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Markets and Value Chains: Practical Pathways for ASMMMON Members to Capture More Value

One of the most immediate levers ASMMMON can pull is to create market structures and processes that increase producer capture of value. Historically, Nigerian miners have exported raw ore or semi-processed materials, ceding downstream value to foreign processors. New policy direction from the Federal Government—which signals licence preference for companies that process locally—creates a commercial imperative for miners to either vertically integrate or organise into clusters that can justify local processing investments. Reuters

Concrete market strategies ASMMMON should deploy:
• Aggregation hubs and grading centres. Small-scale miners rarely achieve the volumes or consistent grades required by processors. Aggregation hubs (regional collection and assaying centres) allow ASMMMON to standardise quality and aggregate volumes so members can access processors or export markets at better prices. The Ministry’s commodity production breakdown (2023–2024) shows limestone dominates by weight, indicating immediate utility for local cement and construction value chains. msmd.gov.ng
• Quality assurance and certification. International buyers demand traceability, provenance, and grades. Offering low-cost assaying and certification — either through partnerships or a pooled lab facility — will materially increase the prices members obtain. ASMMMON should negotiate preferential terms with accredited laboratories and quality-assurance firms.
• Offtake and blended financing deals. ASMMMON can negotiate master off-take agreements with domestic processors (cement works, steel plants, industrial minerals processors) and structure blended finance (member equity + concessional debt + technical assistance grants) to launch modest beneficiation plants. These can be regional and commodity specific (e.g., a limestone processing/packing hub, a barite wash plant for oilfield buyers).
• Market intelligence dissemination. The association should maintain an industry briefing (monthly) covering commodity price trends, import demand, and regulatory shifts. Access to up-to-date market intelligence will materially improve negotiation outcomes for individual members.

Why these matter: aggregation and certification directly raise the average price per ton miners receive and open access to higher-value domestic buyers, while compliance and traceability protect legal export channels and avoid revenue loss linked to smuggling or informal sales.

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