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Establishing a Salt Mining (Rock Salt), Refinery, Blending, Packaging and Sales Business in Nigeria; The Feasibility Report.

Establishing a Salt Mining (Rock Salt), Refinery, Blending, Packaging and Sales Business in Nigeria; The Feasibility Report.

8,500,000.00

Description

Salt — chemically sodium chloride (NaCl) — is one of humanity’s oldest and most indispensable minerals. Beyond seasoning and food preservation, refined salt is a feedstock for chemical industries, a water-treatment agent, an agricultural input and a raw material for an expanding array of industrial uses.

Market research places the global refined salt market in the realm of tens of billions of dollars. The refined salt market was valued at about USD 13.7 billion in 2023 and is projected to reach nearly USD 18.9 billion by 2032, representing a compound annual growth rate (CAGR) of approximately three point six percent (3.6%) by 2032 — a signal that demand across food, chemical processing and water-treatment applications remains steady.

Different broader salt market reports vary in their totals depending on whether they include road-deicing and rock salt uses, but refined salt — the processed, food-grade or industrial-grade NaCl sold in packaged and bulk form — is clearly a substantial and stable global business.

Refined salt products are normally grouped by end use and processing:

Table salt (consumer/culinary salt): finely milled, often fortified (iodized) and packaged for household use.
Iodized salt: table or food-grade salt fortified with iodine to prevent iodine-deficiency disorders; many countries mandate iodization.
Industrial salt: bulk salt for chemical manufacturing (chlor-alkali industry), soap and detergent production, oil & gas operations, and water treatment.
Other specialty salts: feed salt, de-icing salt, and niche culinary salts.

Globally, the industrial/chemical segment typically dominates usage by volume because huge quantities of salt feed chemical processes (e.g., chlorine and caustic soda production), while table/iodized salt accounts for a smaller share by volume but commands a disproportionate share of retail revenue because of packaging and branding.

Market research and industry overviews show that edible salts account for a modest share of total salt production by mass, while industrial/chemical applications take the lion’s share in many regions.

Refined salt finds application in multiple sectors:

Food and beverage: seasoning, preservation, ingredient in processed foods and baking.
Chemical industry: raw material for chlorine, caustic soda, soda ash derivatives and many downstream chemicals.
Water treatment: softening and desalination processes, conditioning in municipal and industrial water systems.
Agriculture & animal feed: mineral supplement and feed additive.
Other industrial uses: leather, textiles, oil & gas, and certain manufacturing operations.

Market studies repeatedly identify chemical processing and food industries as dominant demand centres for refined salt; water treatment and agriculture are steady but smaller-volume applications in many economies.

Salt making has a long West African pedigree. Pre-colonial trade routes circulated salt as an essential commodity, and various Nigerian regions historically produced salt from inland brines and coastal evaporation ponds.

Colonial and post-colonial periods saw fluctuating local production and reliance on imports — particularly as industrial demand grew and local production struggled to modernize. Over time Nigeria moved from localized, artisanal saltworks toward a mixed picture of small-scale evaporation, inland brine exploitation and pockets of more organized production, but national supply has often lagged behind a growing domestic demand profile.

Historical reviews note that salt production and distribution materially shaped trade and settlements across West Africa long before modern industrialization.

Ebonyi State (southeastern Nigeria) is among the country’s notable areas for inland salt resources. Traditional salt production centres in Ebonyi include Okposi and Uburu/Uburu Lake (both in Ohaozara and adjacent localities), where natural brine lakes and saline springs have been exploited for generations through evaporation and artisanal refining.

These inland salt lakes are part of what makes Ebonyi a strategic location for brine extraction and refined-salt production.

In recent years the Ebonyi state government has signaled interest in developing these resources commercially, and there have been reported initiatives and partnerships (including exploratory engagement with private and foreign partners) to scale extraction and processing. Field visits and local reporting — and even state promotional materials — identify Okposi and Uburu as primary salt localities.

Brine extraction at such sites typically involves collecting saline groundwater or surface brine and concentrating it through solar evaporation or vacuum evaporation to precipitate salt. Compared with rock-salt mining, brine extraction has lower upfront geotechnical requirements but still needs good water management, evaporation infrastructure (ponds or evaporators), and downstream refining to meet food-grade standards.

Nigeria is a high-demand market for refined and iodized salt. Recent market intelligence reports estimate national salt consumption on the order of around one million to one million, five hundred thousand (1,000,000 –1,500,000) tons per year, driven by population growth, extensive food processing activity and industrial demand.

Local production has historically been insufficient to meet total domestic demand, which has resulted in significant import activity to fill the gap. That gap presents both a domestic market opportunity for scaled-up local producers and an export prospect for competitively produced, certified salt from places such as Ebonyi.

Within Nigeria the retail market for iodized table salt is large and supported by public-health policy; the country has run universal salt iodization programs to tackle iodine deficiency disorders, creating steady institutional demand for fortified salt.

At the same time, food processors, chemical users and water-treatment providers create the bulk demand by volume, reinforcing the economic rationale for large-scale, bulk salt production and supply contracts.

A refined-salt business in Nigeria must comply with a range of regulatory frameworks that cut across mining, food safety, trade, and environmental oversight:

Federal Ministry of Mines and Steel Development (MMSD): As salt is categorized as a solid mineral under Nigerian law, the MMSD is the primary regulator for mining licenses, exploration permits, quarry leases, and mining operations.

Any company engaging in brine extraction or salt lake development in Ebonyi must secure the appropriate mining titles and comply with the Nigerian Minerals and Mining Act (2007).

NAFDAC (National Agency for Food and Drug Administration and Control): Responsible for regulating food-grade and iodized salt. It enforces fortification standards, packaging requirements, labeling rules, and safety protocols for consumer products.

SON (Standards Organisation of Nigeria): Sets national industrial and product standards (NIS), including the purity and iodine content of table salt, as well as technical specifications for industrial-grade salt.

Compliance with these bodies as well as international standards (Codex Alimentarius for food salt, ISO food safety systems, HACCP where relevant) is essential — particularly for export markets that demand certification.

Brine extraction and refined salt production in Ebonyi State is a classical resource-to-factory opportunity: the raw material exists, domestic demand is substantial and diverse, and global markets for refined salt remain steady.

The pathway to success is to combine responsible brine extraction, modern refining and iodization capacity, rigorous quality controls (NAFDAC/SON compliance), and commercial scale so that locally produced salt is both price-competitive and export-ready.

With smart investment, environmental safeguards and strong public-private collaboration, Ebonyi can move from artisanal salt making toward an industrialized refined-salt sector that strengthens local livelihoods and reduces Nigeria’s reliance on imported salt.

Table of Contents

EXECUTIVE SUMMARY

1.0 Business Overview

1.1 Description of the Business
1.2 Vision and Mission Statement
1.3 Business Objective
1.4 Value Proposition
1.5 Obtaining a Mining Permit in Nigeria and Associated fees
1.6 Occurrence and Distribution of Salt in Ebonyi State, Nigeria
1.7 Critical Success Factor of the Business
1.8 Current Status of Business
1.9 Description of the Business Industry
1.10 Contribution to Local and National Economy

2. Marketing Plan

2.1 Description of the Products
2.2 Product Packaging and Delivery
2.3 The Opportunity
2.4 Pricing Strategy
2.5 Target Market
2.6 Distribution and Delivery Strategy
2.7 Promotional Strategy
2.8 Competition

3. Technical Analysis

3.1 Description of the Location
3.2 Raw Materials
3.3 Production Equipment
3.4 Production Process
3.5 Mining, Production and Direct Cost
3.6 Stock Control Process
3.7 Pre-Operating Activities and Expenses
3.7.1 Operating Activities and Expenses
3.8 Project Implementation Schedule

4.0 Organizational and Management Plan

4.1 Ownership of the business
4.2 Profile of the Promoters
4.3 Management and Governance
4.3.2 Management Support Units
4.4 Details of Salary Schedule

5. Financial Plan

5.1 Financial Assumption
5.2 Start – Up Capital Estimation
5.3 Source of Capital
5.4 Profit and Loss Account
5.5 Cash Flow Analysis
5.6 Viability Analysis

6.0 Business Risks, Mitigation Factors and SWOT Analysis

6.1 Business Risks and Mitigation Factors
6.2 SWOT Analysis

Report Details

Report Type: Feasibility Report
Formats of Delivery: EXCEL / MS WORD
No. of Pages: Text – 62 Pages and Excel Spreadsheet – 6 Pages
Product Code: FORA/07/2025/ROCKSALTMININGANDREFINERY/4452552425
Publisher: Foraminifera Market Research
Release Date: 08/10/2025; Update Every 3- Months
Language: English
Delivery time: 24– 48hours

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