Iron is just one of the most bountiful rocks forming material which is comprising approx. 5%of the planet’s crust. Significantly it is the fourth greatest bountiful element after oxygen, silicon, and aluminum. Among these elements, iron is one of the material which is dispersed widely on a large scale worldwide. Iron ore is a form of rocks or stone where iron metal extracted from these stones with an economical process. These rocks are typically discovered in the form of hematite or magnetite on the planet. Steel is an alloy of iron and about 98% of the world steel produced by processing these stones in the industry. Although, there are several other applications for which iron is used to manufacture such as- pipe, fitting, engine block, wheel, etc. but the primary is making steel.
There is no doubt that steel is one of the most beneficial metals recognized and being utilized 20 times greater than all other metal put together. Steel is solid, long-lasting, and incredibly versatile. The various type of steel is composed practically of iron with another small percentage of material. These materials are used to change the chemical and mechanical properties as per the requirement and application.
Investment in Infrastructure
The federal government of Nigeria has developed a road map for the advancement of the industry and mining sector to increase production, as well as, resolve the issues of unemployment and growth of the nation. The government has planning to invest and develop the easy transport facility to better delivery from iron ore to a steel manufacturer. Nigeria has poor infrastructure and it needs to be redeveloped for a better future of the steel industry. Due to the poor road and transport management in Nigeria, few iron ores yet to start for mining which can provide jobs and contribution to the GDP. This is one of the reasons that steel is imported from other countries to fulfill the domestic demand, as well as making new steel products from scrap material.
Investment from foreign in the mining sector
To urge foreign financial investment in the mining sector the federal government has changed policy and established reward such as giving of a three-year tax obligation holiday to brand new industries which might be prolonged for one more period of two years. The other thing which is the Nigerian government has changed in policy to unblock the opportunity in the iron and steel sector by making the mining sector exempted from payment of custom as well as import duties in regards to plant, equipment, as well as machinery accessories.