A report from Frost & Sullivan reveals trends in the mining industry are driving chemical market revenues towards $2.9bn by 2025
The minerals and METS sector supported an estimated 1,131,450 full-time equivalent jobs in Australia in 2019/20 (Credit: Wikimedia Commons/ Alexandra Pugachevsky)
Opportunities for growth in the global mining chemicals market are “looking promising” over the next six years, according to analysts.
While chemical manufacturers are developing digital technologies to improve efficiencies for mining customers, a new report from business consultancy firm Frost & Sullivan says end-users too are “embracing” new chemistry formulations and compositions to boost their processing techniques.
The Analysis of Global Mining Chemicals Market, Forecast to 2025 report reveals the industry is expected to have a healthy compound annual growth rate (CAGR) of 6.7% between 2018 and 2025.
It highlights how rising demand for ferrous metals, industrial minerals, and fuel ore extraction will drive market revenues towards $2.9bn by 2025.
Ganesh Dabholkar, senior research analyst of chemicals, materials and nutrition at Frost & Sullivan, said: “Major mining companies have been keen to deploy tailor-made chemicals, green mining solutions, and innovative mineral extraction technologies that are capable of extracting more mineral content from low-grade mineral ores and waste products.
“In addition, some companies have been instrumental in developing anti-scalants that meet the challenges of harsh ore processing conditions.
“Such factors are expected to drive the demand for high-end mineral processing products, thereby opening new avenues for market growth.”
Health and safety standards boost demand in the mining chemicals market
Mining chemicals play a vital role in enhancing the productivity and efficiency of extractive processes such as the recovery and extraction of minerals and target materials from ore.
The key mining chemicals used worldwide are grinding aids, flocculants, mining collectors, solvent extractants, and frothers.
Ore processing of ferrous metals, mineral fuels, industrial minerals, and non-ferrous metals contributes significantly to mining chemical consumption across the globe.
With stringent environmental and health policies in the mining sector, demand for sustainable mining chemicals and more efficient use of water has become paramount.
To succeed in a highly-consolidated and competitive environment, with major chemical companies such as Solvay, BASF, Clariant and AECI, Dabholkar recommends participants provide innovative technological answers to optimise product performance.
The report notes three further opportunities that companies should be looking to implement to enhance their growth.
- Develop an extremely efficient supply chain at regional and global levels through partnerships and local presence.
- Expand organically through production capacity and portfolio expansion and inorganically through the acquisition of companies with niche product portfolios.
- Build long-term pricing contracts with raw material suppliers to effectively manage raw material price fluctuations for sustainable profits.
Despite the cause for optimism, Dabholkar cautioned that certain mining trends could have a negative impact on the growth of the industry.
“Favourable fresh mine deposit locations are becoming increasingly scarce, especially those located near existing mines which have been developed to avail the benefits of either an established permanent power infrastructure to service the mine or develop a new one with high geographic feasibility,” he said.
“This trend is dampening mining business attractiveness and impacting mining activities, as well as chemical demand growth.”