Lower taxes in the aggregates industry could encourage smaller companies to get involved in mineral extraction.
That is to be inferred from a new investigation by the Office of Fair Trading (OFT), which indicated that there are currently "high barriers to entry" in the sector, due to the national system controlling mining and quarrying.
Aggregates are materials formed from natural rock that are fundamental to construction projects, including infrastructure works such as road and home building.
The Telegraph reports that the UK market, worth £4.8 billion in 2008, is currently dominated by five global companies that share between them.
This is something that could change if the OFT investigation culminates in new rules and regulations to make the sector more competitive.
Heather Clayton, senior director of infrastructure at the organisation, said: "In the present climate, well-functioning markets are even more important to help spur economic growth.
"Aggregates is an important sector in its own right but it is also part of the larger construction industry which plays a key role in the country's economy."
Demand for large infrastructure projects is beginning to pick up following the recession and could indicate growing demand for aggregate and other materials derived from mineral extraction.
Typical Guttridge equipment used in the mineral extraction industry includes; conveyors – screw conveyors – chain conveyors – belt conveyors
