- Published: Monday, 13 December 2010 12:28
- Written by Mark Kuhar
Have you always had a hankering to get into the aggregates business in Mississippi? This might be your chance. DK Aggregates LLC tells Rock Products that it has retained Equity Partners Inc. to sell, or seek equity or a joint venture partner for, its 1,700-acre sand and gravel business located off Highway 607, near Nicholson, Miss., in the Stennis Space Center Buffer Zone (no development is allowed in the Buffer Zone, but natural resources harvesting is allowed, including mining, timber, farming, etc.). The current owner acquired the property in 2003 and invested more than $3 million in infrastructure and equipment. The operation employs between 10 and 30 people depending on projects in house. Prior to the acquisition, the property had been harvested for timber and used for corn farming.
According to third-party drill reports in the information book provided by Equity Partners, the proven gravel reserves on the property are approximately 18 million tons, and proven frac sand and other sand reserves are 30 million tons. The drillings supporting these estimates were done on only 500 acres of the property. Another 600 acres is believed to have similar reserves as described above. DK’s property also includes an additional 600-acre-area suitable for a landfill and some of the preliminary excavation and permitting was completed for that purpose.
According to Ken Mann, a Partner at Equity Partners, Inc, “This is an outstanding opportunity to capture gravel and sand reserves with an operating aggregates business in a location with substantial demand, as well as outstanding acreage for a well-located landfill operation. There are numerous potential opportunities for synergistic partners.”