitable; however, this will depend on many factors, including the current market value, supply, and demand.

If you are looking to start a larger business or a small quarry business in the Philippines, you will need to pay for machinery equipment and other startup costs that can quickly add up. Therefore the return on investment may take some time.

When looking at the profit of a sand and gravel business in the Philippines, another consideration is the product’s price. We found that, on average, 1 cubic meter of sand costs 750 – 1200 pesos from research. Gravel ranged from 400 – to 750 pesos per cubic meter. The costs differ depending on the types of gravel and sand – different grades have different prices. Prices exclude delivery.

How To Start A Sand And Gravel Business Philippines [& QUARRY] (5)
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Lead Writer at Filipino Wealth

Hi, I'm Jamie. I'm the writer here at Filipino Wealth. I've been a business owner, investor, and researcher for the last 15 years. Across the posts, I share the facts, data, and tips on business and investments in the Philippines.

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How To Start A Sand And Gravel Business Philippines [& QUARRY] (2024)

FAQs

How do I start a sand and gravel business? ›

Start a Gravel Pit Business by following these 10 steps:
  1. Plan your Gravel Pit Business.
  2. Form your Gravel Pit Business into a Legal Entity.
  3. Register your Gravel Pit Business for Taxes.
  4. Open a Business Bank Account & Credit Card.
  5. Set up Accounting for your Gravel Pit Business.
Aug 3, 2021

How do I start a quarry business? ›

To avoid that, here are some tips on how to start your quarrying business properly.
  1. Get the Right Equipment. Quarrying will require heavy equipment. ...
  2. Have a Plan. All businesses need a plan if they want to succeed and quarrying is an exception. ...
  3. Do Some Market Research. ...
  4. Acquire a Site.
Mar 25, 2020

Is quarry a good business? ›

Quarrying provides materials the construction world needs for its projects. In fact, there's a global demand for it. The business creates jobs and provides economic opportunities. It also requires the use of both skilled and unskilled labor, making it a good move for those seeking work in the construction industry.

How do you start a sand company? ›

Sand manufacturing is a profitable business.
...
Sand Making Business Registration & License
  1. Incorporate the firm with ROC.
  2. Obtain Trade License from Municipal Authority.
  3. Apply for Udyog Aadhaar MSME. This is optional. ...
  4. Obtain GST registration.
  5. Apply for 'NOC' from State Pollution Control Board.
  6. Apply for BIS certification.

How much is gravel and sand in the Philippines? ›

Sand and gravel price list in the Philippines
Material DescriptionUnitAve. Price in 2018 (Php)
Gravel 1/2"cu.m.418.00
Gravel 3/4"cu.m.430.00
Gravel 3/8"cu.m.450.00
Fine Aggregatecu.m.460.00
5 more rows
Mar 22, 2022

How does a quarry make money? ›

Removing, selling and shipping rock to a variety of markets that need the material for their projects gives you a way to make money from your stone quarry. Identifying the type of rock in your quarry is key to figuring out its potential use and deciding who will buy.

How much money do quarries make? ›

Quarry Salary in California
Annual SalaryMonthly Pay
Top Earners$112,844$9,403
75th Percentile$66,816$5,568
Average$53,615$4,467
25th Percentile$35,140$2,928

How much is a quarry worth? ›

Mineral commodities are classified as high-value, low-volume or low-value, high-volume. With current (2016) prices of about $1,100/oz.

What do gravel companies do? ›

Sand and gravel enterprises operate in one of two main ways; they either limit the scope of their business to the storage and delivery of sand, rock and gravel, or they take part in the actual quarrying and manufacture of the raw material.

How long does a quarry last? ›

A quarry's lifespan can range from under a decade to over 50 years' worth of resource supplying. In the United States alone, there are approximately 100 metal mines, 900 mines and quarries producing industrial minerals, and 3,320 quarries producing crushed rock such as sand and gravel.

What is a sand quarry? ›

A quarry is a place where rocks, sand, or minerals are extracted from the surface of the Earth. A quarry is a type of mine called an open-pit mine, because it is open to the Earth's surface.

How do you sell sand? ›

How do I sell sand online? You can start selling sand online by setting up an ecommerce website, such as a Shopify store, and uploading your sand products so they are discoverable by people searching for sand on search engines like Google and on social media.

Are gravel pits profitable? ›

How much profit can a Gravel Pit Business make? Profits vary considerably; net margins range from about 10 to 35%. You might earn $25,000 to $100,000 after expenses. Relatively large facilities have the potential to produce over $1 million in revenue.

What is gravel and sand? ›

Sand is a granular material derived from the erosion of rocks, ranging in size from 0.075 mm to 4.75 mm. Sand particles are larger than silt but smaller than gravel. Gravel is a granular material derived from the erosion of rocks, ranging in size from 4.75 mm to 75 mm.

Which is more expensive sand or gravel? ›

Gravel (depending on the type) runs between $10 and $50 per ton, while sand goes for between $5 and $30 per ton. Again, you might find sand cheaper or more expensive than gravel, but not by significant amounts depending on each type.

How much is sand per cubic Metre in Philippines? ›

Sand Construction use P150. 00/cu. m.

What is the cost of gravel? ›

There are several different types of material for a driveway and the price can run between $0.40 and $2 per square foot. The gravel material is usually priced by the cubic yard or by the ton. Crushed clamshells or plain pea gravel costs around $40 per cubic yard or $50 per ton.

What is royalty in quarry? ›

Royalty on quarrying / mining is collected by the State Government for right given to the applicant to extract mineral and is payable based on quantum mineral removed or consumed.

How is quarrying done? ›

The quarrying technique consists of drilling and blasting to fragment the rock. A large number of charges are fired at one time, producing up to 20,000 tons of broken stone in one blast. The broken stone is crushed into smaller pieces that are separated into uniform classes by screening.

What is an aggregate quarry? ›

Quarrying is part of the wider extractive industry and the natural stone, gravel and sand that comes from a quarry are known as 'aggregate'.

What is a quarry in construction? ›

Quarrying is the process of removing rock, sand, gravel or other minerals from the ground in order to use them to produce materials for construction or other uses. So, a quarry is any such working on the surface of the earth where minerals are extracted.

How much does a quarry owner make UK? ›

Quarry managers can earn between £30,000 and £50,000. With several years' experience, you can progress to unit manager (several quarries or a very large operation). A quarry manager salary can exceed £50,000, sometimes exceeding £100,000 for some very senior roles.

Are limestone mines profitable? ›

Due to its desirability for use in building, a large limestone find could yield tens of billions of dollars for the quarry's operator. That would be quite a profit indeed on a $50 million potato field.

How is sand and gravel extracted? ›

Sand and gravel typically are mined in a moist or wet condition by open pit excavation or by dredging. Open pit excavation is carried out with power shovels, draglines, front end loaders, and bucket wheel excavators. In rare situations, light charge blasting is done to loosen the deposit.

What are the different sizes of gravel? ›

The U.S. Department of Agriculture and the Soil Science Society of America define gravel as particles from 2 to 80 mm (0.079 to 3.150 in) in size, while the German scale (Atterburg) defines gravel as particles from 2 to 200 mm (0.079 to 7.874 in) in size.

How do you speak quarrying? ›

How To Pronounce Quarry - Pronunciation Academy - YouTube

Is quarrying good or bad? ›

Quarries are bad for the environment in several ways. They abruptly interrupt the continuity of open space, ruining habitats for flora and fauna, cause soil erosion, air and dust pollution, damage to caves, loss of land, and deterioration in water quality.

What is difference between mining and quarrying? ›

Mining is the process of extracting buried material below the earth surface. Quarrying refers to extracting materials directly from the surface. In mining and quarrying, water is used and gets polluted in a range of activities, including mineral processing, dust suppression, and slurry transport.

What is quarry permit? ›

(as) "Quarry permit" means a document granted to a qualified person for the extraction and utilization of quarry resources on public or private lands.

How deep can a quarry go? ›

Water-filled quarries can be very deep, often 50 ft (15 m) or more, and surprisingly cold, so swimming in quarry lakes is generally not recommended.

What happens when a quarry is finished? ›

Some abandoned quarries are reclaimed to become leisure areas. First, the quarry must be made safe and restored back to a condition where the land can be used. This is achieved through careful drainage and land management and then plans can be made to transform the quarry into a usable leisure area.

How are quarries made? ›

For millions of years, a combination of heat and pressure created blocks of natural stone, including granite, marble, travertine, limestone, and slate. As the earth's crust began to grow and erode, it pushed minerals up from its core, forming massive rock deposits, which we refer to as “quarries”.

Where can I sell my SAND? ›

You can sell your $SAND tokens at a cryptocurrency exchange. Such as Binance, Huobi, ToktoCrypto, Bitmart and so on.

How do I calculate how much SAND I need? ›

Use this simple formula:
  1. Length x Width = Square Footage.
  2. Square Footage x Depth (in feet) = Cubic Footage.
  3. Cubic Footage / 27 = Cubic Yards.
  4. Cubic Yards x 1.35 = Amount of Tons Needed (in this instance, a cubic yard is equal to about 1.35 tons of sand.)
  5. Area Length x Area Width = Square Footage.
Mar 5, 2020

How much can you sell SAND for? ›

Per Ton. The price for sand ranges between $5 to $30 per ton, depending on the type.

How deep is a gravel pit? ›

Often sand and gravel quarry operators hit ground water during their digging, converting the pits into swimming ponds, some as deep as 400 feet.

How does a gravel pit work? ›

As workers dig down below the local water table, these pits gradually fill with water, which can make mining difficult. In this type of situation, workers may dredge the gravel from below and simply allow the water to fill the pit.

How are gravel pits formed? ›

Crushed stone, sand and gravel were formed by geologic processes. Volcanoes, glaciers, wind, rivers and seas formed the shape and character of rock materials over millions of years. The gravel used today may have been deposited thousands of years ago – just yesterday geologically.

Where can you easily find sand and gravel? ›

Sand and gravel deposits found on beaches or in rivers and streams, are mostly quartz (silicon dioxide, SiO2) grains. Weathering of rocks such as granite forms these quartz grains. In the process of weathering, the softer, weaker minerals in granite (such as feldspar) are weathered away.

How many types of sand are there? ›

In the United States, sand is commonly divided into five sub-categories based on size: very fine sand ( 1⁄16 – 1⁄8 mm diameter), fine sand ( 1⁄8 mm – 1⁄4 mm), medium sand ( 1⁄4 mm – 1⁄2 mm), coarse sand ( 1⁄2 mm – 1 mm), and very coarse sand (1 mm – 2 mm).

What are the properties of sand and gravel? ›

Characteristics. Generally, sand and gravel consist of an unconsolidated accumulation of rounded or semi-rounded rock fragments that result from the natural disintegration of rock (see entry on Weathering). Sand and gravel can be described in terms of texture and composition.

How do you start hauling gravel? ›

Below are the important factors to consider to ensure success of your dirt hauling business:
  1. Create a Detailed Business Plan. ...
  2. Have a Commercial Driver's License. ...
  3. Get a Dump Truck License or Permit. ...
  4. Purchase Your Own Dump Truck. ...
  5. Department of Transportation Number and Fuel Tax Sticker. ...
  6. Setup Your Price List.
Aug 9, 2020

How do you sell sand? ›

How do I sell sand online? You can start selling sand online by setting up an ecommerce website, such as a Shopify store, and uploading your sand products so they are discoverable by people searching for sand on search engines like Google and on social media.

What do gravel companies do? ›

Sand and gravel enterprises operate in one of two main ways; they either limit the scope of their business to the storage and delivery of sand, rock and gravel, or they take part in the actual quarrying and manufacture of the raw material.

What is nature business? ›

The nature of a business describes the type of business it is and what its overall goals are. It describes its legal structure, industry, products or services, and everything a business does to reach its goals.

Is sand and gravel hauling profitable? ›

Gravel hauling can be a very profitable business if you know what you are doing. In order to rock a good living in the industry, it's important to have three vital factors in place – a market, a source, and a Dump Truck.

How do I start my own trucking company? ›

How to start a trucking company in 5 steps
  1. Step 1: Write a business plan.
  2. Step 2: Register your business.
  3. Step 3: Obtain business licenses, permits, and insurance.
  4. Step 4: Choose the right truck.
  5. Step 5: Secure startup funding.
  6. There's a major shortage of drivers.
  7. There's a need for innovation in the industry.

Where can I sell my SAND? ›

You can sell your $SAND tokens at a cryptocurrency exchange. Such as Binance, Huobi, ToktoCrypto, Bitmart and so on.

How do I calculate how much SAND I need? ›

Use this simple formula:
  1. Length x Width = Square Footage.
  2. Square Footage x Depth (in feet) = Cubic Footage.
  3. Cubic Footage / 27 = Cubic Yards.
  4. Cubic Yards x 1.35 = Amount of Tons Needed (in this instance, a cubic yard is equal to about 1.35 tons of sand.)
  5. Area Length x Area Width = Square Footage.
Mar 5, 2020

How much can you sell SAND for? ›

Per Ton. The price for sand ranges between $5 to $30 per ton, depending on the type.

How much is a quarry worth? ›

Mineral commodities are classified as high-value, low-volume or low-value, high-volume. With current (2016) prices of about $1,100/oz.

What is a sand quarry? ›

A quarry is a place where rocks, sand, or minerals are extracted from the surface of the Earth. A quarry is a type of mine called an open-pit mine, because it is open to the Earth's surface.

How much money does a gravel pit make? ›

How much profit can a Gravel Pit Business make? Profits vary considerably; net margins range from about 10 to 35%. You might earn $25,000 to $100,000 after expenses. Relatively large facilities have the potential to produce over $1 million in revenue.

What are the things to consider in opening a business? ›

9 Indispensable Factors to Consider Before Starting a Business
  • A Business Idea.
  • Knowledge or Expertise.
  • Market or Demand.
  • Start-up Costs.
  • Capital and Finance.
  • Competition.
  • Location.
  • Staff.
Oct 17, 2018

What motivated you start your business? ›

Sense of Accomplishment. Knowing you created a successful business and earning the respect of friends and business acquaintances are factors that motivate a person to become an entrepreneur. They feel that they are offering a valuable service to their customers, and they pride themselves on doing the best job possible.

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