Nigeria has enormous tin ore development potentials
----Interview with Bolaji Ogundeji
General Manager
Bolcris international Co., Ltd.
- Bolcris international Co., Ltd. was established in 2005. The company is an international trading company with offices in some states in Nigeria. The company’s business covers a wide range of metal minerals, chemicals refractory raw materials for diverse production. The company has an experienced and knowledgeable team, they have a deep understanding of the market and its dynamics, the company's strong team, outstanding professional ability, deep experience in the industry, not only has a deep grasp of the market dynamics, but also based on the supplier and customer information to build a strong supply network, and thus constantly strengthen their own competitive advantage.
- Asian Metal：Welcome Mr. Bolaji Ogundeji to accept interview by Asian Metal. Please introduce your company.
- Mr. Bolaji Ogundeji: Our company was established in 2005, 400 kilometers away from the capital Abuja. We can export our products by land transport to the main ports in the country. We mainly produce and export tin and nickel. We own a cooperative mine and a dressing plant with a monthly production of 60-70 metal tons for tin concentrate 60-70%min.
- Asian Metal：What are the advantages of African mines compared with those of other countries?
- Mr. Bolaji Ogundeji: Nigeria's tin mining began in the 9th century, achieved large-scale production in the early 20th century and reached a peak production in the 1970s of the same century, after which production gradually declined, and today its tin mine share of the world is less than 2%. So African tin ore have huge potential for development. In addition, as far as I know, most of the world's mines have fast grade decline and are mostly underground mining, which is difficult to exploit, high cost and high risk. In Africa, tin resources are mostly distributed in Nigeria, South Africa and Namibia, and its deposits are mostly sedimentary impact deposits, not only is it easy to mine, but also the cost of mining is low, which is also a prominent advantage.
- Asian Metal：What is Nigeria's policy on exploitation?
- Mr. Bolaji Ogundeji: Nigeria is Africa's largest energy producer, but its vast mineral resources have not been exploited because of insufficient incentives and attention. The underdeveloped mining industry contributes less than 1% of the country's GDP. The government hopes to expand investment by issuing more permits. Nigeria has set up a state-owned solid minerals company, offering investors a 75% stake, and a dedicated security force tasked with cracking down on illegal mining. The government intends to regulate Nigeria's mostly artisanal mining and encourage the formation of cooperatives.
- Asian Metal：What is the exports situation of tin concentrate in Nigeria and what are the main exporting countries?
- Mr. Bolaji Ogundeji: In 2022, Nigeria exported tin ore worth USD246 million, becoming the second largest exporter of tin ore in the world. At the same year, tin ore was the 11th most exported product in Nigeria. In 2023, Nigeria's mineral exports were mostly tin ore and tin concentrate, with exports of about USD108 million, mainly to China and Malaysia, of which tin concentrate with an average grade of 65%min.
- Asian Metal：What is your opinion on the demand for tin ore in the Chinese market?
- Mr. Bolaji Ogundeji: Tin is a versatile metal that finds its applications across multiple industries. It is primarily used in the production of solder, which is important raw material for the packaging industry. Additionally, tin is used for coating steel and other metals to prevent corrosion, making it essential for the packaging industry. It's low toxicity and resistance to oxidation makes it ideal for food and beverage canning. China is the largest consumer of tin, accounting for about 40-50% of global consumption, and China is also one of the largest importers of tin ore. In recent years, China's demand for tin ore, especially the proportion of tin ore imported from Africa, has gradually increased, so that we are full of confidence in the Chinese market demand.
- Asian Metal：What is the current cooperation model between African companies and Chinese clients?
- Mr. Bolaji Ogundeji: At present, the main way of cooperation is to attract Chinese enterprises to invest and jointly develop mines. Nigeria is one of China’s biggest trade partners in Africa. As Nigeria's traditional development partners, such as the US and the UK, put more emphasis on improving social services in Nigeria rather than investing in capital-intensive projects, China has strongly supported our infrastructure development by providing interest-free loans, which is more in line with Nigeria's development needs than the investments given by the UK and the US.
- Asian Metal：The international prices of tin concentrate increased since February, what are the main reasons?
- Mr. Bolaji Ogundeji: Demand is improving, driven by an upturn in the global technology cycle. In China, electrical and electronics products have also benefited from the government's stimulus package for tin-related industries. In addition to tin solder used in electronic and electrical equipment, growth in the green energy and semiconductor industries boosted demand. Global microchip production in December was up 34% YoY, electric vehicles up 44% and solar PV up 17%. The global situation is also improving, with the semiconductor industry moving from a sharp decline in 2023 to a recovery in late 2023 and early 2024. In December 2023, global sales increased by 12% YoY, the fastest growth rate since June 2022. There are also supply challenges in China and Indonesia, which together produce 67% of the world's refined tin, but more than 95% of Chinese refined tin is consumed domestically, while Indonesia's refined tin supply is now being decimated by limited export quotas. Thus, the global supply of fine tin in the second half of this year is likely to tighten. This is the main reason for the rise in tin prices.
- Asian Metal：Please forecast the international tin price trend in the second half of this year and briefly explain the reasons
- Mr. Bolaji Ogundeji: We expect prices to be volatile, but the prices would go up in the second half of the year, probably reaching USD27,700/t. Because we hold an optimistic view to the demand of the Chinese market.
- Asian Metal：What are your expectations for the business this year?
- Mr. Bolaji Ogundeji: We hope to have more opportunities to communicate with overseas clients, especially Chinese clients. Find more long-term partners through Asian Metal platform.
