Stove thread needs no introduction because over 100,000,000 families and 50,000,000 restaurants/caterers cook their daily meals with kerosene stove which uses thread as a conductor.
However, what seems to be little known is the huge profit derivable from the production of stove thread. Stove thread is made from the combination of cotton and polyester yarns in different texture and thickness all sourced locally.
The machine used in the production of stove thread is also sourced locally and come in two capacities. The first machine goes for N70,000 and produces between 100-200 dozens of thread in 24 hours while the second machine goes for N90,000 and produces 200 plus dozens of thread in 24 hours.
The machine can be ruined by one person, requires little space and does not require generator or power supply to operate.
The profit derivable from the business depends on the capacity of the machine in use and the length of the thread produced.
Below is the cost and profit analysis of the different length
Smallest length {a dozen} Production cost =N15,selling price =N35
Medium length {a dozen} production cost =N20,selling price =N50
Longest length {a dozen} production cost = N30,selling price = N70
There also exist opportunities for the production of customized stove thread for restaurants /caterers that uses special stoves.
The demand for stove thread in Nigeria always surpasses the supply because less number of people know about the huge profit to be made from the business .The product is also in hot demand in Chad, Nigeria republic and other west African countries. The market is further deepened by the fact that it can be used to reduce global warming by reducing deforestation.
This business is suitable for graduates, retirees, house wives, stove thread retailers and everybody looking for alternative source of income.
It is important to both government and private institutions that are into poverty reduction schemes.Micro-finace banks can also benefit from this seminar by training and establishing the business for there customers/clients. Churches and Non-government organization {NGO} would also benefit.
We undertake special one –day intensive training covering both the theoretical and practical aspect of the business for institution/organization like Microfinance banks, NGO’S, Churches etc.The minimum number of participant is 30 and the seminar fee is N7500 per participant.
We can offer discount if more participants are registered .For training outside Lagos, the clients would have to take care of the venue, accommodation, transportation and welfare.
The seminar would cover the following areas
1. Introduction to the business of stove thread production.
2.Investment opportunity in the buying and selling of yarns
3.Market analysis of stove thread in Nigeria and the West African countries
4.Raw materials sourcing and price
5.Practical session.
Some of the advantages of establishing the business is
1. Low start-up cost
2. Requires no generator
3. Less labour requirement
4. Less space requirement
5. The product has a ready market
6. Local availability of raw material and plant
We can also provide the details of the plant fabricator for willing and ready clients.
To take advantage is these highly guided secret and what has the potential of being the big thing next year, please do contact the writer as soon as possible.
Anaekwe Everistus Nnamdi is a Business Development Consultant by day and blogs on investment opportunities in Nigeria by Night. He is the administrator of www.nigeriabusinessplace.com, a forum focused on business in Nigeria.
To contribute / promote your business and read about other investment opportunities from other writers and organizations, register on the forum.
Visit his inspiring and educative blogs at
www.foramfera.com {a business development consulting firm},
www.farriconsultingng.blogspot.com {for investment opportunity in Nigeria}
www.marketreportportal.com {online business solution bookstore}
www.propertyforsaleinnigeria.blogspot.com {for sales of property}
Thursday, March 25, 2010
Wednesday, September 30, 2009
PALM KERNEL NUTS CRACKING BUSINESS
In my last write-up on palm kernel nuts, we looked at it from the buying and selling angle but these time, I am going to look at it from the production side, that’s is, buying and producing palm kernel {unshelled} into palm kernel nut by the use of a cracking machine. It is important at this point to note that in the production of palm kernel nuts, we have the hand and machine cracked. The hand cracked palm kernel nuts are those gotten by the use of hand while the machine cracked is that gotten from the use of machine in the cracking process.
Though buyers usually prefer the hand cracked because the FFA {Free Fatty Acid} content is usually low due to less breakage of the nuts but can not depend only on it due to less output. Machine cracked with the advantage of more output gives high FFA content which can be controlled by reducing the breakage of nuts. The machine in question has an efficiency of 90%,that is ,if 100 KG of palm kernel{unshelled} is feed into the machine,90% of the palm kernel nut would not be broken.
TECHNICAL ANALYSIS OF THE PROJECT:
The machine available for the production of palm kernel nuts is in two types, the ones that can crack and separate the nuts from the shell and the other that does not separate the nuts from the cracked shell .
The machine can be sourced from abroad or locally but the one in question is sourced locally and use a diesel powered engine to address the problem of electricity. The plant has a capacity of one {1} ton per hour and an efficiency of 90%. The plant would occupy a land area of about 15 * 10 feets but for production convenience, storage of raw material and finished products, the project should be accommodated in a land area of about 200 * 100 feets,that is ,two {2} plots of land. The raw material required to run the plant is palm kernel {unshelled} and labour required is between 2-4 persons.
MARKET ANALYSIS OF THE PROJECT:
Like was stated in my previous write-up, the market for palm kernel nuts is large, expanding and sustainable due to the products derivable from the product.
The investor might find it difficult to meet the needs of one buyer but would need different buyers in order to compare prices and increase competition amongst the buyers. The unshelled palm kernel can be sourced from the mainly the rainforest zone states of Nigeria to include Oyo,Anambra,Enugu,Abia,Imo,Ekiti,Osun,Cross River,Akwa Ibom etc.
FINANCIAL ANALYSIS OF THE PROJECT:
For the automatic plant that separates the nuts from the cracked shell the price is about N950, 000 while the other that does not separate the nuts from the shell is about N300, 000.
A small scale investor can invest in the plant that does not separates the nuts from the shell and make money going by the fact the two machines have the same capacity.
Since the efficiency of the machine is 90%, below would be the cost and profit analysis of operating a ton.
Cost of one {1} ton of palm kernel {unshelled} = N30, 000
Transportation to crushing site = N1000
Cost of packaging = N1300
Cost of labour =N1000
Cost of fuel = N1000
Miscellaneous =N2000
Total = N36, 300
If the investor was able to secure the supply at N60, 000, below is the profit
Since 1 ton = 1000 KG and the machine has an efficiency of 90% then
90% efficiency = 900 KG
Profit = 0.9 * 60,000
= N54, 000
Profit = N54, 000 – N36, 000
= N17, 700
Get the detailed business plan on the subject matter, by searching for the report on our sister website/company at www.marketreportportal.com
Report Title: CRACKING AND PROCESSING OF PALM KERNEL NUTS
IN NIGERIA
Product Code: FOR A/08/2011/09
We do accept payment by credit card and the report immediately downloaded to your desktop after payment.
You can send us a mail with the report title and product code for payment through bank wire and liberty reserve.
Though buyers usually prefer the hand cracked because the FFA {Free Fatty Acid} content is usually low due to less breakage of the nuts but can not depend only on it due to less output. Machine cracked with the advantage of more output gives high FFA content which can be controlled by reducing the breakage of nuts. The machine in question has an efficiency of 90%,that is ,if 100 KG of palm kernel{unshelled} is feed into the machine,90% of the palm kernel nut would not be broken.
TECHNICAL ANALYSIS OF THE PROJECT:
The machine available for the production of palm kernel nuts is in two types, the ones that can crack and separate the nuts from the shell and the other that does not separate the nuts from the cracked shell .
The machine can be sourced from abroad or locally but the one in question is sourced locally and use a diesel powered engine to address the problem of electricity. The plant has a capacity of one {1} ton per hour and an efficiency of 90%. The plant would occupy a land area of about 15 * 10 feets but for production convenience, storage of raw material and finished products, the project should be accommodated in a land area of about 200 * 100 feets,that is ,two {2} plots of land. The raw material required to run the plant is palm kernel {unshelled} and labour required is between 2-4 persons.
MARKET ANALYSIS OF THE PROJECT:
Like was stated in my previous write-up, the market for palm kernel nuts is large, expanding and sustainable due to the products derivable from the product.
The investor might find it difficult to meet the needs of one buyer but would need different buyers in order to compare prices and increase competition amongst the buyers. The unshelled palm kernel can be sourced from the mainly the rainforest zone states of Nigeria to include Oyo,Anambra,Enugu,Abia,Imo,Ekiti,Osun,Cross River,Akwa Ibom etc.
FINANCIAL ANALYSIS OF THE PROJECT:
For the automatic plant that separates the nuts from the cracked shell the price is about N950, 000 while the other that does not separate the nuts from the shell is about N300, 000.
A small scale investor can invest in the plant that does not separates the nuts from the shell and make money going by the fact the two machines have the same capacity.
Since the efficiency of the machine is 90%, below would be the cost and profit analysis of operating a ton.
Cost of one {1} ton of palm kernel {unshelled} = N30, 000
Transportation to crushing site = N1000
Cost of packaging = N1300
Cost of labour =N1000
Cost of fuel = N1000
Miscellaneous =N2000
Total = N36, 300
If the investor was able to secure the supply at N60, 000, below is the profit
Since 1 ton = 1000 KG and the machine has an efficiency of 90% then
90% efficiency = 900 KG
Profit = 0.9 * 60,000
= N54, 000
Profit = N54, 000 – N36, 000
= N17, 700
Get the detailed business plan on the subject matter, by searching for the report on our sister website/company at www.marketreportportal.com
Report Title: CRACKING AND PROCESSING OF PALM KERNEL NUTS
IN NIGERIA
Product Code: FOR A/08/2011/09
We do accept payment by credit card and the report immediately downloaded to your desktop after payment.
You can send us a mail with the report title and product code for payment through bank wire and liberty reserve.
MAKE MONEY IN BUYING AND SELLING OF PALM KERNEL NUTS
The Oil Palm tree is one of the greatest economic assets a state or nation has, provided its importance is realized and potentials fully harnessed. Oil Palm products include Palm Oil, Palm Kernel Oil and Palm Kernel Cake. These can further be processed into RBD OLEIN (Cooking Oil), Vegetable Ghee, Shortenings, Margarine, CBS. CBE, Ice Cream, Dough, Creaming, Coating, and other speciality fats. Some other by-products of the Oil Palm includes Palm wine, fatty alcohols as well as intermediates. Nature so made it that all aspects of the Oil palm tree is useful and economically viable.
"Oils" is a collective term for more or less viscous, generally organic-chemical liquids. Depending on their chemical composition, a distinction may be drawn between fatty, essential, mineral and silicone oils. Fatty oils include liquid, semisolid and solid products of vegetable and animal origin.
They are also known as sweet oils.Palm kernel oil is a white to yellowish oil of vegetable origin which is solid at normal temperatures and is obtained from the kernels of the oil palm (Elaeis guineensis). It is one of the best oils. Palm kernel oil is different from palm oil, which is obtained from the flesh of the fruit.Three {3} products namely palm kernel oil,palm kernel cake and plam kernel shell {crushed} which is used as a biofuel can be gotten from palm kernel nuts.
Palm kernel oil is processed to yield edible fats, soaps and candles and is used in the confectionery, pharmaceutical and perfume industries.
Palm Kernel Oil Specifications:
FFA (%) Max: 2.5
Moisture & Impurities (%) Max: 0.3
IV: 16-19
Colour (5 1/4" Lovibond) R: 3.4-4.5
Colour (5 1/4" Lovibond) Y: 30-32
MARKET:
The market for palm kernel oil and palm kernel cake ,a bye-product in the milling of palm kernel oil is large ,expanding and sustainable hence driving the need for palm kernel nuts.
Nigeria with a population of over 140 million people ,an estimated national population growth rate of 5.7% per annum, an average economic growth rate of 3.5% per annum in the past five {5} years is a large market for palm kernel oil because of the numerous applications of the product ,all these makes palm kernel nuts a well soughted after product because it is the raw material used in the production of palm kernel oil and cake.
Palm kernel nuts has both local and international markets but more emphasis would be layed on the local market and the price for the goods acry from time to time.
The investor can get buyer of the product in Lagos ,Enugu,Aba Ibadan etc.
LOCATION AND AVAILABILITY OF PALM KERNEL NUTS:
Palm kernel nut ,a bye-product from the milling of palm oil can be sourced from oil palm plantation scattered in the rain forest region in southern Nigeria. some of the states where the nuts can be sourced include Ekiti,Edo,Ondo, Anambra, Cross River,Oyo,Abia, Enugu ETC. The nuts can be sourced bit by bit from farmers after extracting the oil from the fruits in vollages or from palm oil producing companies. The product is usually available in large quantity during raining season from may to september and extends to december.
COST AND PROFIT ANALYSIS:
Note that 13 bags of Palm Kernel nuts make 1 tone.
Cost of buying a tone in the farm = N50, 000
Cost of 30 tones = N50, 000 * 30 = N1, 500,000
Price of selling a ton in any company in Lagos is = N65, 000
Price of selling 30 tones = N65, 000 * 30 = N1, 950,000
Expenses involved include
1. Nylon bags {Big ones} and each will cost an average of N100 per bag, so for a tone of 13 bags * N100 = N1, 300 and for 30 tones N1, 300 * 30 = N39, 000
2. Miscellaneous Expenses such as feeding, transportation to the farm, accomodation for the period of 2-3 days = N11, 000. The total expenses expected on a trailer load will be approximately N50, 000 per trailer.
PROFIT MARGIN =SELLING PRICE – COST PRICE + EXPENSES
= N1, 950,000 - N1, 500,000 + N50, 000
= N400, 000
NOTE THAT: WE ARE BUYING THE PRODUCT FROM A COOPERATIVE AND THEY WILL BE RESPONSIBLE FOR THE FOLLOWING LOADING COST, TRANSPORTATION COST {EVEN TRANSIT INSURANCE}. ALSO FOR THE GRADING FEES AND OTHER NECESSARY PAPERS ON THE ROAD AND THE WHOLE PROGRAMME CAN BE CONCLUDED IN TWO WEEK
Get the detailed business plan on the subject matter, by searching for the report on our sister website/company at www.marketreportportal.com
Report Title: CRACKING AND PROCESSING OF PALM KERNEL NUTS
IN NIGERIA
Product Code: FOR A/08/2011/09
We do accept payment by credit card and the report immediately downloaded to your desktop after payment.
You can send us a mail with the report title and product code for payment through bank wire and liberty reserve.
"Oils" is a collective term for more or less viscous, generally organic-chemical liquids. Depending on their chemical composition, a distinction may be drawn between fatty, essential, mineral and silicone oils. Fatty oils include liquid, semisolid and solid products of vegetable and animal origin.
They are also known as sweet oils.Palm kernel oil is a white to yellowish oil of vegetable origin which is solid at normal temperatures and is obtained from the kernels of the oil palm (Elaeis guineensis). It is one of the best oils. Palm kernel oil is different from palm oil, which is obtained from the flesh of the fruit.Three {3} products namely palm kernel oil,palm kernel cake and plam kernel shell {crushed} which is used as a biofuel can be gotten from palm kernel nuts.
Palm kernel oil is processed to yield edible fats, soaps and candles and is used in the confectionery, pharmaceutical and perfume industries.
Palm Kernel Oil Specifications:
FFA (%) Max: 2.5
Moisture & Impurities (%) Max: 0.3
IV: 16-19
Colour (5 1/4" Lovibond) R: 3.4-4.5
Colour (5 1/4" Lovibond) Y: 30-32
MARKET:
The market for palm kernel oil and palm kernel cake ,a bye-product in the milling of palm kernel oil is large ,expanding and sustainable hence driving the need for palm kernel nuts.
Nigeria with a population of over 140 million people ,an estimated national population growth rate of 5.7% per annum, an average economic growth rate of 3.5% per annum in the past five {5} years is a large market for palm kernel oil because of the numerous applications of the product ,all these makes palm kernel nuts a well soughted after product because it is the raw material used in the production of palm kernel oil and cake.
Palm kernel nuts has both local and international markets but more emphasis would be layed on the local market and the price for the goods acry from time to time.
The investor can get buyer of the product in Lagos ,Enugu,Aba Ibadan etc.
LOCATION AND AVAILABILITY OF PALM KERNEL NUTS:
Palm kernel nut ,a bye-product from the milling of palm oil can be sourced from oil palm plantation scattered in the rain forest region in southern Nigeria. some of the states where the nuts can be sourced include Ekiti,Edo,Ondo, Anambra, Cross River,Oyo,Abia, Enugu ETC. The nuts can be sourced bit by bit from farmers after extracting the oil from the fruits in vollages or from palm oil producing companies. The product is usually available in large quantity during raining season from may to september and extends to december.
COST AND PROFIT ANALYSIS:
Note that 13 bags of Palm Kernel nuts make 1 tone.
Cost of buying a tone in the farm = N50, 000
Cost of 30 tones = N50, 000 * 30 = N1, 500,000
Price of selling a ton in any company in Lagos is = N65, 000
Price of selling 30 tones = N65, 000 * 30 = N1, 950,000
Expenses involved include
1. Nylon bags {Big ones} and each will cost an average of N100 per bag, so for a tone of 13 bags * N100 = N1, 300 and for 30 tones N1, 300 * 30 = N39, 000
2. Miscellaneous Expenses such as feeding, transportation to the farm, accomodation for the period of 2-3 days = N11, 000. The total expenses expected on a trailer load will be approximately N50, 000 per trailer.
PROFIT MARGIN =SELLING PRICE – COST PRICE + EXPENSES
= N1, 950,000 - N1, 500,000 + N50, 000
= N400, 000
NOTE THAT: WE ARE BUYING THE PRODUCT FROM A COOPERATIVE AND THEY WILL BE RESPONSIBLE FOR THE FOLLOWING LOADING COST, TRANSPORTATION COST {EVEN TRANSIT INSURANCE}. ALSO FOR THE GRADING FEES AND OTHER NECESSARY PAPERS ON THE ROAD AND THE WHOLE PROGRAMME CAN BE CONCLUDED IN TWO WEEK
Get the detailed business plan on the subject matter, by searching for the report on our sister website/company at www.marketreportportal.com
Report Title: CRACKING AND PROCESSING OF PALM KERNEL NUTS
IN NIGERIA
Product Code: FOR A/08/2011/09
We do accept payment by credit card and the report immediately downloaded to your desktop after payment.
You can send us a mail with the report title and product code for payment through bank wire and liberty reserve.
Pprocessing and Export of Lead, Zinc and Copper Ore in Nigeria
For the benefit of those who need to know, an attempt would be made to define mineral and metal ore. Mineral is an inorganic substance found in nature with a characteristics chemical composition and in some cases, of definite crystal structure. The earth crust contains rocks of different composition with different physical properties. Some hard, some soft. Rocks are the materials which the earth's upper crusts are made of.
Rocks are themselves composed of minerals. Minerals are naturally occurring elements like Gold, or a compound such as Iron Oxide. If a rock contains a mineral from which a metal can be extracted at a profit, it is call an Ore. For example, copper Ore.
Uses
Depending on the mineral that can be found in the rock, the ore can be subjected to various uses. This is due to the fact that the rocks are of different composition hence different physical properties. We shall concentrate on the uses of Lead , Zinc and Copper Ores.
Lead Ore : Some of the uses of Lead are given below.
Lead is a major constituent of Lead- Acid battery. Lead is used as a coloring element in ceramic glazes, notably in the colors red and yellow. Lead is used as projectiles for firearms and fishing sinkers because of its density. Low cost compared to alternative products and ease of use due to relatively low melting point. Lead is also used in high voltage power cables as sheathing material to prevent water diffusion into insulation
Zinc Ore: The major uses of Zinc are > Anti – Corrossion coating on steel { Galvanizing }
> Precision Components {Die Casting}> Construction Material>Brass> Pharmaceuticals and cosmetics
Copper Ore: Copper is malleable and ductile, a good conductor of heat and, when very pure, a good conductor of electricity. Copper has been used as water-proof roofing material since ancient times, giving many old building their greenish roofs and domes. As a material in the manufacture of computer heat sinks, as a result of it's superior heat dissipation capacity to aluminium.
The market for Lead, Zinc and Copper ores especially the overseas market in China is large, expanding and sustainable because of the numerous use of these ores. Buyers usually would like to secure steady source of supply of these products. An exporter that is able to secure a contract at the right price would have an uphill task meeting the demand of the buyer because the output from the mines in Nigeria is low due to the use of crude implement. You can imagine a situation whereby the daily need of the factory of the buyer is 600/MT and the exporter would struggle to supply 500/MT on a monthly basis.
A detailed analysis of the cost and profit of the three ores namely Lead, Zinc and Copper is given below.
For Lead Ore 50%: International Market .
Cost of 1 ton of Lead Ore 50% at site = N40, 000/MTCost of 60 tons = N2, 400,000
Cost of 2% PB =N127,500 {When price is $850 and Quantity 60 tons}
Cost of transportation to site of Crushing/loading = N10,000/3 tons
Cost of 60 tons =N200,000{ Please do know that this cost can be eliminated if the site is accessible}
Cost of Crushing @ N40/Bag = N48,000 {Since 1 ton = 20 bags of 50 KG each}
Cost of packaging = N5000
Cost loading to the truck @ N20/ Bag = N24,000
Cost of transportation to Warehouse/Port = N180,000/30 tons=N360,000/60 tons
Cost of Testing =N100,000Cost of Freight = N78,000/20 FT Container{Since 20 tons= one 20 FT container, N78,000 * 3 = N234,000
Warehousing = N100,000
Deposition Fee = N150,000 { Returnable after shipment of goods}
Agent Fee = N80,000
Miscellaneous = N100, 000
Total = N3, 928,500
It is important that the exporter confirms the prices given above before going into the business because the prices of Lead Ore and the other services mentioned are not stable. With a good arrangement with the forwarding agent, the exporter can eliminate the cost of warehousing and deposition fee by choosing another shipping company with good freight cost. The miscellaneous expenses can not be more than N70, 000 but just to be a safe side, let put it at N100, 000.
As previously stated, the price of lead ore is usually a function of the lead content in the Ore and also the LME price. For this analysis, we would assume that the lead content is 50% and exporter was able to sign a contract at the price of $850/MT and Pro Rata at $13.7/1% . Given that we are dealing with 60 tons, below are the calculations
60 * $850/MT = $51,000
@ $1= N120
$51,000 = N6, 120,000
Profit = N6, 120,000 - N3, 928,500 = N2,191,500
This is the basic profit the exporter would make as profit without returning of the Cost of 2% PB and Deposition Fee.
Knowing that the Lead content is not stable and say the actual lead content is 56% and Pro-Rata at $13.7/1%, the calculation would now be
{56-50}% = 6% *$13.7= $82.2 $850 + $82.2 = $932.2
$932.2 * 60 tons = $ 55,932 @ $1=N120 = N6,711,840
Profit = N6,711,840 - N3, 928,500 = N2,783,340
For Lead Ore 50%: Local Market :
In the local market , delivery is usually done on Ex-warehouse basis .That is, the cost of talking the goods to the warehouse of the buyer . The distance of the warehouse from the mine usually affects the price. Delivery can also be at site .This is a situation where the buyer is buying at the mining site of the Exporter/miner.
Ex-warehouse price are usually in Naira and and if the destination to be delivered to is Lagos ,the price ranges from N65,000/MT –N80,000/MT depending on the negotiating skills of the seller and on the lead content. If the seller was able to to get an LPO for lead ore 50% N72,000/MT and Pro-Rata at N1000/1% , Below would be the calculation
Cost of 1 ton of Lead Ore 50% at site = N40, 000/MT
Cost of 60 tons = N2, 400,000
Cost of transportation to site of Crushing/loading = N10,000/3 tons
Cost of 60 tons =N200,000{ Please do know that this cost can be eliminated if the site is accessible}
Cost of Crushing @ N40/Bag = N48,000 {Since 1 ton = 20 bags of 50 KG each}
Cost of packaging = N5000
Cost loading to the truck @ N20/ Bag = N24,000
Cost of transportation to Warehouse/Port = N180,000/30 tons=N360,000/60 tons
Miscellaneous = N100, 000
Total = N2,677,000
Price of goods to Lagos =N72,000 /ton= N72,000 * 60 tons=N4320,000
Profit =N4320,000 - N2,677,000 = N 1,543,000
If the actual lead content is 56% and Pro-Rata at N1000/1%
{56-50}% =6% * 1000 = N6000 = N72,000 + N6000 = N78,000
N78,000 * 60 tons = N4,680,000
Profit = N4,680,000 - N2,777,000 = N1,903,000 .
For the Zinc and Copper Ores:
Overseas Market ; The cost of procuring Zinc and Copper ores from the mine is almost the same but for the fact that Zinc Ore would be at 50% and Copper Ore at 20%.
Cost of 1 ton at site = N30, 000/MT
Cost of 60 tons = N1, 800,000
Cost of 2% PB =N93,600 {When price is $650 and Quantity 60 tons}
Cost of transportation to site of Crushing/loading = N10,000/3 tons
Cost of 60 tons =N200,000{ Please do know that this cost can be eliminated if the site is accessible}
Cost of Crushing @ N40/Bag = N48,000 {Since 1 ton = 20 bags of 50 KG each}
Cost of packaging = N5000
Cost loading to the truck @ N20/ Bag = N24,000
Cost of transportation to Warehouse/Port = N180,000/30 tons=N360,000/60 tons
Cost of Testing =N100,000
Cost of Freight = N78,000/20 FT Container{Since 20 tons= one 20 FT container, N78,000 * 3 = N234,000
Warehousing = N100,000
Deposition Fee = N150,000 { Returnable after shipment of goods}Agent Fee = N80,000
Miscellaneous = N100, 000
Total = N 3,294,600
The Exporter/ Seler can get a contract at $650/MT for Copper Ore 20% and Zinc Ore 50% .Given that the Pro-Rata is $10/1% ,then the calculation would be
60 * $650/MT = $39,000 @ $1/N120=N4,680,000
Profit = N4,680,000- N 3,294,600 = N 1,385,400
If the Zinc and Copper content is actually 52% and 22% respectively ,then the calculation would be
2% * $10 = $20
$650+ $20 = $670
$670* 60 = $40,200 @ $1/N120=N4,824,000
Profit = N4,824,000 - N 3,294,600
=N1,529,400.
For the Local Market ;
Given that the seller secured the LPO at N50,000 and Pro- Rata at N1000/1% , the calculation is given below
Cost of 1 ton at site = N30, 000/MT
Cost of 60 tons = N1, 800,000Cost of 2% PB =N93,600 {When price is $650 and Quantity 60 tons}
Cost of transportation to site of Crushing/loading = N10,000/3 tons
Cost of 60 tons =N200,000{ Please do know that this cost can be eliminated if the site is accessible}
Cost of Crushing @ N40/Bag = N48,000 {Since 1 ton = 20 bags of 50 KG each}
Cost of packaging = N5000
Cost loading to the truck @ N20/ Bag = N24,000
Cost of transportation to Warehouse/Port = N180,000/30 tons=N360,000/60 tons
Miscellaneous = N100, 000
Total = N2,630,000
Profit = N50,000 * 60 = N3,000,000
= N3,000,000- N2,630,000
= N370,000.
Get the detailed business plan on the subject matter, by searching for the report on our sister website/company at www.marketreportportal.com
Report Title: LEAD, ZINC AND COPPER ORE EXPORT IN NIGERIA
Product Code: FOR A/08/2011/06
We do accept payment by credit card and the report immediately downloaded to your desktop after payment.
You can send us a mail with the report title and product code for payment through bank wire and liberty reserve.
Rocks are themselves composed of minerals. Minerals are naturally occurring elements like Gold, or a compound such as Iron Oxide. If a rock contains a mineral from which a metal can be extracted at a profit, it is call an Ore. For example, copper Ore.
Uses
Depending on the mineral that can be found in the rock, the ore can be subjected to various uses. This is due to the fact that the rocks are of different composition hence different physical properties. We shall concentrate on the uses of Lead , Zinc and Copper Ores.
Lead Ore : Some of the uses of Lead are given below.
Lead is a major constituent of Lead- Acid battery. Lead is used as a coloring element in ceramic glazes, notably in the colors red and yellow. Lead is used as projectiles for firearms and fishing sinkers because of its density. Low cost compared to alternative products and ease of use due to relatively low melting point. Lead is also used in high voltage power cables as sheathing material to prevent water diffusion into insulation
Zinc Ore: The major uses of Zinc are > Anti – Corrossion coating on steel { Galvanizing }
> Precision Components {Die Casting}> Construction Material>Brass> Pharmaceuticals and cosmetics
Copper Ore: Copper is malleable and ductile, a good conductor of heat and, when very pure, a good conductor of electricity. Copper has been used as water-proof roofing material since ancient times, giving many old building their greenish roofs and domes. As a material in the manufacture of computer heat sinks, as a result of it's superior heat dissipation capacity to aluminium.
The market for Lead, Zinc and Copper ores especially the overseas market in China is large, expanding and sustainable because of the numerous use of these ores. Buyers usually would like to secure steady source of supply of these products. An exporter that is able to secure a contract at the right price would have an uphill task meeting the demand of the buyer because the output from the mines in Nigeria is low due to the use of crude implement. You can imagine a situation whereby the daily need of the factory of the buyer is 600/MT and the exporter would struggle to supply 500/MT on a monthly basis.
A detailed analysis of the cost and profit of the three ores namely Lead, Zinc and Copper is given below.
For Lead Ore 50%: International Market .
Cost of 1 ton of Lead Ore 50% at site = N40, 000/MTCost of 60 tons = N2, 400,000
Cost of 2% PB =N127,500 {When price is $850 and Quantity 60 tons}
Cost of transportation to site of Crushing/loading = N10,000/3 tons
Cost of 60 tons =N200,000{ Please do know that this cost can be eliminated if the site is accessible}
Cost of Crushing @ N40/Bag = N48,000 {Since 1 ton = 20 bags of 50 KG each}
Cost of packaging = N5000
Cost loading to the truck @ N20/ Bag = N24,000
Cost of transportation to Warehouse/Port = N180,000/30 tons=N360,000/60 tons
Cost of Testing =N100,000Cost of Freight = N78,000/20 FT Container{Since 20 tons= one 20 FT container, N78,000 * 3 = N234,000
Warehousing = N100,000
Deposition Fee = N150,000 { Returnable after shipment of goods}
Agent Fee = N80,000
Miscellaneous = N100, 000
Total = N3, 928,500
It is important that the exporter confirms the prices given above before going into the business because the prices of Lead Ore and the other services mentioned are not stable. With a good arrangement with the forwarding agent, the exporter can eliminate the cost of warehousing and deposition fee by choosing another shipping company with good freight cost. The miscellaneous expenses can not be more than N70, 000 but just to be a safe side, let put it at N100, 000.
As previously stated, the price of lead ore is usually a function of the lead content in the Ore and also the LME price. For this analysis, we would assume that the lead content is 50% and exporter was able to sign a contract at the price of $850/MT and Pro Rata at $13.7/1% . Given that we are dealing with 60 tons, below are the calculations
60 * $850/MT = $51,000
@ $1= N120
$51,000 = N6, 120,000
Profit = N6, 120,000 - N3, 928,500 = N2,191,500
This is the basic profit the exporter would make as profit without returning of the Cost of 2% PB and Deposition Fee.
Knowing that the Lead content is not stable and say the actual lead content is 56% and Pro-Rata at $13.7/1%, the calculation would now be
{56-50}% = 6% *$13.7= $82.2 $850 + $82.2 = $932.2
$932.2 * 60 tons = $ 55,932 @ $1=N120 = N6,711,840
Profit = N6,711,840 - N3, 928,500 = N2,783,340
For Lead Ore 50%: Local Market :
In the local market , delivery is usually done on Ex-warehouse basis .That is, the cost of talking the goods to the warehouse of the buyer . The distance of the warehouse from the mine usually affects the price. Delivery can also be at site .This is a situation where the buyer is buying at the mining site of the Exporter/miner.
Ex-warehouse price are usually in Naira and and if the destination to be delivered to is Lagos ,the price ranges from N65,000/MT –N80,000/MT depending on the negotiating skills of the seller and on the lead content. If the seller was able to to get an LPO for lead ore 50% N72,000/MT and Pro-Rata at N1000/1% , Below would be the calculation
Cost of 1 ton of Lead Ore 50% at site = N40, 000/MT
Cost of 60 tons = N2, 400,000
Cost of transportation to site of Crushing/loading = N10,000/3 tons
Cost of 60 tons =N200,000{ Please do know that this cost can be eliminated if the site is accessible}
Cost of Crushing @ N40/Bag = N48,000 {Since 1 ton = 20 bags of 50 KG each}
Cost of packaging = N5000
Cost loading to the truck @ N20/ Bag = N24,000
Cost of transportation to Warehouse/Port = N180,000/30 tons=N360,000/60 tons
Miscellaneous = N100, 000
Total = N2,677,000
Price of goods to Lagos =N72,000 /ton= N72,000 * 60 tons=N4320,000
Profit =N4320,000 - N2,677,000 = N 1,543,000
If the actual lead content is 56% and Pro-Rata at N1000/1%
{56-50}% =6% * 1000 = N6000 = N72,000 + N6000 = N78,000
N78,000 * 60 tons = N4,680,000
Profit = N4,680,000 - N2,777,000 = N1,903,000 .
For the Zinc and Copper Ores:
Overseas Market ; The cost of procuring Zinc and Copper ores from the mine is almost the same but for the fact that Zinc Ore would be at 50% and Copper Ore at 20%.
Cost of 1 ton at site = N30, 000/MT
Cost of 60 tons = N1, 800,000
Cost of 2% PB =N93,600 {When price is $650 and Quantity 60 tons}
Cost of transportation to site of Crushing/loading = N10,000/3 tons
Cost of 60 tons =N200,000{ Please do know that this cost can be eliminated if the site is accessible}
Cost of Crushing @ N40/Bag = N48,000 {Since 1 ton = 20 bags of 50 KG each}
Cost of packaging = N5000
Cost loading to the truck @ N20/ Bag = N24,000
Cost of transportation to Warehouse/Port = N180,000/30 tons=N360,000/60 tons
Cost of Testing =N100,000
Cost of Freight = N78,000/20 FT Container{Since 20 tons= one 20 FT container, N78,000 * 3 = N234,000
Warehousing = N100,000
Deposition Fee = N150,000 { Returnable after shipment of goods}Agent Fee = N80,000
Miscellaneous = N100, 000
Total = N 3,294,600
The Exporter/ Seler can get a contract at $650/MT for Copper Ore 20% and Zinc Ore 50% .Given that the Pro-Rata is $10/1% ,then the calculation would be
60 * $650/MT = $39,000 @ $1/N120=N4,680,000
Profit = N4,680,000- N 3,294,600 = N 1,385,400
If the Zinc and Copper content is actually 52% and 22% respectively ,then the calculation would be
2% * $10 = $20
$650+ $20 = $670
$670* 60 = $40,200 @ $1/N120=N4,824,000
Profit = N4,824,000 - N 3,294,600
=N1,529,400.
For the Local Market ;
Given that the seller secured the LPO at N50,000 and Pro- Rata at N1000/1% , the calculation is given below
Cost of 1 ton at site = N30, 000/MT
Cost of 60 tons = N1, 800,000Cost of 2% PB =N93,600 {When price is $650 and Quantity 60 tons}
Cost of transportation to site of Crushing/loading = N10,000/3 tons
Cost of 60 tons =N200,000{ Please do know that this cost can be eliminated if the site is accessible}
Cost of Crushing @ N40/Bag = N48,000 {Since 1 ton = 20 bags of 50 KG each}
Cost of packaging = N5000
Cost loading to the truck @ N20/ Bag = N24,000
Cost of transportation to Warehouse/Port = N180,000/30 tons=N360,000/60 tons
Miscellaneous = N100, 000
Total = N2,630,000
Profit = N50,000 * 60 = N3,000,000
= N3,000,000- N2,630,000
= N370,000.
Get the detailed business plan on the subject matter, by searching for the report on our sister website/company at www.marketreportportal.com
Report Title: LEAD, ZINC AND COPPER ORE EXPORT IN NIGERIA
Product Code: FOR A/08/2011/06
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