Copper Ore

Mining in Nigeria dates back to before 1900. Nigeria has in abundance many mineral deposits; one of such minerals is COPPER ORE. Copper is a chemical element with symbol Cu (from Latin: cuprum) and atomic number 29. It is a soft, malleable, and ductile metal with very high thermal and electrical conductivity. A freshly exposed surface of pure copper has a reddish-orange color. Copper is used as a conductor of heat and electricity, as a building material, and as a constituent of various metal alloys, such as sterling silver used in jewelry etc.

Copper usually occur as associate minerals in the body of the ore. Other minerals like lead and zinc usually form the main part of the body of the ore. Mineral is an inorganic substance found in nature with a characteristics chemical composition and in some cases, of definite crystal structure. The earth crust contains rocks of different composition with different physical properties, some hard while some are soft. Rocks are the materials which the earth’s upper crusts are made of. Rocks are themselves composed of minerals. Minerals are naturally occurring elements like Gold, or a compound such as Iron Oxide. If a rock contains a mineral from which a metal can be extracted at a profit, it is call an Ore. For example, copper Ore.

The occurrence and distribution of copper ore in Nigeria is mainly in the Northern Part of the country because of the peculiar geology of the area and they are been mined in Nassarawa, Plateau, Zamfara, Bauchi and Gombe State. Ores vary in quality from one location to the other due to difference in the geology of the area and other factor as at the time of formation; Ores have low and high grades. For copper ore, low grade ranges from 10%- 30% while high grade is usually from 30% above

 

EXPORT OF COPPER

Copper ore can be exported after sorting into size and packaging. Packaging is usually in 50 Kg since the price is quoted in Metric tons. 1000/KG makes 1 ton and this helps in easy containerization of the goods since most shipping company prefer to carry 20 tons in 20 feet container. In shipping mineral ores, 20 feet container is usually preferred because of the weight of the ores.

The sorting of the ore simply refers to the breaking down of the ore into the desired sizes as agreed with the buyer. Sizes usually range from 0-50-100 mm and care must be taken while this is being done because if the product is not broken to the desired size, it might lead to a reduction in price or rejection of goods.

In the export of the copper ore, some of the cost to consider includes cost of the ore at the site, cost of 2% PB, cost of transportation to site of crushing/loading {in case the mining site is not accessible to trucks}, cost of crushing, cost of packaging, cost of loading it to the truck, cost of transportation to Warehouse/port, cost of analysis, cost of freight, agent fee, and miscellaneous. All these cost will be worked out for any potential investor so that you can have a better view of the return on investment

REFINING

This facility do not exist in the Nigeria presently thus it presents a fantastic investment opportunity for a savvy investor to take advantage of, such investor will refine the copper ore and then sell copper concentrate to local and international buyers. This fetches more return on investment even though the investment is huge.

 

APPLICATIONS

The major applications of copper are electrical wire (60%), roofing and plumbing (20%), and industrial machinery (15%). Copper is used mostly as a pure metal, but when greater hardness is required, it is put into such alloys as brass and bronze (5% of total use). For more than two centuries, copper paint has been used on boat hulls to control the growth of plants and shellfish. A small part of the copper supply is used for nutritional supplements and fungicides in agriculture. Machining of copper is possible, although alloys are preferred for good machinability in creating intricate parts.

 

MARKET

Export of crude Copper ore is good business but refining to obtain pure Copper ready to be used is better although it requires enormous investment so also is the return on investment. Global copper consumption is steadily increasing, and currently stands at some 22.9 million metric tons 2017 report. Forecasts for global copper demand show the same trend. The leading refined Copper consuming countries were China, the United States, Japan and Germany. Demand for Nickel worldwide is expected to grow largely because of increased consumption in China, which is being driven by growth in the electrical wire demand and other related businesses

 

REQUIREMENT AND CONDITIONS FOR MINING LEAD IN NIGERIA

There are two options available to a company or an individual to enter into the mining industry in Nigeria.

1. Through the acquisition of an existing mining Lease from the original owner. Approval must be obtained from the Ministry of Solid Minerals Development for such a purchase.
2. Fresh mining lease

 

Procedure for Mineral Title Licences/Leases and Permits:

•  Duly completed application form
• Coordinates of the area of application
• Certificate of incorporation
• Attestation
• Letter of consent from landowner(s)/occupier(s)
• Types of minerals
• Work programme/pre-feasibility report
• Evidence of payment
• Technical capability
• Financial capability

In order to encourage investment in the solid minerals industry in Nigeria, Government is offering the following incentives

1. 3-5 years Tax Holiday
2. Deferred royalty payments
3. Possible capitalization of expenditure on exploration and surveys.
4. Extension of infrastructure such as roads and electricity to mining sites, and provision of 100% foreign ownership of mining concerns.

The mining industry in Nigeria is regulated by the Nigerian Minerals and Mining Act of 2007, National Minerals and Metals Policy 2008 and Nigerian Minerals and Mining Regulations 2011.

 

CONCLUSION

Business Advisory Network ‘BAN’ will work with you and assist you to process mining lease from the federal government. We will help you source for a site with rich mineral content. Mining is a technical field although the financial reward is enormous; therefore to succeed you need experts to guide you to avoid fatal mistakes that will erode your capital.

Other things BAN can do for you include but are not limited to helping you to determine the grade of Copper ore at the site, source market for your mined minerals, both locally and internationally. BAN will also help you arrange security at your mining sites. It will interest you to know that export of refined pure Copper is where you will make a kill. BAN will help you to set up a refinery for Copper ore in Nigeria. The capital outlay for this is huge but even so much more is the return on investment. If we have Copper concentrate in Nigeria it will be easy for a Nigeria company to provide derivable products like electric wire and others from Copper.