The Global Market for Mining Chemicals is Projected to Reach US$32.5 Billion by 2020
Depletion of High-Grade Deposits &
the Need for Advanced Chemicals Drive the Market for Mining Chemicals,
According to a New Report by Global Industry Analysts, Inc.
GIA announces the release of a comprehensive global
report on Mining Chemicals. The
global market for Mining Chemicals is projected to reach US$32.5 billion by 2020,
driven by the growing demand for specialty chemical formulations engineered to
address the issue of depleting high-grade ore deposits worldwide.
Mining
chemicals play a vital role in enhancing the productivity and efficiency of
mining processes. Depleting reserves of high grade mineral deposits is leading
to exploitation of deeper lying deposits involving complex extraction processes
and use of advanced mining chemicals to aid in the extraction and processing of
low quality ores. Low quality ore deposits which are hard to extract are therefore
creating a strong demand for superior chemical solutions. Varying surface
landscape of mining is making a one size fits all strategy less relevant in the
market. Mine specific chemical solutions will rise in importance in the coming
years, as each mining operation even within a given ore type requires unique
chemicals. Ore deposits in different mines require different treatment solutions.
Custom mining chemicals with custom blends for individual mines will experience
the highest gains in the coming years.
Against
a backdrop of falling commodity prices, austerity in investments in the mining
industry, and rising cost of production, the emphasis on mining productivity is
increasing. High energy costs associated
with deeper mining and processing methods is necessitating the need for high
quality, technologically advanced mining chemicals. The need to enhance
metal recovery from mining operations is assuming critical importance and is therefore
pushing demand for specialized chemicals. Manufacturers are focusing on the development
of chemicals which are safer and environmentally friendly. Growing
environmental concerns and the pressure on mine operators to reduce their
carbon footprint will drive demand for green chemicals. Eco-friendly mining
chemicals also help mining companies reduce compliance costs associated with
environmental remediation. With the trend towards low-carbon production of
minerals poised to grow stronger in the future, R&D investments on
eco-friendly chemicals are expected to intensify.
Explosives & Drilling Chemicals represents the
largest as well as the fastest growing application area for mining chemicals. Industrialization
and high prices of alternative energy sources are driving the demand for
thermal coal, which in turn is bolstering demand for chemicals used in the mine
preparation stage. Countries in the Pacific Rim and Latin America, where
penetration levels are low despite rich metal and coal reserves, offer significant
opportunities for the growth of explosives formulations.
As
stated by the new market research report on Mining Chemicals, Asia-Pacific represents
the single largest and the fastest growing regional market with a CAGR of 6.5%
over the analysis period. China in particular is expected to corner a lion’s
share of the global market supported by rapid urbanization and rising standards
of living. Sheltering some of the largest mines in the world, developing
regions of Latin America, Africa, Australia, Russia and Asia are expected to
emerge as leaders in the global mining sector in the upcoming years.
Major players covered in the report include Air
Products and Chemicals Inc., AECI Limited, BASF SE, Cheminova A/S, Dyno Nobel
Inc., Orica Limited, Nalco Company, Orica Limited, Quaker Chemical Corporation,
SNF FloMin Inc., Cytec Industries Inc. and Cheminova A/S among others.
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