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Quarrying & Mining

Mining & Quarrying

Do you have a mining or quarrying business that undertakes research and development work? If yes, then you could be eligible for an R&D tax credits claim.

R&D tax credits for the quarrying industry

Turning big rocks into smaller rocks to sell may seem a straightforward process. But as an owner or operator of an aggregate production company, you will know this could not be further from reality.

Success in the mining and quarrying sector thrives on research and development (R&D). It often hinges on the result of substantial trial and error – an activity the government’s R&D tax credits scheme has been readily awarding since its introduction in 2000.

However, when it comes to making a claim for R&D tax relief, not every business owner in the mining and quarrying industries is taking the opportunities presented by this sizeable tax benefit. If that applies to you, then you could be missing out on tens of thousands of pounds to invest straight back into your business and spend however you choose.

 A large, yellow quarry dump truck at work, transporting materials at a mining site.

R&D tax credits for the mining industry

Among the main reasons why mining and quarrying companies hesitate to make an R&D tax credits claim is that the stereotypical image of research and development is one of white lab coats rather than hi-vis jackets.

Both mining and plant production processes carry an uncertainty of failing to produce material that passes laboratory testing. Even when this happens and materials no longer meet the company’s commercial needs, there is still plenty of potential for a claim.

To eliminate this uncertainty, aggregate companies often employ numerous team members in a perpetual trial-and-error process. Wages of quarry managers, production managers, lab analysts and other engineers typically qualify for an R&D claim, along with expenses paid to third-party technical consultants.

A worker with a clipboard walks through an open pit mining site, discussing operations with a colleague.

What R&D mining projects can be claimed as tax credits?

Attempting any of the following activities can be classed as a research and development project:

  • Reducing the environmental impact of mining and extraction
  • Renewing technology in line with other industries to ensure efficiency is maintained
  • Discovering new seams of resources in innovative ways which do not impact on the environment
  • Reducing the mining waste traditionally produced by extracting minerals from the earth
A person seated at a table, writing on a clipboard with

What R&D mining expenses can be claimed as tax credits?

In the mining and quarrying sector, as well as the personnel-related costs outlined above, much of the R&D expenditure will be incurred in developing new technology to reduce environmental impact and to prolong the lifetime of the process. For example:

  • Replicating existing machinery with newer and more efficient models
  • Developing a machine that can undertake processes previously done by employees
  • The use of robotics in measuring and monitoring mines
  • Using technology to clean up the traditional mining waste
  • Innovating technology or methods which make the extraction of the material more efficient and effective
A calculator rests on top of handwritten calculations, which are focused on computing an R&D RDEC tax credit claim. The image illustrates the process of diligently calculating and preparing documentation for the RDEC tax credit claim related to research and development activities.

Expert support claiming R&D tax credits for mining or quarrying companies

Although it may appear a daunting process to launch an R&D tax credits claim, that is not the case when you have an expert team such as randd acting on behalf of your company.

We have vast experience in compiling and submitting claims for clients in the mining and quarrying industries, who are reimbursed an average of around £50,000 per claim.

Contact our team of experts by calling us on 01332 409 711 or emailing claim@randduk.com