Explosives and Chemicals Market African Chemicals Market Profits from Mining Boom
As Sub-Saharan Africa becomes a global hotspot for mining, local markets for chemicals and explosives boom. This promising development even encourages new innovation, markets analysts believe.
The rapid growth of the mining industry, especially in Central Africa, is being mirrored in the market for mining explosives and chemicals across Sub-Saharan Africa. Almost 65 percent of major and minor mining firms in the region indicated that they would increase expenditure on explosives and chemicals in 2015, thereby stimulating a tepid market environment.
New analysis data from Frost & Sullivan indicates that the US $ 1.11 billion mining explosives market is expected to reach US $ 1.67 billion in 2020. The mining specialty chemicals market too is anticipated to grow from 127,650 tonnes in 2014 to 203,480 tonnes in 2020.
Political Stability in Congo Boost Mining
The mining industry has been propelled by relative political stability in previously volatile regions, such as the Democratic Republic of the Congo (DRC) and northern parts of Zambia, as well as the rising demand for minerals from emerging markets. While this naturally benefits the auxiliary markets of mining chemicals and explosives, the depreciating quality of ore and the need to protect the environment provides a significant boost as well.
“Beneficiation of mineral resources – separating the usable parts of the ore from the unusable – has become a key focus in Africa,” saidFrost & Sullivan Chemicals and Materials Research Analyst Lloyd Rubaba. “Countries like South Africa and the DRC are proposing instruments to further encourage the processing of minerals locally, giving a leg up to the domestic chemicals and explosives market.”