Description
Zinc is the 24th most abundant element in the earth’s crust and is a metallic chemical element with symbol Zn and atomic number 30.
In the raw form, there are two grades of Zinc Ore, high and low. The low grade is usually from 10%- 40% and high grade from 50%-90%.
The major uses of zinc are anti – corrosion coating on steel {Galvanizing}, precision components {die casting}, construction materials, brass production, pharmaceuticals and cosmetics
Demand for lead and zinc was low during the late 2000s due to a global recession. According to the U.S. Geological Service, U.S. industrial minerals mine production declined by 18 percent in 2009 to $35.8 billion. However, American Metal Market announced shrinking lead and zinc surpluses in July 2010 as demand for surpluses increased, according to a report by the International Lead Zinc Study Group (ILZS).
In addition, in May 2010, lead mining production rose by 4.6 percent compared to the previous month, and refined lead production increased by 2.2 percent. Global demand for lead increased from January to May by 3.6 percent, indicating a recovery of a sagging economy. Over the first five months of 2010, zinc surpluses fell by nearly 20 percent.
Worldwide zinc production was up over the first five months of the year by 14 percent, compared to the same period of the previous year, and global demand for zinc was up by over four percent.
The market for zinc ore is both local and international with china as the largest importer of metal ore in the world. Because of the various applications of zinc ore, the demand would always surpass the supply.
The United States imports over 75 percent of its zinc demand. The U.S. supply of zinc comes primarily from Canada (55 percent) as well as Peru (15 percent) and Mexico (15 percent).
The prospect of global economy is promising, so the automotive market, which is closely related to the zinc ore market, is witnessing growth thereby creating more demands for the product.
It is estimated that Nigeria has over 10,000,000 tons of zinc ore deposit and it is an important component in car battery production. The prospect of global economy is promising, so the automotive industry which is closely related to the lead market, is witnessing growth thereby creating more demands for the product.
This report seeks to examine the financial viability or otherwise of mining zinc ore in Nigeria and export of same (zinc ore 40%).
The business entails using mechanized method of mining to produce five hundred (500) tons bi-monthly of zinc ore rocks of which minimum of three hundred (300) tons of zinc ore 40% will be extracted from the rocks after sorting.
