Lam Tei Quarry is located on the north side of the hill between Lam Tei Irrigation Reservoir and Hung Shui Hang Irrigation Reservoir, covering an area of 30 hectares.

27.1 million tonnes of aggregate were quarried from 1982 to 2007. A new rehabilitation contract was signed in October 2006, in which another 6.5 million tonnes aggregate would be mined. Lam Tei Quarry is now the only operating quarry in Hong Kong.