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                           How to invest in kaolin production for local, export markets

A report of the Nigerian Mineral Appraisal and Monetisation Programme (NIMAMO) confirmed about 450 industrial minerals whose deposits have been found in commercial quantities. These include limestone, clay, feldspar, barites, gypsum, salt, tak1, kaolin, phosphate, silica sand, magnesite, trona, asbestos, gold, and graphite. Large kaolinitic clay deposits with a capacity of up to 93 million tonnes have been identified all over the country, particularly in states such as Oyo, Kaduna, Sokoto, Ogun, Plateau, Borno, Ekiti, and Katsina states.

arrow yellowAbout three billion metric tonnes of kaolin is estimated to be deposited in various parts of the country; a document from the Raw Materials Research and Development Council (RMRDC) has shown. According to the document, there have been reported large deposits of kaolin in Katsina, Plateau, Bauchi, Ogun, Ondo, Niger, Oyo, Kwara, Benue, Enugu and Ekiti states, with the Katsina deposit adjudged the best for pharmaceutical purposes because of its chemical composition.

 

Kaolin is a weathering product of silicate rock, the naturally occurring hydrated aluminum silicate which may be white, yellowish-white, earthy, non-porous and odourless to dull and has a plastic and slightly oily feel. It is almost tasteless and practically insoluble in water.

 

The vast deposits are in Plateau, Bauchi, Niger, Kwara, Enugu, and Benue. Among all the states, Katsina provides the best quality Nigerian kaolin. Mining experts said it is one of the purest kaolinitic minerals that are great for pharmaceutical industries. Kaolin is a hard solid and versatile industrial mineral product with wide applications in industries, and agriculture among others.

 

Specifically, kaolin is widely used in many industries including; soap, detergent, rubber, cosmetics, paints (as fillers), plastics, chalk, fertilisers, pharmaceuticals, toothpaste, ceramic, insecticide, pulp and paper, agro allied industry, and iron and steel.

 

arrow yellowPricing: Processed kaolin comes out in different grades depending on the quality of raw materials used and the quality of processing. The specific grades in turn determine the pricing of kaolin, which ranges from N65,000/tonne for Grade 1090 to N80,000/tonne for Grade 1290.

 

arrow yellowProduction process: In terms of the production process, the crude kaolin is crushed with a hammer mill to reduce the size of big lumps before being lifted by the bucket elevator to the blunger.

The Blunger blunges the kaolin and the output is collected in a concrete bump from where it is lifted by a pump to the screens. The screens will remove the coarse sand and grit and the slurry is collected in a second lump. This process goes on from a second lump to a cyclone to septic tanks and the slurry from the septic tank is discharged into propylene (synthetic) bags. It is from these synthetic bags that water is squeezed out from the slurry. This final process gives the kaolin cake.

Kaolin is one of the industrial minerals that can be found in commercial quantity. In fact, Nigeria has an estimated reserve of about two {2} billion metric tones of kaolin deposit scattered in different parts of the country to include ogun, edo, plateau and Nassarrawa states.

The market for kaolin is large, sustainable and expanding because of the numerous applications of the product. Also there is an outright ban on the importation of kaolin into the country in order to stimulate the growth of the local industry.

Kaolin can be supplied in raw or processed form depending on the requirement of the buyer. There is market for the raw and processed kaolin in Nigeria and abroad but I would dwell on the processed one for the supply in the local market.

 

arrow yellowKaolin processing is of two types, the wet and dry process. The wet process is used when the silica content and impurities in the raw kaolin is high and usually the end product is high grade kaolin used in the pharmaceutical industry. The dry process involves the drying, crushing, sifting and bagging of the raw kaolin and it is usually employed for raw kaolin with less silica and impurity content.

 

There are no standard methods of processing for the treatment of different types of kaolin. Primarily the processing priority and the choice of suitable machines and equipment depend on the mineralogical spectrum of the crude kaolin and on the demands concerning the quality of the end products. The essential influencing factors which do not only determine the quality of the products but also the effort which should go into the technical processing are as follows:

 

– Type, %-proportion and particle size distribution of the clay minerals

 

– Type and %-proportion of silicate, oxidic and sulphide ‘’impurities’’

 

– Electrochemical surface phenomena of clay minerals

 

– Technological demands on the quality of the end products.

 

The effects of each of the factors overlap and have either a strengthening or weakening effect of specific quality characteristics. Therefore each factor can only be determined to a certain extent when assessing the attainable end qualities. These factors provide little information for the lay-out of a suitable process.

 

The kaolin cake is shredded or cut manually into small pieces to provide a greater surface area for fast drying. The Kaolin cake is then put in trays and fed into a chamber dryer which is heated by hot air at about 2500C.

The dried cake is fed into a hammer mill or pulverizer, which grinds the kaolin into the kaolin powder, which is then bagged and weighed in 50kg synthetic bags with polythene inner linings to keep off moisture.

Financial projection: Taking a hypothetical case of a plant that produces 1,000 tonnes of 1090 grade and 2,000 tonnes of 1290 grade at prices of N65,000 and N80,000 per tonne respectively, it has been estimated that a revenue of N250  million is realizable per year. All things being equal, annual profit is estimated at about 58 million during the first year.

 

Get our Practical Guide on Kaolin Production in Nigeria. Details of the production process, technology for kaolin production, markets and trade links and other information will be embodied in a bankable feasibility report for interested investors. 

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