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How to sell iron (Ilminite iron ore) from Nigeria to a Chinese buyer using CIF terms.
Note: We deal in all solid minerals supply from Nigeria and only a serious buyer – WhatsApp +234 8056026356
Here’s a breakdown of what you’d need to do as the seller under CIF (Cost, Insurance, and Freight):
Steps to Sell Iron Ore CIF from Nigeria to China
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Agree on Terms with the Buyer
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Negotiate the price, quantity, and quality of the iron ore (e.g., grade, iron content percentage).
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Specify the destination port in China (e.g., Qingdao, Shanghai, or Tianjin).
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Confirm the deal is CIF, meaning you’ll cover the cost of the goods, insurance, and freight to that port.
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Source and Prepare the Iron Ore
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Ensure you have the iron ore ready from a Nigerian mine or supplier.
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Arrange for quality testing and certification (e.g., by SGS or a similar agency) to meet the buyer’s specifications and international standards.
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Package or load the ore (usually in bulk) for shipping.
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Arrange Transportation to the Nigerian Port
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Move the iron ore from the mining site to a Nigerian port (e.g., Lagos, Port Harcourt).
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Handle any local logistics costs (trucking, rail) and export documentation (e.g., export license, certificate of origin).
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Book Shipping and Pay Freight Costs
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Hire a shipping company or freight forwarder to transport the iron ore to the Chinese port.
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You’ll pay the freight charges to get the goods loaded onto the ship and delivered to the destination.
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Obtain a Bill of Lading (B/L) as proof of shipment.
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Secure Cargo Insurance
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Purchase marine insurance to cover the iron ore during the sea journey from Nigeria to China.
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The insurance should protect against risks like loss, damage, or theft, and you’ll provide the policy to the buyer.
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Coverage typically needs to be at least 110% of the cargo’s value, per standard trade practice.
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Provide Documentation to the Buyer
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Once the goods are loaded onto the ship at the Nigerian port, your main obligations under CIF are met. You’ll then send the buyer:
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Bill of Lading (proof of shipment).
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Insurance policy or certificate.
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Commercial invoice (detailing the goods and price).
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Packing list, certificate of quality/quantity, and any other agreed documents.
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Transfer of Risk
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Under CIF, the risk transfers to the buyer once the iron ore is loaded onto the ship in Nigeria. After that, they’re responsible for any issues during transit, though your insurance covers their financial risk.
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Payment
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Agree on payment terms upfront (e.g., Letter of Credit, wire transfer). With CIF, buyers often pay once they receive the shipping documents, which you’d send through a bank or directly, depending on the deal.
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Practical Example:
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You’re selling 50,000 metric tons of iron ore from a mine in Kogi State, Nigeria, to a buyer in Qingdao, China.
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You arrange trucking to Lagos Port, book a bulk carrier, and pay freight costs of, say, $20/ton (depending on market rates).
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You buy insurance for the cargo (valued at $2 million, insured for $2.2 million).
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Total CIF price might be $80/ton (goods: $60/ton + freight: $20/ton + insurance: negligible per ton).
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The buyer pays you $4 million total, and they handle unloading and customs in Qingdao.
Things to Watch Out For:
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Shipping Costs: Freight rates fluctuate based on fuel prices, demand, and vessel availability. Get quotes from multiple shipping lines.
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Insurance: Ensure it covers the full journey and meets the buyer’s requirements.
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Port Delays: Nigerian ports can have congestion or bureaucratic hurdles—plan extra time.
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Buyer Trust: Verify the Chinese buyer’s credibility to avoid payment issues.
Ilmenite in Nigeria: Overview
Ilmenite is a titanium-iron oxide mineral (FeTiO₃) and the primary source of titanium dioxide (TiO₂), widely used in industries for producing pigments (e.g., in paints, plastics, and paper), titanium metal, and other applications. In Nigeria, ilmenite is one of the country’s many mineral resources, though it has not been as extensively mined or publicized as commodities like oil, coal, or gold. Its presence and potential, however, make it significant for the mining sector, especially as Nigeria seeks to diversify its economy away from oil dependency.
Occurrence and Deposits
Ilmenite is found in various parts of Nigeria, often associated with placer deposits (e.g., beach sands) and igneous or metamorphic rocks. Specific locations where ilmenite has been identified include:
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Plateau State: Notably around Jos and surrounding areas like Kuru and Gindi Akwati in Barkin Ladi. Studies have linked ilmenite here with columbite-rich deposits, suggesting potential for multi-mineral extraction.
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Akwa Ibom State: Reports of illegal mining activities have highlighted ilmenite extraction in areas like Ibeno and Ibiono, often tied to titanium-iron oxide deposits.
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Other Regions: Ilmenite occurrences are also noted in states like Bauchi and Kaduna, typically alongside other heavy minerals in sedimentary or alluvial settings.
Nigeria’s total ilmenite reserves are estimated to be substantial, with some sources suggesting between 200 and 240 million tons, though official geological surveys are limited, and much of this remains untapped or underexplored. The mineral is often found in beach sands or weathered deposits, concentrated by natural gravity processes, making it suitable for placer mining.
Quality and Composition
Nigerian ilmenite is recognized for its relatively high titanium content. Some deposits reportedly average around 45% TiO₂ by weight, which is competitive globally (though not as high as premium sources like Australia’s, which can exceed 50%). This quality positions Nigeria as a potential key player in the ilmenite market, especially for titanium dioxide production.
Mining and Economic Potential
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Current Status: Ilmenite mining in Nigeria is underdeveloped compared to oil or even artisanal gold mining. Much of the activity around ilmenite has been small-scale or, in some cases, illegal, as seen with recent arrests of foreign nationals in Akwa Ibom for unauthorized extraction.
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Economic Diversification: The Nigerian government, through the Ministry of Solid Minerals Development, has been pushing to exploit solid minerals like ilmenite to diversify revenue streams. Events like Nigeria Mining Week emphasize this shift, highlighting minerals critical for industrial applications.
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Applications: Locally, ilmenite could support industries needing titanium dioxide (e.g., paint manufacturing) or titanium metal (e.g., aerospace, construction). Globally, Nigeria’s ilmenite could feed export markets, especially in Asia, where demand for titanium products is growing.
Challenges
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Illegal Mining: Cases of unauthorized ilmenite extraction, particularly by foreign entities, have raised concerns about revenue loss and environmental damage. For instance, in 2024, the EFCC arrested five Chinese nationals in Akwa Ibom for illegally mining ilmenite.
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Infrastructure: Poor mining infrastructure, port delays, and logistical challenges (e.g., at Lagos or Port Harcourt) hinder large-scale ilmenite export under terms like CIF.
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Regulation: The Federal Government owns mineral rights, but enforcement of mining laws (e.g., the Nigerian Minerals and Mining Act of 1999) is weak, leading to underreported production and exports.
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Exploration Data: Limited comprehensive geological surveys mean ilmenite deposits are not fully mapped or quantified, deterring major investment.
Opportunities
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Global Demand: The ilmenite market is projected to grow, with titanium dioxide demand driving prices (e.g., from $3337.51 million in 2022 to $3452.45 million by 2028 globally). Nigeria could capitalize on this with its reserves.
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CIF Advantage: Selling ilmenite CIF to China, as you mentioned earlier, allows Nigerian sellers to cover costs up to the destination port, potentially fetching higher margins if logistics improve.
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Local Processing: Developing domestic titanium dioxide or metal production could add value, reducing reliance on raw exports.
Example Scenario
If you’re selling ilmenite from Plateau State to a Chinese buyer CIF Qingdao:
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Source: Extract from a deposit near Jos, with 45% TiO₂ content.
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Logistics: Transport to Lagos Port, load onto a bulk carrier, and ship with insurance.
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Pricing: Assume $200/ton (global ilmenite prices vary; this reflects recent trends), with freight at $20-30/ton and insurance minimal. A 50,000-ton shipment could gross $10 million, with you covering ~$1.5 million in shipping costs.
Conclusion
Ilmenite in Nigeria holds promise but is held back by structural issues. It’s abundant, of decent quality, and strategically relevant as a critical mineral. With better regulation, investment, and infrastructure, it could become a cornerstone of Nigeria’s mining sector—especially for sellers like you aiming for CIF deals with markets like China. If you’re diving into this, securing legal permits and reliable shipping partners will be key.
