One of the most promising minerals for investment is zinc ore. Zinc is an essential industrial metal that is used in many industries, including as manufacturing, automotive, and construction. Given its substantial reserves and the increasing demand for zinc around the world, Nigeria offers investors in the zinc ore mining industry attractive prospects.
Nigeria has large resources of zinc ore, mostly in states like Niger, Zamfara, and Kaduna. Only a small portion of Nigeria’s projected 10 million metric tonnes of zinc reserves are being used, according to the Nigerian Geological Survey Agency. This offers a great chance for new players to enter and capitalise on a relatively unexplored market.
Expanding Worldwide Need
The market for zinc worldwide is anticipated to further expand, propelled by the rising need for galvanisation in the automotive and building sectors. According to Research and Markets reports, the size of the worldwide zinc market was estimated to be over $28 billion in 2021 and is projected to rise at a compound annual growth rate (CAGR) of about 5.1% to reach $37 billion by 2027. This development underlines the potential profitability of investing in zinc mining in Nigeria.
Environmental Regulation
The Nigerian government has implemented measures aimed at enhancing the regulatory framework for investments in mining. It is heartening that the Mining Roadmap, which seeks to improve transparency, streamline licensing procedures, and draw in international investment, is being implemented. Furthermore, the creation of the Mining Cadastre Office expedites the licensing process and assigns mineral titles, facilitating investor navigation of the
Obstacles and Things to Think About
Though the future seems bright, prospective investors should be mindful of obstacles like poor infrastructure, illicit mining operations, and security issues in some areas. A sizable portion of mineral extraction, according to the Nigeria Extractive Industries Transparency Initiative (NEITI), comes from unlawful mining operations, which presents hazards to respectable investors.
Zinc ore mining in Nigeria offers a profitable investment opportunity due to the country’s huge reserves and increasing worldwide demand. Nigeria has favourable regulatory reforms and growing interest in mineral exploration, which would position it to play a significant role in the global zinc market. Through effective management of obstacles and utilisation of the nation’s abundant resources, investors can set themselves up for success in this auspicious industry.
