The mining industry is growing at a fast-pace, and as mining chemicals play a crucial role in making the entire process a highly productive one – it goes without saying that the global market for mining chemicals is also growing rapidly. In layman’s terms, mining chemicals are specialized chemicals that are used in mining processes such as blasting, drilling, mineral processing and water and waste treatment. Typically, these chemicals are used in the extraction of gold, copper, iron, nickel, cobalt, alumina, and manganese.
Regarded as the backbone of the metallurgy industry, the mining chemical market was valued at $22.2 billion in 2015. And, according to analysts at Technavio, the market is poised to grow in the next few years as well – registering a CAGR of around 8% by 2020. While APAC is one of the largest and fastest growing markets for mining chemicals, these chemicals are also in high demand in North America and Europe.
What makes APAC the largest market for mining chemicals?
In 2015, APAC accounted for more than half – which is around 54% – of the share of the global mining chemicals market. The main reason behind this is that countries in the APAC region not only have a high occurrence of mining operations, but they also have favorable regulatory environments. As a result, several private and foreign players have invested in the region. Additionally, low labor and energy costs, along with easy availability of materials, have made APAC as one of the best markets for the mining chemicals industry.
As hydrocarbon resources are depleting steadily, coal has emerged as an important source of energy production globally. It is a known fact that the coal mining industry is the largest end user of industrial explosives, accounting for around 40% of the global share. Countries like India and China in particular are witnessing immense production of coal. Coal is largely used in the generation of electricity, in the steel industry for the extraction of iron from iron ore, and in the cement industry. Mining chemicals are required primarily for blasting and drilling applications during the extraction of coal. With the increased production of coal, there has been a positive impact on the demand for blasting and drilling chemicals, which, according to analysts at Technavio will continue over the next five years.
Rapid industrialization in the APAC region is yet another reason for the booming mining chemicals market in this part of the world. As investment in most developed countries is nearing saturation, investors are targeting developing countries as their new manufacturing space. Apart from rapid industrialization, APAC is abundant in mineral resources and is also witnessing urbanization – factors that encourage mining activities in this region.
Most of all, mineral processing is a very complex phenomenon that involves various procedures and different chemicals at different stages. The demand for specialized chemicals for specific operations in the mining process is also increasing. As a result, the mining chemicals industry is striving to provide customers with more advanced and complete solutions suited to their requirements.
Looking for a more in-depth understanding of the various uses of mining chemicals?
Order the 2016-2020 Report on Global Mining Chemicals Market
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The 2016-2020 Report on the Global Silica Minerals Mining Market
The 2016 Procurement Market Intelligence Report on the Global Mining Explosives Market
