Nigeria is blessed with abundant mineral resources and most of these remain untapped. The country is so blessed with solid minerals and in large quantities too. Due to presence of oil in the country as well the government has not devoted enough time to the solid mineral sector although it has started by declaring its intension to support investors in this sector. This it has done by streamlining the process of acquisition of mining title and setting aside solid mineral support fund for investors in the sector. One of such mineral that Nigeria has in abundance is Iron ore
Iron (Fe) is one of the most abundant rock-forming elements, constituting about 5% of the Earth’s crust. It is the fourth most abundant element after oxygen, silicon and aluminium and, after aluminium, the most abundant and widely distributed metal. Iron ores are rocks from which metallic iron can be economically extracted. These rocks are usually found in the form of hematite (Fe2O3) or magnetite (Fe3O4). About 98% of world iron ore production is used to make iron in the form of steel. Although iron in cast form has many specific uses (e.g. pipes, fittings, engine blocks), its main use is to make steel.
Steel is the most useful metal known being used 20 times more than all other metals put together. Steel is strong, durable and extremely versatile. The many different kinds of steel consist almost entirely of iron with the addition of small amounts of carbon (usually less than 1%) and of other metals to form different alloys (e.g. stainless steel). Pure iron is quite soft, but adding a small amount of carbon makes it significantly harder and stronger. Most of the additional elements in steel are added deliberately in the steelmaking process (e.g. chromium, manganese, nickel, molybdenum). By changing the proportions of these additional elements, it is possible to make steel suitable for a great variety of uses. In Nigeria there are over 3billion tons of iron ore found in various states like Kogi, Enugu, Niger, Zamfara, and Kaduna States.
PRODUCTION AND CONSUMPTION
Iron is the world’s most commonly used metal – steel, of which iron ore is the key ingredient, representing almost 95% of all metal used per year. It is used primarily in structural engineering applications and in maritime purposes, automobiles, and general industrial applications (machinery).
Iron-rich rocks are common worldwide, but ore-grade commercial mining operations are dominated by the countries listed in the table aside. The major constraint to economics for iron ore deposits is not necessarily the grade or size of the deposits; because it is not particularly hard to geologically prove enough tonnage of the rocks exist. The main constraint is the position of the iron ore relative to market, the cost of rail infrastructure to get it to market and the energy cost required to do so. Beneficiation plant has to be close to the source of the iron ore this way cost will be reduced.
BENEFICIATION
Lower-grade sources of iron ore generally require beneficiation, using techniques like crushing, milling, gravity or heavy media separation, screening, and silica froth flotation to improve the concentration of the ore and remove impurities. The results, high quality fine ore powders, are known as fines
SMELTING
Iron ores consist of oxygen and iron atoms bonded together into molecules. To convert it to metallic iron it must be smelted or sent through a direct reduction process to remove the oxygen. Oxygen-iron bonds are strong, and to remove the iron from the oxygen, a stronger elemental bond must be presented to attach to the oxygen. Carbon is used because the strength of a carbon-oxygen bond is greater than that of the iron-oxygen bond, at high temperatures. Thus, the iron ore must be powdered and mixed with coke, to be burnt in the smelting process.
Trace elements
The inclusion of even small amounts of some elements can have profound effects on the behavioral characteristics of a batch of iron or the operation of a smelter. These effects can be both good and bad, some catastrophically bad. Some chemicals are deliberately added such as flux which makes a blast furnace more efficient. Others are added because they make the iron more fluid, harder, or give it some other desirable quality. The choice of ore, fuel, and flux determine how the slag behaves and the operational characteristics of the iron produced. Ideally iron ore contains only iron and oxygen. In reality this is rarely the case. Typically, iron ore contains a host of elements which are often unwanted in modern steel.
Silicon
Silica (SiO2) is almost always present in iron ore. Most of it is slagged off during the smelting process. At temperatures above 1300 °C some will be reduced and form an alloy with the iron. The hotter the furnace, the more silicon will be present in the iron. It is not uncommon to find up to 1.5% Si in European cast iron from the 16th to 18th centuries.The major effect of silicon is to promote the formation of grey iron. Grey iron is less brittle and easier to finish than white iron. It is preferred for casting purposes for this reason
Phosphorus
Phosphorus (P) has four major effects on iron: increased hardness and strength, lowers solid temperature, increased fluidity, and cold shortness. Depending on the use intended for the iron, these effects are either good or bad. Bog ore often has high phosphorus content. The strength and hardness of iron increases with the concentration of phosphorus. 0.05% phosphorus in wrought iron makes it as hard as medium carbon steel. High phosphorus iron can also be hardened by cold hammering. The hardening effect is true for any concentration of phosphorus. The more phosphorus, the harder the iron becomes and the more it can be hardened by hammering. Modern steel makers can increase hardness by as much as 30%, without sacrificing shock resistance by maintaining phosphorus levels between 0.07 and 0.12%. It also increases the depth of hardening due to quenching, but at the same time also decreases the solubility of carbon in iron at high temperatures. This would decrease its usefulness in making blister steel (cementation), where the speed and amount of carbon absorption is the overriding consideration.
The addition of phosphorus has a down side. At concentrations higher than 0.2% iron becomes increasingly cold short, or brittle at low temperatures. Cold short is especially important for bar iron. Although bar iron is usually worked hot, its uses often require it to be tough, bendable, and resistant to shock at room temperature. A nail that shattered when hit with a hammer or a carriage wheel that broke when it hit a rock would not sell well. High enough concentrations of phosphorus render any iron unusable). The effects of cold shortness are magnified by temperature. Thus, a piece of iron that is perfectly serviceable in summer might become extremely brittle in winter. Careful control of phosphorus can be of great benefit in casting operations. Phosphorus depresses the liquid temperature, allowing the iron to remain molten for longer and increases fluidity. The additions of 1% of phosphorous can double the distance molten iron will flow. The maximum effect, about 500 °C, is achieved at a concentration of 10.2%.
There are two remedies for high phosphorus iron. The oldest, and easiest, is avoidance. If the iron that the ore produced was cold short, one would search for a new source of iron ore. The second method involves oxidizing the phosphorus during the fining process by adding iron oxide. Phosphorus is a deleterious contaminant because it makes steel brittle, even at concentrations of as little as 0.6%. Phosphorus cannot be easily removed by fluxing or smelting, and so iron ores must generally be low in phosphorus to begin with.
Aluminum
Small amounts of aluminum (Al) are present in many ores including iron ore, sand and some limestones. The former can be removed by washing the ore prior to smelting. Until the introduction of brick lined furnaces, the amount of aluminum contamination was small enough that it did not have an effect on either the iron or slag. However, when brick began to be used for hearths and the interior of blast furnaces, the amount of aluminum contamination increased dramatically. This was due to the erosion of the furnace lining by the liquid slag.
Sulfur
Sulfur (S) is a frequent contaminant in coal. It is also present in small quantities in many ores, but can be removed by calcining. Sulfur dissolves readily in both liquid and solid iron at the temperatures present in iron smelting. The effects of even small amounts of sulfur are immediate and serious. They were one of the first worked out by iron makers. Sulfur causes iron to be red or hot short. Hot short iron is brittle when hot.
Sulfur can be removed from ores by roasting and washing. Roasting oxidizes sulfur to form sulfur dioxide which either escapes into the atmosphere or can be washed out. In warm climates it is possible to leave pyritic ore out in the rain. The combined action of rain, bacteria, and heat oxidize the sulfides to sulfuric acid and sulfates, which are water-soluble and leached out
The importance attached to low sulfur iron is demonstrated by the consistently higher prices paid for the iron of Sweden, Russia, and Spain from the 16th to 18th centuries. Today sulfur is no longer a problem. The modern remedy is the addition of manganese. But, the operator must know how much sulfur is in the iron because at least five times as much manganese must be added to neutralize it.
EXPORT OF COPPER
Iron 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 Iron ore, some of the cost to consider includes cost of the ore at the site, 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.
MARKET
Export of crude Iron ore is good business but refining to obtain pure Iron ready to be used is better although it requires enormous investment so also is the return on investment. Global Iron consumption is steadily increasing, and currently stands at a total of 2,106 million metric tons 2017 report. Forecasts for global Iron demand show the same trend. The leading refined Iron consuming countries are China, the United States, Japan and Germany. Demand for Iron worldwide is expected to grow largely because of increased consumption in China, which is being driven by growth in the automobile and other related businesses
REQUIREMENT AND CONDITIONS FOR MINING IN NIGERIA
There are two options available to a company or an individual to enter into the mining industry in Nigeria.
- 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.
- 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
- 3-5 years Tax Holiday
- Deferred royalty payments
- Possible capitalization of expenditure on exploration and surveys
- 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 Iron 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.