The Mt Magometon quarry has been in operation for approximately 50 years. During the last 10 years Council have enhanced the existing operation, with the installation of a new crushing plant and the renewal of mobile plant. A new DA approval, issued by Council in 1999, permits the extraction of up to 85,000Tpa, this being approximately 50,000 tonnes more than had previously been removed. With this new approval, and recent changes to road construction techniques across the Shire, extraction has been increased to an average of approximately 70,000Tpa. Whilst the quarry has been of great benefit to the Council over its life, as the only significant source of high quality aggregate and roadbase, it is important that Council continue to gain an economic benefit from their investment, whilst also achieving the most beneficial use of this scarce resource. This Plan hopes to provide direction to the ongoing operation of Mt Magometon quarry in the medium term to achieve these aims.
During the last few years, the construction techniques used on Council’s local and regional roads has been modified. This has resulted in a more consistent requirement for roadbase than has previously been the case. In addition, the introduction of a significant works program by the RTA has also increased the need for quarried roadbase. In recent years, the production of quarry material has been between 50,000 and 80,000T. This is approximately the level of production expected for the long term, sustainable reconstruction of Council’s road network. The major products produced have been roadbase and sealing aggregates. By products such as crusher dust are also sold at a discounted rate. Annual revenue has been relatively consistent in recent years at approximately $1 - $1.1million, with around half of this being private sales and the remainder being used by Council. Annual operation costs have been relatively consistent, being around $700-$800,000 per annum (excluding depreciation, loan repayments and stockpile adjustments). It can be seen that private sales currently cover a substantial portion of the cost of the existing operation. Given the substantial rock reserves still available on the site, it is recommended that these private sales are continued. Coonamble Shire Council Quarry Management Plan 2009/10 15/3 04/09 11:20 AM Annual net profit has fluctuated somewhat but have been relatively steady in recent years at around $2-300,000. This represents a return on capital of around 9-13%, which is considered appropriate for a commercial venture such as Mt Magometon. It is felt that this is an appropriate target for future returns. Staffing levels at the quarry are based on four operators plus a Production Manager. This provides for the operation of the three items of mobile plant, the main crushing plant, and the weighbridge. There is sufficient exibility
within the existing workforce to enable the operation to continue, albeit at slightly lower production, with only four operators in the event of an absence at short notice. It is not felt that there is any need for change in staffing levels in the immediate term. There are a number of areas of the existing operation that are undertaken under contract. These include:
1. Drilling and blasting operations
2. Crushing of oversize rock
Both of these operations require highly specialised equipment with a large capital cost. Given the relatively low frequency of this type of work (typically once or twice per annum), it is unlikely that the potential savings would justify the purchase of such equipment by Council. As a result, it is suggested that these contract works continue to be undertaken as required.
