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Coal, a black mineral that is found below the ground and burnt to produce heat, as been used for many years to power railways, power and manufacturing plants. Coal is not only used as fuel, they are also used in the industrial production of tar, gas and non edible oils.

Nigerian Coal is one of the most bituminous in the world owing to its low sulphur and ash content and therefore the most environmental friendly. There are nearly three billion {3,000,000,000} tonnes of indicated reserves in seventeen {17} identified coalfields and over six hundred million {600,000,000} tonnes of proven reserves in Nigeria and they can be found in mostly Enugu and Kogi states in Nigeria.

Given the large deposits of brown coal in the tertiary sediments east and west of River Niger; there are investment opportunity in the pelletisation and briquette of coal for the local and export market.

Coal pelletisation/briquetting refers to a process of compressing coal into pre-casted shapes and designs. This process not only enables the resulting product to burn longer but also makes it smokeless.

Coal briquette presents a great alternative to over 90% of Nigeria’s over one hundred and forty million {140,000,000} people that depends on kerosene for cooking and other domestic uses.

The supply and distribution of kerosene in Nigeria is faced with a lot of problem ranging from scarcity to non –availability, therefore the market for coal briquette in Nigeria is sustainable.

The export market for coal pellet/ briquette is also established and sustainable.

Packaging could be in 1, 5, 10, 15 Kg depending on the market requirement.

In order to encourage investment, government has put in place various incentives in the solid minerals industry like

• 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.

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At Foraminifera Market Research {}, we provide bespoke and up to date market research reports for start-ups and those already in business.

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 different detailed feasibility report on small scale coal mining in Nigeria from by clicking on the link below.

Report Code:FORA/05564-807/2015/COALMININGINNIGERIA/849999-0025

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