Analysis of Ore Transportation Infrastructure and Its Effects on Mining Profitability in Kogi State, North Central Nigeria

Transportation infrastructure is a critical determinant of mining profitability in Nigeria, where poor road conditions and absent rail connectivity inflate haulage costs and limit market access for producers. This study analyses the state of ore transportation infrastructure serving mining operations in Kogi State, North Central Nigeria, and quantifies its effect on operational cost structures. A cost-benefit analysis framework was applied to transportation data collected from five mining operations in the Lokoja and Kabba-Bunu districts, including truck fleet maintenance records, fuel consumption logs, transit time data, and infrastructure condition ratings. Road condition surveys were conducted along primary haulage routes using the pavement condition index methodology. Findings reveal that transportation costs constitute an average of 34 percent of total production costs at Kogi mining operations, compared to an industry benchmark of 15 to 20 percent for well-serviced operations. Poor road conditions increase vehicle maintenance costs by 62 percent above baseline and reduce fleet availability by 28 percent. The study models the cost reduction potential of three infrastructure improvement scenarios and estimates that a targeted 150-kilometre road rehabilitation programme could reduce total mining costs at the five operations by an average of 18 percent. Recommendations include a public-private partnership framework for mining road maintenance and inclusion of mining haulage needs in Kogi State infrastructure planning. Keywords: ore transportation, mining profitability, Kogi State, infrastructure, haulage costs.