Technical and Economic Evaluation of Secondary Aluminium Smelting from Scrap in South West Nigeria

This study presents a technical and economic evaluation of secondary aluminium smelting from locally collected scrap in the South West geopolitical zone of Nigeria, assessing the viability of establishing a medium-scale rotary furnace smelting operation. Nigeria imports a large proportion of its aluminium requirements despite the availability of substantial aluminium scrap from end-of-life vehicles, packaging, and construction waste, and the secondary aluminium route offers a significantly lower energy consumption pathway than primary smelting from bauxite. Technical evaluation covers scrap collection and sorting infrastructure, melt recovery rates from different scrap categories, energy requirements for rotary furnace melting, and achievable alloy specifications. Economic analysis employs capital cost estimation, operating cost modelling, and discounted cash flow analysis for a 5,000 tonne per year secondary smelter scenario based in Ibadan, Oyo State. Market assessment examines aluminium demand from the automotive components and household goods manufacturing sectors in South West Nigeria. Findings indicate a technically viable operation with a projected melt recovery of 88 percent for clean scrap, declining to 72 percent for mixed domestic scrap. Economic modelling yields a positive net present value at a 15 percent discount rate with a payback period of 4.2 years at full capacity utilisation. The study identifies scrap sorting quality and LPG energy cost as the primary economic risk variables. Keywords: secondary aluminium smelting, scrap, economic evaluation, South West Nigeria, rotary furnace.