The mining of minerals in Nigeria accounts for only 0.3% of its GDP, due to the influence of its vast oil resources. The domestic mining industry is underdeveloped, leading to Nigeria having to import minerals that it could produce domestically, such as salt or iron ore. Rights to ownership of mineral resources is held by the Nigerian government, which grants titles to organizations to explore, mine, and sell mineral resources.
About 34 minerals deposits have been identified in Nigeria and one of such is Niobium ore. Niobium Ore (Nb2O5) is used principally as an additive to improve the strength and corrosion resistance of steel and Foraminifera Market research through this feasibility study seeks to highlight the investment opportunity in the export of the commodity.
Niobium Ore (Nb2O5) is used principally as an additive to improve the strength and corrosion resistance of steel. Due to its refractive nature, it has gained application in jet engine components manufacture, rocket assemblies, and heat resisting and combustion equipment.
Large deposits of Niobium ore are known to occur in Nasarawa, Gombe, Plateau and Kogi States as well as the Federal Capital Territory. The deposits are both alluvial and primary in the numerous pegmatite bodies that infest these areas.
Niobium, like tantalum, can act as an electrolytic valve allowing alternating current to pass in only one direction through an electrolytic cell. Niobium is used in arc-welding rods for stabilized grades of stainless steel. It is also used in advanced air frame systems. Superconductive magnets are made with Nb-Zr wire, which retains superconductivity in strong magnetic fields. Niobium is used in lamp filaments and to make jewelry. It is capable of being colored by an electrolytic process.
Because of the numerous use of Niobium ore, great demand exist for the commodity.
The return on investment on the export of niobium ore is estimated between 10%- 15%.