INVESTMENT INTO NIGERIA SOLID MINERALS

1. INTRODUCTION
BACKGROUND:
AlphatechMatrix Investment LTDisindigenousmanagementconsultingandsolid minerals
procurementand sourcingfirm. We are into extractingof base metalsfrom the mineralsbody ores
that are abundantly depositedinmost ofthe part of Nigeria.The firm was foundedin2004 with a
corporate commitmentto applyingrigorous analysisand managementapproaches to solve the
managementproblemsof publicand private organizations and the publicin Nigeria.AlphatechMatrix
InvestmentLtd’s goal is to helporganization and the publicby becomingmore productive,
accountable,result-orientedandcreative to the community. We are also into real estate consulting
and services.
CORPORATESERVICES:
We have chosenby diversifyingourclientsrather than technical focus. The firmhas defineda
relativelynarrow range of expertise andwe stuck to what we know best.
AlphatechMatrix InvestmentLtd constitutes one of the leadingand respectedfirmsfor sourcing and
marketing of mineralsand in managementconsultingin Nigeria.Our clientscover most sectors of
economicactivitiesand range in sizesfrom individualsto some of the multi-national corporations. We
have sought to developandrefine effective managementmethodologiesandsystemsthat needs.In
our professional practice,we address a wide range of managementand have several affiliateswith
other specializedcompaniesandconsultants drawn from academia and the industry withinand
outside Nigeria.These personnel are trained and experiencedinmore developed disciplines.
Service focus:
Our strategic focus is on developmentofsolidmineralsmainlyin Nigeria.The focus of the present
regime of governmentinNigeriais to developextractionsof solidmineralsin alternative to crude oil
production for foreignearningsand to generate more employmentforthe youths in general. From
the facts and figures obtainedfrom the Ministryof Solidmineral cadastral officesin Nigeriawe have
the followingfacts:
(1)Nigeriaisendowedwith abundant mineral resourcesof diverse kinds.
(2)The proven reservesof46 solidminerals are in commercial quantitieswidelyspreadacross 450
locations across the country.
(3)Miningindustryis grossly under-developedinNigeria
(4)There is a massive demandfor mineral resourceswhich provide substantial trade and investment
opportunitiesforboth local and international investors.

2. Provenreservesof good qualitycoal lowin sulphur ash contentsare put at 2.75 billiontones.
Depositof iron ores isestimatedto 3 billiontones.
Bitumenreservesare put at over 4 billiontonesnearly doublesthe known reserve of crude oil.
Coal exportor usage for electricitygenerationis capable of earning or saving Nigeriaup to $6 billion
per annum.
Applyingour coal to generate electricitywouldyield7,000MW which can be the national base load
supplementedbyothersources for the next 30 years (Courtesyof Ministryof Mines)
Company strategy:
AlphatechMatrix InvestmentLtd is working hand in hand with a company that is based on acquiring
of miningsitesof metallicmineralsand quarries both in the North and southernpart of Nigeriawhere
we have large depositsof these minerals.Olasunkanmi okunola& partners Ltd/Morkland
Nig.Ltdare the indigenouscompany that have depositsof sitesfor lead/zincores,feldspar,tantalite,
Niobium,rutile,quarries,manganese,gold depositand so on. These sitesare legallyoccupiedby the
company through Nigeriaauthority on solidmineralsfor explorationand exploitationof minerals.All
these siteswill last a minimumof 50 years of mineralsminingactivities.
Feasibility studiesonanalysis of quarry sites at Wasimi and Gbonsenuand
Metallic minerals mining of lead/zinc ores:
The machineryand equipmentrequiredare listedbelow:Detailsspecificationsare broadly narrated
on the listbut when the funds are ready furtherswill be sorted from eithermanufacturer or suppliers.
The conclusive amount mentionedinthisreport is not much accurate because the prevailing
equipmentprice may not be applicable to the purchase if the fundsare not available withinthe next
ninetydays from written of this report. Base on the reserve estimate all the machinery and
equipmentsmay be due for changesin the course of utility.All the machinery and equipmentare for
the quarriesand metallicmineralsinOyo and Ondo state to meetmarkets of Lagos and south south
regionof Nigeriawhere massive construction are taking place and the other metallicmineralsare for
export for sales.
For the quarry sitesthe total landthat harbors the rock is about 750 acres .Thisis sufficientto meetall
the markets of Lagos and south south construction projects.For international markets the products
from minesat Nassarawa, kogi and Oyo state will discharge minesmaterialslike lead/zinc ores,
Niobium,tantalite,copper oresof economicdepositto the global market.
About N=250,000,000(Two hundred and fiftymillionNaira) or $850,000(Eight hundred and fifty
thousand dollars) will be spentfor rehabilitationof all residentswithinthe short distancesfrom all the
minesand quarries. While anotherN=120,000,000(One hundred and two millionnaira) or $400.000

3. (Four hundredthousand dollars) will be spentto meetall the communityDevelopmentAssignments
for all the land acquired for these projects operation.
There is a massive demandfor granite products in the local market of Nigeriaand abroad and granite
tiles,granite paving stones,facing and granite slabs besidesthe granite aggregatesin the sub-region
of west–Africa.
For the managementsof this projectthe company will accommodates the servicesofhigh caliber
professionals.All these are shownin the listbelowfor staff’
For a successful operationofthe two quarries sites and mining of lead/zincores site at Nassarawa
state we are projectinga cost estimate of $25,000,000(Twenty five thousanddollars
only) consideringthe inflationrate that will be met during the course of machineryprocurement and
before the starting ofthe project.
The projectedreserve for the granite depositis about 180,000,000 (One hundredand eighty million
tons) and at a regular production of 2.5 milliontonsannually of the granite aggregate and granite
mable,pavingstonesand slabs could last 60 years of miningactivities.
The projectedamount neededtoinveston the sitesand for the purchase of necessaryequipmentfor
the quarry siteswill be adequatelyenoughfor the projectsif eventuallygivenbythe investor.The
followingequipmentisneededtorun these quarry and lead/zincores sites successfully.Theyare:
(1).Complete stone crusher
(2)Air Compressormodel HJC 900/350XA
(3)Wagondrill rock 302-00 with pneumaticrock drill
(4)Terexdump truck
(5)50 tons crane (chain)
(6)50 tons crane wheel
(7)25 tons tippingtrucks
(8) Mobile workshopvehicle
(9)Low loadertruck
(10)Fuel tanker 33000-45,000CEF
(11)Generator1500KVA
(12)Generator700kva

4. (13)BulldozerD8 CAT
(14) Excavator 320B-CAT
(15)Hand heldAtlas Copco Jack hammer of Lbar rock rollerdrill 18.44kg RH
(16)Pneumaticbit regrindingMachine 1.5KW for integral drill steel
(17)Pneumaticbutton bit regrindingmachine with bit template
(18).10M Capacity air reservoir
(19)Conveyorbelts 0.7m with 200 T/hr capacitiesfor 400m length
(20)Grizzlywith capacity 500tonne/hr
(21)Explosive detonatormagazine mobile
(22)Weighbridge
(23)Pail loader050/966 CENT
(24)Giantwater Plumb-machine
(25)Borehole drill machine
(26)Motor Grader MG 120
(27)Personal Transport Bus
(28)Service Jeep
(29)UtilityJeepequivalent
Staff Organization
Management:
General Manager
Quarry Manager/Mining Manager
Finance/Adm.Manager
Complementary Staff to M/G
Secretary/Typist

5. Cleaners
Drivers
OperationStaff:
Quarry supervisor
Asst. Quarry Supervisor
Processing/ProductionStaff:
Drillers Blaster, General Labor
Drivers
Outlet/General Staff:
Sales Supervisor
Accounting Staff
Clerical Officer
Cashier
Rough estimateson financial feasibilitystudiesonthe Quarry site and salesof granite on site for the
1st
year of production:
Based on the projectedsite price of N-1,500 per ton
Production capacity per year: 518,400 tons (average rate of 60 trucks per day after 3 months of
installation)
SalesCapacity: 458,000 tons (average of53 trucks per day)
WorkingDuration: 6 hr/day by 6days/week
SalesRevenue: N=687,600,000
GrossIn-flow N=687,600,000
LESS: Utility,Personnel andlevies

6. Diesel N25, 000,000
Labor N20, 000,000
Traditional land levy N25, 000,000
LESS: Equipmentexpenses
(1). (1).Complete stone crusher N=160,000,000
(2)AirCompressormodel HJC 900/350XA N=70,000,000
(3)Wagondrill rock 302-00 withpneumatic rock drill N=160,000,000
(4)Terexdumptruck N=60,000,000
(5)50 tons crane (chain) N45, 000,000
(6)50 tons crane wheel N=43,000,000
(7)25 tons tippingtrucks N=35,000,000
(8) Mobile workshopvehicle N=7,500,000
(9)Low loadertruck N=75,000,000
(11)Generator1500KVA N85, 000,000
(12)Generator700kva N=65,000,000
(13)BulldozerD8 CAT N=90,000,000
(14) Excavator 320B-CAT N=70,000,000
(15)Hand heldAtlas Copco Jack hammer of Lbar rock rollerdrill 18.44kg RH-N=40,000,000
(16)Pneumaticbit regrindingMachine 1.5KW for integral drill steel –N28, 000,000
(17)Pneumaticbutton bit regrindingmachine with bit template- - DITTO-
(18).10M Capacity air reservoir N=10,000,000
(19)Conveyorbelts0.7m with 200 T/hr capacity for 400m length N85, 000,000
(20)Grizzlywith capacity 500tonne/hr N=40,000,000
(21)Explosive detonatormagazine mobile N15, 000,000
(22)Weighbridge N25, 000,000

7. (23)Pail loader050/966 CENT N15, 000,000
(24)Giantwater Plumb-machine N=10,000,000
(25)Borehole drill machine N35, 000,000
(26)Motor Grader MG 120 N30, 000,000
(27)Personal Transport Bus N=3,000,000
(28)Service Jeep N3, 000,000
(29)UtilityJeepequivalent N3, 500,000
TOTAL N=1,308,000,000
LESS: Site structures
Construction slab for crusher N=25,000,000
Workshop + tools for stones N=10,000,000
Quarry office N=5,000,000
Contingencies N=5,000,000
TOTAL N=45,000,000
LESS: Bank Interest
Bank charges,VAT N55,000,000
MiscellaneousInterest N10, 000,000
National Royalty N=20,000,000
TOTAL N=85,000,000
LESS:
Rehabilitation/RelocationofCommunity N250, 000,000
CommunityDevelopmentfund N120, 000,000
TOTAL N=370,000,000
Note:The amount of N370,000,000 will be spread for a minimumof 10 years of operation,that is,an
average amount of N=37,000,000 will be spentper year.

8. Total Gross Expenses: N1, 545,000,000
Therefore,foreach Quarry site a minimumamount of N=1,545,000,000 will be spent.
For the two sitesof the Quarry sites,itwill engulfa minimumof N=3,090,000,000
Analysisof the cost is:
1 st Year 2nd
Year 3rd
Year
Recurring Expenditure N=192,000,000 N=195,000,000 N199,756,800
FixedCapital Assets N=1,453,000,000 N=1,476,500,000 N1,500,530,600
TOTAL N1,645,000,000 N1,672,370,000 N1,700,287,400
SalesRevenue N=687,600,000 N=756,360,000 N=831,006,000
FacilityInterest2.5% ------------------- -------------------- N93,750,000
NetIn-flow (N=680,900,000) (N=639,510,000) (N=738,246,000)
Assumptionswe usedfor the feasibilitystudiesare:
(1).Borrowing of $25,000,000 and at the service rate of 2.5% after 2 years of Moratorium is possible
and realistic.
(2)The price of granite on site at N=1,500 /ton is feasible andrealistic.
(3)The production of granite at 1,800 tons per day and salesof 1,500 tons perday after equipment
installationis realistic.
(4) Exchange rate of N300 per 1 USD isrealistic.
(5)An average Net In-flowofN=650,000,000 or more is realisticon yearly basis.
(6).The payback time of the loan is veryshort
(B) For the feasibilitystudiesonthe salesof lead/zincores in Germanybase metalsRefinery/Smelter
Company we have as below:
Site assay analysisof Lead/Zinc ores is: Pb (Leadcontent) ---------------84%Pb and Ag (Silver
content)…..0.05%Ag.
London Metal Exchange price (LME):For Pb =$2,500 per ton and Ag =$35 per troy ounce.
Site miningproduction of Lead/zinc ore isbased at 120,000MT per year which is very realistic.
SalesAnalysis:
Cargo Weight(wetmetric tons) 120,000MT

9. Moisture content 1%
Dry weight(dry metric tons) 118,800MT
PAYMENT
Lead (Pb)
LME $ per metric ton $2,500
Pb %( basedon sample assayed by smelter) 84%
Payable Pb in cargo (mts) 99,792MT
Less 5% (smelter’sdeduction) ofpayable Pb 4,989.6MT
Total value of Pb incargo (prior to the smelter’sT/C and R/C deduction) $237,006,000
SmelterTreatment and RefiningCharges(Pb Only)
SmeltertreatmentCharge (T/C) per dry metric ton $212
Total T/C $25,185,600
RefiningCharges
Smelter’sPb RefiningCharges(R/C) perIb $0.09
Cargo weight (Ibs) 261,835,200Ibs
Total Pb R/C $23,565,168
NetTotal Lead value $188,255,232
SILVER
London BullionPrice $ per oz $35
Ag % (basedon assayed sample) 0.05%
Payable Ag incargo 59.4MT
Convertedto Troy oz (Payable Ag) 1,909,752.92 oz
Smelterdeduction:50grms per dry metric tons 190,982.88oz
Total Ag value (aftersmelter’sdeduction) 1,718,770.04 oz
= $60,156,051.40

10. SmelterRefiningCharges(Ag only)
Ag R/C per oz (basedon payable Ag) $0.05
Payable Ag: 1,909,752.92 oz x $0.50 $954,876.46
Total Ag R/C $954,876.46
NetTotal value of Silver(Ag) = $59,202,074.94
Therefore,Total CIF Cargo which smelterwill pay for (Ag +Pb) = $247,457,306.94
The Gross Profit = $247,457,306.94
LESS:
Expenses before Shipping from Lagos Port
Warehousing @N=2,500/MT for the first 21days = N=25,000,000
Contecna charges (stuffing, weighing, and testing) =N=16,000,000
Forwarding agent =N=10,000,000
Loading/offloading in Lagos @N=15,000/25MT Truck =N=6,000,000
Bags for bagging/MT (10,000 Bags) @N=250/bag =N=2,500,000
Labor charges for re-loading in 1MT bag =N=1,000,000
Transport cost from warehouse to Port =N=28,000,000
Pallets charges and lifting by folk-lift machine =N=3,000,000
Off-loading/loading at Warehouse and Port =N=2,000,000
Transport from Nassarawa (25MT/Truck) @ N=200,000 =N=80,000,000
Export processing (NEPC) Charges =N=3,000,000
Miscellaneous Expenses =N=43,000,000
TOTAL =N=219,500,000

11. LESS:
Bank Charges:
1% Handling charges =N=7,000,000
C.O.T 0.5% =N=3,600,000
Transfers,E-mails,V.A.T e.t.c =N=1,000,000
TOTAL =N=11,600,000
LESS:
NESS and Nigeria Port Authority charges of 1% Handling charges =N=7,000,000
Overall TOTAL =N=238,100,000
At exchange rate of N=300 to a 1$ USD is equivalent to =$793,666.67
NET PROFIT PER YEAR =$246,663,640.27
NET PROFIT PER MONTH =$20,555,303.36
Assumptions we consideredfor the transactionare:
(1)The Exchange rate is at N=300 =1$ USD
(2)Production of 10,000MT is realistic per month.
(3) Conveying or movement of 10,000MT to the nearest Port is possible
(4)All costs are well taken care-of for the supply of 10,000MT to the warehouse
(5)Production of 120,000MT per year is based on conservative site production

12. Conclusion
Goingby the mineral reserve Nigeriahave which are yet to be fullytapped the profit in solidminerals
is more betterthan in any other sector if all the avenue is properlychannel.If the right tools are used
in miningwe will achieve a greater profit.The payback time of any amount investedintosolid
mineralsare always short and betterthan any return on investmentofthe other sector. Therefore I
encourage any interested foreigninvestortoinvestinto Nigeriasolidmineralsnow as the area isstill
freshand virgin.