Thursday, December 31, 2009


From June, 2013 Foraminifera Market Research would start publishing our E- magazine. The magazine would focus on investment and business opportunity in Nigeria. Be the first to get hot investment and business opportunities in Nigeria by subscribing to our E- Magazine, Investing in Nigeria.


Annual subscription x 12 issues

Never miss another issue of Investing in Nigeria magazine. Get an Annual Subscription and get Investing in Nigeria magazine delivered direct to your E- Mail Address every month!

You would also have 12 months access to over 50 market intelligence reports on our website.
N5, 000 for 12 issues
Euro 25 for 12 issues
$32 for 12 issues

Subscribe Now!

For more on our subscription and membership package, please do visit


For the benefit of those who need to know, an attempt would be made to define mineral and metal 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 are hard, 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, lead ore.


Depending on the mineral that can be found in the rock, the ore can be subjected to various uses. This is due to the fact that the rocks are of different composition hence different physical properties. Lead is a major constituent of Lead- Acid battery. Lead is used as a colouring element in ceramic glazes, notably in the colors red and yellow. Lead is used as projectiles for firearms and fishing sinkers because of its density. Low cost compared to alternative products and ease of use due to relatively low melting point. Lead is also used in high voltage power cables as sheathing material to prevent water diffusion into insulation.

The Market:

The market for lead ore especially the overseas market in China is large, expanding and sustainable because of the numerous uses of ore. Buyers usually would like to secure steady source of supply of these products. An exporter that is able to secure a contract at the right price would have an uphill task meeting the demand of the buyer because the output from the mines in Nigeria is low due to the use of crude implement.

You can imagine a situation whereby the daily need of the factory of the buyer is 600/MT and the exporter would struggle to supply 500/MT on a monthly basis.

A detailed analysis of the cost and profit for the export of lead ore 50% is given below.

For Lead Ore 50%: International Market

Cost of 1 ton of Lead Ore 50% at site = N40, 000/MT

Cost of 60 tons = N2, 400,000

Cost of 2% PB =N108,000 {When price is $600 and Quantity 60 tons}

Cost of transportation to site of Crushing/loading = N10,000/3 tons

Cost of 60 tons =N200,000{ Please do know that this cost can be eliminated if the site is accessible}

Cost of Crushing @ N40/Bag = N48, 000 {Since 1 ton = 20 bags of 50 KG each}

Cost of packaging = N5000

Cost loading to the truck @ N20/ Bag = N24, 000

Cost of transportation to Warehouse/Port = N180, 000/30 tons=N360, 000/60 tons

Cost of Testing =N100, 000

Cost of Freight = N78, 000/20 FT Container {since 20 tons= one 20 FT container, N78, 000 * 3 = N234, 000

Warehousing = N100, 000

Deposition Fee = N150, 000 {Returnable after shipment of goods}

Agent Fee = N80, 000

Miscellaneous = N100, 000

Total = N3, 909,000

It is important that the exporter confirms the prices given above before going into the business because the prices of lead ore and the other services mentioned are not stable.

With a good arrangement with the forwarding agent, the exporter can eliminate the cost of warehousing and deposition fee by choosing another shipping company with good freight cost.

The miscellaneous expenses cannot be more than N70, 000 but just to be a safe side, let put it at N100, 000.

As previously stated, the price of lead ore is usually a function of the lead content in the ore and also the LME price.

For this analysis, we would assume that the lead content is 50% and exporter was able to sign a contract at the price of $600/MT and Pro Rata at $13.7/1%.Given that we are dealing with 60 tons, below are the calculations

60 * $600/MT = $36,000

@ $1= N150

$36,000 = N 5,400,000

Profit = N 5,400,000 - N3, 909,000

= N 1,491,000

This is the basic profit the exporter would make as profit without returning of the cost of 2% PB and Deposition Fee.

Knowing that the Lead content is not stable and say the actual lead content is 56% and Pro-Rata at $13.7/1%, the calculation would now be:

{56-50}% = 6%

6% *$13.7= $82.2

$600 + $82.2

= $682.2 * 60 tons = $ 40,932

@ $1=N150

= N6, 139,800

Profit = N6, 139,800 - N3, 909,000

= N2, 230,800

For Lead Ore 50% (Local Market): In the local market, delivery is usually done on Ex-warehouse basis .That is, the cost of talking the goods to the warehouse of the buyer.

The distance of the warehouse from the mine usually affects the price. Delivery can also be at site .This is a situation where the buyer is buying at the mining site of the exporter/miner. Ex-warehouse price are usually in Naira and and if the destination to be delivered to is Lagos. The price ranges from N65,000/MT - N80,000/MT depending on the negotiating skills of the seller and on the lead content.

If the seller was able to get an LPO for lead ore 50%, N65, 000/MT and Pro-Rata at N1000/1%,

Below would be the calculation

Cost of 1 ton of Lead Ore 50% at site = N40, 000/MT

Cost of 60 tons = N2, 400,000

Cost of transportation to site of Crushing/loading = N10, 000/3 tons

Cost of 60 tons =N200, 000{Please do know that this cost can be eliminated if the site is accessible}

Cost of Crushing @ N40/Bag = N48, 000 {since 1 ton = 20 bags of 50 KG each}

Cost of packaging = N5000

Cost loading to the truck @ N20/ Bag = N24, 000

Cost of transportation to Warehouse/Port = N180, 000/30 tons=N360, 000/60 tons

Miscellaneous = N100, 000

Total = N2, 677,000

Price of goods to Lagos =N65, 000 /ton= N65,000 * 60 tons = N3,900,000

Profit = N3, 900,000- N2, 677,000

= N 1,223,000

If the actual lead content is 56% and Pro-Rata at N1000/1% {56-50}%

6% * 1000 = N6000
N65, 000 + N6000
= N71, 000
N71, 000 * 60 tons = N4, 260,000
Profit = N4, 260,000 - N2, 677,000
= N1, 583,000.

The investor can choose to export the product to China or Europe where the product would be refined to get lead ingot amongst other product and sold at a higher price.

The policy of the Federal Government of Nigeria to make solid mineral sector one of the major contributors to the GDP of the nation from the present position of less than 1% is a positive sign.

Quality is the key word for the success or failure of this business .The investor must contract the services of experience firms to handle the sourcing of the product from the miners.

For a detailed Feasibility study report, which contains the contact details of buyers and sellers, profit and cost analysis for zinc and copper ore, other investment opportunities in the solid minerals like operating a mine and processing of solid minerals, managing export operations, please do contact me for further details.

*Please note that as at the time of writing this article the local currency exchange rate is about N148/$1.

To continue reading this article and other investment opportunities in Nigeria, please do click on the link below


Do you know you can access to over 50 market intelligence reports and our monthly E- Magazine for 12 months for just N 5,000?

Click on the link below to know more about this offer.

Can you supply lead ore from Nigeria and you are seeking for export contract? Then use our business process outsourcing service. Contact us with the details given below with the subject line as LEAD ORE EXPORT IN NIGERIA: LEAD ORE EXPORT CONTRACT.

At Foraminifera Market Research {}, we provide bespoke and up to date market research reports for beginners and exporters already in the commodity export market.

Our reports are designed to assist start-ups to understand the legal and financial requirements of starting the business, the market trends vis-a-vis demand and supply, competition, risk identification and mitigation strategies. 

You can order our detailed feasibility report on the export of lead ore in Nigeria by clicking on the link below.

Report Code: FORA/08/2011/037

Do you require one- on- one training on the subject matter? Contact us with any of the details provided below to arrange a meeting

Office Phone Number: 01- 295 24 13 {Monday – Saturday; 8 am – 5 pm}
Mobile Number: +234 {0} 8033782777 {Monday – Saturday; 8 am – 6 pm}

E-Mail Address:

Office Address: 

61-65 Egbe- Isolo Road,
Iyana Ejigbo Shopping Arcade,
Block C, Suit 39,
Iyana Ejigbo Bus Stop,
Ejigbo, Lagos.

Like and Follow us on 


Our human development training programmes are designed to assist our client set-up their respective business on a sound footing. 

The training cuts across different segment of the economy to include Agriculture, Export and Import, Food and Beverage, Manufacturing, Mining and Quarry, Oil and Gas, Retail Industry, Telecommunication, Tourism and Transportation and are facilitated by seasoned professionals in their respective fields.

Please do visit the link below to access available training programmes
Foraminifera Market Research is a dynamic market intelligence company providing comprehensive market research solutions and strategic intelligence services to start-ups and existing businesses in Nigeria.

We prepare business plan, feasibility study and market report for the small and medium scale industries and develop the entrepreneurial capacity of our client with the aim of providing the much needed business data in Nigeria.

In keeping with our vision of providing services that adds value to our clients business and resources to develop their business into a strong and visible global brand, we would like to introduce to you to our sister websites { The one stop for the oil and gas industry in Nigeria} { Marketing and Sales of Market Intelligence Report} {Online Business Forum}