Digging deep for more profits at Mount Shadwell

MORTLAKE’S Mount Shadwell quarry operation will be tweaked to make it more efficient and increase profits for Moyne Shire Council.

It generated more than $3 million in sales between 2008 and 2011 with the Mortlake power station and Macarthur wind farm among its major customers.

A major review of the popular quarry has found flaws in the management system and a new business plan was approved by councillors last week.

The review said the quarry, which started in the 1920s, had sufficient reserve land to continue operations for more than another 50 years.

There are more than 350 clients on the books who paid more than $1.27 million in 2010-11 for materials loaded at the quarry.

It provides a cheap source of road-making material for the shire’s own needs and its profits sponsor local sports clubs and community events.

The shire gains a direct dividend of 28.6 per cent of gross sales, but the audit suggests the dividend should be based on a percentage of gross profit.

Recommendations include appointing the shire’s engineering and design manager as quarry manager, extending the hours of operation, more stockpiling and rationalisation of the product types and pricing adjustments.

pcollins@standard.fairfax.com.au

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