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Growth of Uranium Mining Industry Brightens Prospects for Mining Chemicals Manufacturers States Frost & Sullivan - Fixed contracts will safeguard the interests of uranium mining chemicals producers in South Africa, Namibia and Malawi
Growth of Uranium Mining Industry Brightens Prospects for Mining Chemicals Manufacturers States Frost & Sullivan

 

NewswireToday - /newswire/ - Cape Town, South Africa, 2012/10/24 - Fixed contracts will safeguard the interests of uranium mining chemicals producers in South Africa, Namibia and Malawi.

   
 
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An increase in uranium exploration projects will escalate the demand for related mining chemicals in South Africa, Namibia and Malawi. A heightened focus on alternative energy sources, specifically nuclear energy which uses uranium, will also have a positive ripple effect on the uptake of uranium mining chemicals.

Attempts to explore uranium deposits and expand uranium capacity, as well as maximise the grade of uranium extracted, will boost market prospects in South Africa. Namibia's plans to explore, develop, and process uranium ore will further accelerate the demand for chemicals used in uranium mining.

"The supply chain of major uranium mining countries is largely driven by the demand for nuclear energy," noted Frost & Sullivan's Chemiclas Materials & Food Research Analyst Bhavisha Jaga. "Growth in the uranium mining chemical industry will continue to climb, primarily driven by the need to replace environmentally unfriendly energy sources with cleaner, more sustainable energy sources."

It is estimated that 22% of new electricity generation in South Africa will be nuclear by 2030, which will stimulate the demand for uranium being mined currently and in the near future. This trend will increase the use of chemicals used for uranium mining.

Even as the market develops, one of the most potent threats to its continued progress will be the lack of dependable power supply.

"Frequent power outages are likely to lower mining capacity operations, resulting in higher mineral and metal prices," explained Jaga. "The lack of electricity is, moreover, expected to discourage potential international investors - a trend which will have a detrimental effect on the mining industry and, by extension, on the mining chemicals industry as well."

To maximise market potential, a host of strategies will need to be adopted. These range from enhanced R&D in the extraction of uranium, tighter monitoring of mining operations and greater investments in new advanced mining chemical solutions.

"Fluctuations in uranium prices affect the continuous supply of mining chemicals to the uranium mines," concluded Jaga. "To avoid the bull-whip effect of increased costs in the supply chain, fixed contracts for the supply of mining chemicals between the uranium mining chemical procurer and mining chemical producer and distributor must be set."

If you are interested in more information on this study, please send an email with your contact details to Samantha James, Corporate Communications, at samantha.james[.]frost.com.

Chemical Supply Chain of Major Uranium Mining Countries is part of the Chemicals & Materials Growth Partnership Service programme, which also includes research in the following markets: Southern African Market for Green Materials in Construction, Sub-Saharan Africa Mining and Oilfield Water Treatment Chemicals Market and South African Market for Bio-renewable Chemicals. All research included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants.

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Chemical Supply Chain of Major Uranium Mining Countries / M803-39

 
 
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Growth of Uranium Mining Industry Brightens Prospects for Mining Chemicals Manufacturers States Frost & Sullivan

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