TIN ORE TRADING AND EXPORT: THE OPPORTUNITIES.

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Published: 18th January 2011
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The solid mineral industry in Nigeria has great potential based on the geological survey and proven reserve of different mineral that have been discovered in the country.





Tin Ore has been mined since colonial times and is one of the most versatile metals commonly used in industry. Tin ore (cassiterite or tinstone) is obtained mostly from the younger granites in the northern parts of the country and has been largely won from old stream channel deposits (placers) on the Jos Plateau and around younger granite masses in Bauchi, Kaduna, Kano and Benue States. Pegmatites in Cross River, Oyo, Niger, Kwara and Plateau States had also supplied tin in the past.





Though it is difficult to actually estimate the tin reserve in the country because most of the mining is still done by artisanal miners with no little or no interest in gathering data and conducting geological survey of mine deposit, an estimated 10,546 tones have been found in Plateau State. Tin ore are mainly used in plating, production of tin oxide used in paint, paper and ink industries, production of tin oxide resistors, electric lead wires.





Tin ore or Gusa {In Hausa} has both local and international market and investment opportunities exist in the buying and selling, mining and processing of the products. An investor can choose to buy and sell the product to processors or choose to own a mine or operate a processing plant that would add value to the product for a better price. The buying and selling requires less capital compared to owning a mine or operation a processing plant. Tin ore requires dressing in order to concentrate it and at such the capital requirement for establishing this business would depend on which market the investor wants to operate in.





In international trade the product is at the centre of the contract because that is what the buyer wants and they need it in certain Quality /Quantity which ultimately affects the price. For the purpose of this write-up, we would only concentrate of the percentage of the tin in the ore. It is important at these to state there are high and low grade tin ore. The high grade starts from 5% of tin content and above while the low grade starts from 1 to 5.





Pro- Rata are used to ensure that the miner/seller gets paid according to the percentage of tin in the ore ,that is, for every 1% Increase /Decrease in tin content, the price would Increase /Decrease by a certain price agreed by the parties involved.





TYPICAL ASSAY - QUALITY SPECIFICATION:


On dry basis Guaranteed (% by weight) Rejection


Tin ore (Sn) 5% up(including5%) 5% below


Cu ≤0.30% >0.30%


Sb ≤0.30% >0.30%


F ≤0.10% >0.10%


Bi ≤0.10% >0.10%


As ≤1.50% >1.50%


Pb ≤1.00% >1.00%


Radioactivity <200CPMby"inspection alert" >200CPM





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.





Should you require a market report/feasibility study, supply contract or sourcing of the product from miners in Nigeria, please do contact the writer.





Anaekwe Everistus Nnamdi is a Business Development Consultant by day and blogs on investment opportunities in Nigeria by Night. He is the administrator of www.nigeriabusinessplace.com ,a forum focused on business in Nigeria.





To contribute / promote your business and read about other investment opportunities from other writers and organizations, register on the forum.





Visit his inspiring and educative blogs at





www.farriconsultingng.blogspot.com


www.propertyforsaleinnigeria.blogspot.com








You can reach the writer on + 234 {0} 8033782777, +234 {0} 7082530855 or


enquiries@foramfera.com

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