Owning property of any kind can involve multiple benefits. Financial security is a big one for properties whose value is likely to remain stable or rise over time, and you also have the freedom to organize your property as you see fit, depending on zoning restrictions in place. However, there might be occasions to get value or income out of a property that has raw materials for extraction Knowing the steps involved in this process proves necessary to capitalize on the potential opportunities.
Identify Potential Assets
Extracting raw materials from a piece of property means first identifying them. If you’re looking to harvest trees for lumber or carpentry materials, you might need an arborist or professional to ascertain the species on your land. Raw materials are often more likely to be on or in the ground, so you might need a geologist. For instance, they might look over rocks and minerals for gravity, cleavage, shape, hardness, color, and luster.
Verify Ownership
After you identify potential assets and their market value, you must ensure you own them. Owning land often means owning the rights to any resources or minerals on or under the property, but this isn’t always the case. Mineral ownership is sometimes distinct from owning the land, especially where mineral exploitation or oil and gas drilling is common. Check with the proper government authorities and your attorney to ensure you can legally extract and sell the raw materials.
Handle the Paperwork
First, the physical extraction of raw materials from your property will involve some paperwork. You need to do the math to ensure you can pay for extraction costs and still sell raw materials for sufficient profit to make the endeavor worthwhile. Depending on where your property is, you might also need permits or communication with local utilities to ensure you don’t interrupt underground lines.
Rent the Proper Equipment
Resource extraction often requires industry professionals to use the right material processing equipment. Renting the proper equipment for a project is necessary for many reasons. They include protecting your property, keeping everyone safe, and harvesting resources to maximize their value without damaging them.
Hire Appropriate Personnel
Whoever identified your resources and material value might be able to organize their extraction, or they might refer you to someone who can. While you naturally want to spend as little as possible on extracting raw materials to have a high-profit margin, you can’t minimize the labor costs without risking the entire project. Ensure you have the right specialists to lead the extraction work correctly without hurting your property or resources before hiring general labor for any roles they can play.
Restore the Land
Many states and municipalities may have rules in place regarding the restoration of your land after raw materials are extracted from the property. You might be required to contour the land and place topsail or an acceptable substitute as you grade the worked area. Sometimes, you might need to reseed the land with native trees, vegetation, or crops. Careful property monitoring in the coming years can be necessary to ensure successful restoration.
