How To Start The Lucrative Export Of Iron Ore From Nigeria To International Buyers

The abundance of solid minerals and metals in Nigeria continues to make the nation one of the wealthiest in the world. Over 120 different minerals are beneath the country’s surface. And profitable as they may seem, one of the most globally demanded minerals which are in vast volumes in Nigeria is the rich presence of Iron Ore.

International buyers all over the world are always looking to purchase Iron Ore from Nigeria because of its quality, abundance, and price. They come into the country on a regular basis for meetings with commodity trading companies and miners to see how they can establish long-term relationships with them to guarantee a steady supply of the commodity every month for at least one year. Depending on what they agree, they decide which supplier or suppliers to go with, issue an ICPO (Irrevocable Corporate Purchase Order), sign a contract, and start transacting.

The explosive demand for this mineral or concentrates in Nigeria by international buyers makes venturing into the export of Iron Ore minerals or concentrates from Nigeria to several countries around the world a lucrative export business to start up.

See Also: How To Start The Lucrative Export Of Muscovite Mica Minerals From Nigeria To International Buyers

First, What Are Iron Ore Minerals Or Iron Concentrates?

Iron Ore minerals are rocks containing Iron, which is a chemical element with the symbol Fe and atomic number 26 that is not found as a free element in nature.

The Iron concentrate is the pure Iron extract from the rock (ore) itself.

So What Is Iron Ore Minerals Or Iron Concentrates Export About?

Iron Ore minerals or Iron concentrate export is the export of Iron from Nigeria to international buyers located in various parts of the world. It is exported in either the Iron Ore form or the Iron concentrate form, and are further processed upon arrival at the buyer’s facility into various forms of alloys or for other uses.

See Also: How To Start The Lucrative Export Of Lithium Ore From Nigeria To International Buyers: Lepidolite, Lepidolite, Amblygonite, & Spodumene

Facts About Iron Ore Minerals Or Iron Concentrates Export

• They’re found in the Northern and Southern parts of Nigeria.
• Iron Ore mining or processing can create a great source of employment.
• Iron is a chemical element with symbol Fe and atomic number 26.
• Iron ore vary in colour from dark grey to bright yellow, or deep purple to rusty red.
• Iron is the 4th most abundant metal on earth.
• The most common Iron Ores in Nigeria are Hematite (Fe₂O₃) and Magnetite (Fe₃O₄).
• Iron (usually in the form of steel) are used to build machines, vehicles and building structures.
• Iron in the human body has a number of important functions including carrying oxygen to the body in the form of haemoglobin.
• The Latin name for iron is Ferrum, which is the source of its atomic symbol, Fe.
• Iron is essential for all living things
• The average human body contains about 15 milligrams of Iron and takes in about 15 milligrams of Iron daily.
• The profit margins on the sale of Iron Ore or Iron Concentrates to international buyers can be anywhere from 15% to 110% depending on if you’re the miner or are purchasing from the mines.
• As a broker, you can venture into this business with $0.
• Nigeria is estimated to have over 3,000,000,000 tonnes of Iron Ore deposits, while its counterpart Lead ore is over 10,000,000 tonnes.
• China is the top importer of Iron Ore in the world.
• There are Iron ore deposits in Abia, Anambra, Bauchi, Benue, Kwara, Plateau, Kogi, Enugu, Niger, Zamfara, Kaduna, Nasarawa and a few other states in Nigeria.

See Also: How To Start The Lucrative Export Of Tin Ore From Nigeria To International Buyers

Business Opportunities In Iron Ore Minerals Or Iron Concentrates Export

1). Iron Ore Minerals Export:

The first layer of the mineral is the Iron Ore. These are usually sold at varying amounts at the mines depending on the percentage of Iron present in the ore and are then further resold to international buyers at varying prices per metric tonne depending on the specification, the seller’s connection to the mines, the trade process, and the final negotiations with the buyer.

In all, your profit margin from the export of Iron Ore from Nigeria can be anywhere from 15% to some rare cases of over 100%.

2). Iron Concentrates Export:

The Iron concentrates are the further processed forms of the Iron Ores into the pure Iron concentrates. Since the Iron Ore is a rock with Iron in it, the Iron concentrates are the extracted Iron itself, which is then prepared for export.

3). Iron Ingots Export:

Iron ingots are pure Iron that is cast into a shape suitable for further processing. It is also called Iron bars, which is very similar in shape to gold or lead bars. They’re highly preferred for purchase by international buyers because they can easily be cast into a shape or something else, thereby saving the buyer a lot of time and money.

They’re more expensive than Iron Ores or Iron concentrates.

4). Iron Ore, Concentrates, And Ingots Brokerage:

When you have zero cash to start up any type of business, the first thing you should do is to venture into the brokerage of that business’ products, and in this case, Iron Ore, Iron Concentrates, and Iron Ingots Brokerage.

You could venture into the Iron mineral brokerage business by linking a buyer to a seller, and in the process, add a markup price per metric tonne for your organisation, after getting the final selling price from the seller.

But to ensure you have a successful brokerage business, it is important you legally protect your commissions. Any seller who claims to give you something without a contract backing it is bullshitting you. If they get arrogant and tell you to wait to get it without a contract, simply walk away and find another seller.

98% of all sellers are not trustworthy without a contract in hand or a bank indemnity to pay you your commissions.

See Also: 25+ Lucrative Mining Business Ideas And Opportunities in Nigeria

Setting Up Your Iron Ore Minerals Or Iron Concentrates Export Business

1). Register Your Export Business:

The first step to starting a Iron Ore or Iron Concentrate export business is to register a legal business. To do this, you must first register a limited liability company with the Corporate Affairs Commission of Nigeria, then go on to register your business with the Nigerian Export Promotion Council and the Ministry of Solid Minerals.

Registered business names are not allowed to register with the NEPC, and so, you can only function as an exporter with a Limited Liability Company registered under the laws of the Federal Republic of Nigeria.

See Also: 10+ Legal Requirements For An Import And Export Business in Nigeria

2). Find The Direct Mines and Sources For Exports:

Although this can be done before, during, or after your company has been registered with the appropriate bodies, the next step is to source for the direct mines that would be mining the Iron Ore Minerals or Iron Concentrates for you on behalf of your clients.

It’s usually better you get direct access to the mine, so you can get the best possible price. Going through a proxy would waste more time, cost more money, and reduce your profit margins.

Some states with mining sites to find Iron Ore or Iron Concentrate mineral miners are Abia, Anambra, Bauchi, Benue, Kwara, Plateau, Kogi, Enugu, Niger, Zamfara, Kaduna, Nasarawa and a few other states in Nigeria.

3). Setup A Proper Business Structure, Trade Process, & Branding:

During or after registering and securing your buyers, it is important you set up a proper business structure that looks internationally reputable. Some ways to do this are to build an international standard website, get a business address, create a company profile, and also have a corporate offer format you can customize and send to buyers who request an offer. Also set up a corporate email that reads something like this: “[email protected]”.

If renting an office is too expensive, you could pay for a virtual office at a co-working hub and use their address for meetings.

When you organise your company this way, buyers would feel really confident about doing business with you and would tend to choose your business as their preferred partner.

4). Source For Buyers:

The next thing is to source for international buyers for your products. You can do this by registering on websites like:

• www.exportersindia.com
• www.alibaba.com
• www.linkedin.com

And several others.

You can also build an influential social account on LinkedIn and market your Iron Ore Minerals to a unique business audience you’d build over time.

See Also: How To Find International Buyers For Your Import/Export Business

5). Export Your Products:

Upon sealing agreements with the buyers, getting issued an Irrevocable Corporate Purchase Order, signing a Sales and Purchasing agreement, and more, you can then proceed to ship the Iron Ore Minerals or Iron Concentrates to the buyer.

The shipment could be done on either Free On Board (FOB) or Cost, Insurance and Freight (CIF) basis. Where FOB means you cover the cost of the goods and every other thing till its arrival at the shipping point, and CIF means that you cover the cost of everything including insurance and transporting the goods to the buyer’s port of destination.

See Also: How To Start Exporting Manganese Ore/Concentrates From Nigeria To International Buyers

Challenges Of The Iron Ore Minerals Or Iron Concentrates Export Business

1). Lack of experience causes exporters to either purchase the wrong specifications, underprice or overprice their products, and much more.

2). Your mined Iron Ore minerals or Iron Concentrates en route a warehouse may get robbed or seized by government officials before arrival.

3). Fake buyers wasting exporters time with fake inquiries.

4). Most prospective entrepreneurs have little to no access to finance for their projects.

5). Most Iron Ore or Iron Concentrate sellers have poorly managed supply chains and may sometimes be unable to deliver.

6). Your time could be wasted as a result of long-term conversations with Iron Ore Minerals or Iron Concentrate buyers who have no real money to pay.

7). The large pool of fraudsters posing as Iron Ore Minerals or Iron Concentrate sellers makes it difficult for Iron Ore Minerals or Iron Concentrate buyers to trust you.

See Also: How To Start The Lucrative Export Of Tantalite From Nigeria To International Buyers

Conclusion

The Iron Ore or Iron Concentrate Mineral export business is a lucrative one for anyone who chooses to venture into the export of solid minerals from Nigeria. Depending on the quantity the buyer needs, your profit margins could be far higher or lower, but still substantial.

Starting a solid mineral export business in Nigeria with an initial focus on Iron Ore Minerals or Iron Concentrates is a way to not just only get into the industry, but a great start to building a long-term business that could someday employ thousands of people directly and indirectly.

An Important Point

Trying to buy Iron Ore Minerals or Iron Concentrates from Nigeria through genuine sellers can lead to a lot of wasted time and efforts on the part of the Iron Ore or Iron Concentrate Minerals buyers. They spend a lot of time vetting sellers in Nigeria, doubting their results even if positive, and going back and forth too many times than they can count, only to end up either cancelling their decision to buy or making a purchase after months or years have passed.

Finding real Iron Ore or Iron Concentrate Mineral sellers in Nigeria can be a problem. To make this possible for Iron Ore or Iron Concentrate Mineral buyers, Startup Tips Daily Media, through her sister company, Globexia, can export Iron Ore or Iron Concentrate Minerals to genuine buyers from Nigeria or anywhere in the world.

Whatever will help buyers close genuine Iron Ore Minerals or Iron Concentrate export-based transactions fast, transparently, and easier, we can make the process as stress-free as possible.

Our Iron Ore or Iron Concentrate Mineral export business is completely transparent, and as a result, we will not deal with a buyer who intends to cut corners or outsmart any party in the course of the transaction.

If you’re a genuine Iron Ore or Iron Concentrate Mineral buyer, you can reach out to us through the contact form below. If you’d like us also to help you export most of your Iron Ore Minerals or Iron Concentrates, we’d be glad to do so with mutually agreed terms.

In addition to our Iron Ore or Iron Concentrate Mineral export business in Nigeria, we’re also Mica Mineral sellers in Nigeria, and can export Mica minerals to buyers around the world.

If you’re only a scam, don’t waste your time, as the conversation wouldn’t last too long after a few questions and demands to prove your authenticity have been made from our end.

Our Iron Ore or Iron Concentrate Mineral Trade Specifications are listed below:

Origin: Nigeria

Mineral Type: Iron Ore / Iron Concentrates

Physical Specification: Based On Buyer’s Specification

Quantity: Based On Buyer’s Specification

Price: Negotiable / Metric Tonne

Trade Process: Ex Works/FOB/CIF

Payment Method: 100% irrevocable SBLC or L/C at sight from a top 25 prime bank

Shipping Time: 15 days after confirmation of L/C

Loading Port: Lagos, Nigeria

We look forward to hearing from you.

Thank you.

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What are your thoughts on this article on how to start the export of Iron Ore Minerals, Iron Concentrate Minerals, Hematite, and Magnetite from Nigeria? Let me know by leaving a comment below.