PROFILE ON PRODUCTION OF GYPSUM

Nigeria presently has about 1Billion MT of gypsum spread over many states. Gypsum is used in the production of Plaster of Paris, Cement and Chalk.  Nigeria's domestic production of gypsum is trending upwards, but still lags behind the rapidly growing demand from the cement industry and plaster of paris processors. This supply deficit resulted in the increase in the price of gypsum(unwashed gypsum), reaching a high N7,000.00 per ton  in  2014.

This profile envisages the establishment of a plant for gypsum processing with a capacity of 9,000 Tons per annum.

The present demand (in cement industry) of gypsum is estimated at 230,000Tons per annum. The demand is expected to reach about 320,000 by the year 2022.

The plant will create employment opportunities for 11 persons. The total investment requirement is estimated at about N11.005million, out of which N3.0 million is required for plant and machinery.

The project is financially viable with the following profitability indices:

 

Average Return on Assets

73.60%

Average Return on Equity

87.20%

Average Return on Sales

8.90%

Average Debt service coverage

26.5

Average proportion of Debt

0.081

Average proportion of Equity

0.919

Average Debt/Equity Ratio

8.1:91.9

Average Operating ratio

80.10%

Average current ratio

1.46

UnDiscounted Pay back period (yr)

3.6

Net present Value (N000)

33826.8

Internal Rate of Return

50.20%

Profitability Index

0.9

Break Even point(Based on year1)(Sales)

42083.9

Fractional capacity utilization

0.285

Selling Price N000.00

26

 

I.                 PRODUCT DESCRIPTION AND APPLICATION

 

Gypsum is a very soft mineral composed of calcium sulfate dihydrate, with the chemical formula CaSO4•2H2O. Gypsum is moderately water-soluble (~2.0–2.5 g/L at 25 °C) and, in contrast to most other salts, it exhibits a retrograde solubility, becoming less soluble at higher temperatures. As for anhydrite, its solubility in saline solutions and in brines is also strongly dependent on NaCl concentration. Gypsum crystals are found to contain anion water and hydrogen bonding. Crystal varieties Gypsum occurs in nature as flattened and often twinned crystals and transparent cleavable masses called selenite. It may also occur in a silky, fibrous form, in which case it is commonly called satin spar. Finally it may also be granular or quite compact. In hand-sized samples, it can be anywhere from transparent to opaque. A very fine-grained white or lightly tinted variety of gypsum is called alabaster, and is prized for ornamental work of various sorts. In arid areas, gypsum can occur in a flower-like form typically opaque with embedded sand grains called desert rose. Up to the size of 11 m long, gypsum forms some of the largest crystals found in nature, in the form of selenite.

Table 1 Physical Properties of Gypsum

Chemical Classification

sulfate

Color

clear, colorless, white, gray, yellow, red, brown

Streak

white

Luster

vitreous, silky, sugary

Diaphaneity

transparent to translucent

Cleavage

perfect

Mohs Hardness

2

Specific Gravity

2.3

Diagnostic Properties

cleavage, specific gravity, low hardness

Chemical Composition

hydrous calcium sulfate, CaSO4.2H2O

Crystal System

monoclinic

Uses

Use to manufacture dry wall, plaster, joint compound. An agricultural soil treatment.

 

 

II.               MARKET STUDY

 

The current population of Nigeria estimated at over one hundred and seventy million growing at a rate of 3.5% per annum has a shortfall in the supply of housing units estimated to be between 16-17million, has a growing and sustainable market for cement and plaster of paris, hence gypsum. With an economic growth rate of 5.7% per annum in the past five years, Nigeria has witnessed a growth in the number of middle class families with the associated need to have home of their own, thereby further deepening the gypsum market in Nigeria. Nigeria presently has about 1Billion MT of gypsum spread over many states. Gypsum are used in the production of Plaster of Paris, Cement and Chalk.  Nigeria's domestic production of gypsum is trending upwards, but still lags behind the rapidly growing demand from the cement industry and plaster of paris processors. It has been estimated that as at 2015 Nigeria has a market potential of cement consumption of over 50 million metric tons per annum, against the present annual production of 28 million metric tons and $6 billion investment. Therefore, the nation’s cement consumption potential of the Nigerian market is huge and hence facilitating a favorable investment in gypsum in the country. The Consumption of gypsum was about 41.6million tons in 2006 and 194million tons in 2010(United States Geological Service)

Uses of Gypsum

Gypsum uses include: manufacture of wallboard, cement, plaster of Paris, soil conditioning, a hardening retarder in Portland cement. Varieties of gypsum known as "satin spar" and "alabaster" are used for a variety of ornamental purposes, however their low hardness limits their durability.

·        Drywall, the finish for walls and ceilings, is made of gypsum (called Gypsum Board).

·        Gypsum is also used as one ingredient in plaster.

·        While not used as often today, gypsum is sometimes added to fertilizers. Gypsum promotes the growth and health of a plant.

·        Some clay courts in tennis are often ‘binded’ by gypsum. In other words, the gypsum helps bind the clay to make the surface faster and dryer.

·        Plaster of Paris is made by heating gypsum. This is used to make surgical splints and casting molds.

·        Gypsum is added to foot creams, shampoos and other hair products (conditioners etc).

·        It can also be used to make honey wine (also called mead). Honey wine is an alcoholic beverage made by fermenting honey and water with yeast. Gypsum is added as another ingredient at times.

·        Gypsum is one component of Portland cement. It prevents flash (fast) setting of concrete.

·        Gypsum is added to tofu to help it coagulate (come together). This makes it a very important source of calcium in the diet of Asians who don’t traditionally use dairy products in their foods.

III.            RAW & AUXILIARY MATERIALS

 

About 1 billion tons of gypsum deposits are spread over a number of states in the country, according to the Nigerian Investment Promotion Council (NIPC). Gypsum is currently found in Yobe, Adamawa, Bayelsa, Anambra, and many other states. Most of the known     important gypsum resources are found in the sedimentary  basin of north-eastern  Nigeria, especially in Yobe, Gombe and Bauchi States. There is an urgent need for detailed technical and economic feasibility   and viability studies to be carried out on all the occurrences as well as detailed geological   mapping of favorable areas

Table 2 Locations of Gypsum Resources in Nigeria

STATE          

LOCATION

Yobe

Damagumzelzama, Fika-FuneGwaluri

Sokoto

Wumo, Mama, Taloka

Adamawa

Guyuk-Gwalura

Borno

Gubio

Benue

Umogidi-Adoka, EdumogaAmoda

Edo

Auchi

Ogun

Abeokuta

Anambra

AdaniIgga

Enugu

Emene, Enugu

 

 

 

 

 

 

 

 

Table3:  Locality,   State, Estimated Reserve       

S/No

Locality

State

Estimated Reserve(tonnes)

1

Fika

Yobe

766,872       

2

Guyuk

Adamawa     

4,660,000

3

Nafada

Gombe

17,992,500

4

Auchi

Edo

3,495,000

5

Sokoto

sokoto

1,893,430

Source: NMCReport

 

 

 


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