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Legislation, Environmental Concerns and Demand for Commodities Define the Market for Mineral & Mining Chemicals in South Africa Finds Frost & Sullivan - As the South African mineral and mining industry has expanded in recent years, the related mineral and mining chemicals markets have enjoyed steady growth
Legislation, Environmental Concerns and Demand for Commodities Define the Market for Mineral & Mining Chemicals in South Africa Finds Frost & Sullivan

 

NewswireToday - /newswire/ - Cape Town, South Africa, 2009/04/06 - As the South African mineral and mining industry has expanded in recent years, the related mineral and mining chemicals markets have enjoyed steady growth.

   
 
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However, the global economic downturn has had a severe impact on mining activity, and this has in turn decreased the demand for chemicals in this sector.

New analysis from Frost & Sullivan (chemicals.frost.com), South Africa Mineral and Mining Chemical Markets, finds that the market earned revenues of $592.7 million in 2008 and estimates this to reach $901.7 million in 2014. Explosives will continue to be the dominant product segment, while processing and water treatment chemicals will grow at a slower rate.

If you are interested in a virtual brochure, which provides a brief synopsis of the research and a table of contents, then send an email to Patrick Cairns, Corporate Communications, at patrick.cairns[.]frost.com, with your full name, company name, title, telephone number, company email address, company website, city, state and country. Upon receipt of the above information, a brief brochure will be sent to you by email.

"The demand for explosives is set to continue driving the mineral and mining chemicals market in South Africa," notes Frost & Sullivan Programme Manager, Mani James. "Legislation requires mining companies to have safer processes embedded in their operating systems, boosting the uptake of mineral and mining chemicals."

Bulk explosives and detonators are set to promote growth in the explosives market. Growth in these product segments is due to a shift in the use of less safe packaged explosives. The use of bulk explosives in open cast mining activities such as coal mining activities will support market expansion.

However, as mines look to save costs they will place pressure on manufacturers to lower their prices. The decline in demand for commodities will also have a direct impact on the demand for chemicals, forcing suppliers to compete more aggressively for market share.

"Chemical suppliers to mining companies tend to review contracts more regularly because of fluctuating prices," explains James. "It is imperative that chemical suppliers adopt flexible and competitive pricing strategies to continue as preferred suppliers to mines."

Moreover, due to the maturity of the market, the level of competition is high. Competition among suppliers is further heightened by the fact that customers are price sensitive and not particularly brand loyal.

Enhancing awareness among companies about environmental issues is a major factor that will influence the adoption of environmentally safe chemicals. The role of chemical suppliers in the safety processes of their customers is becoming increasingly important. Chemical suppliers can facilitate market share growth by assisting companies in complying with environmental regulations.

South Africa Mineral and Mining Chemical Markets is part of the Chemicals & Materials Growth Partnership Service programme, which also includes research in the following markets: Strategic Opportunities for the Biofuel Industry in Key Sub-Saharan African Countries and, Southern African Markets for Biofuel Feedstocks. All research services included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants. Interviews with the press are available.

Frost & Sullivan, the Growth Partnership Company, enables clients to accelerate growth and achieve best in class positions in growth, innovation and leadership. The company's Growth Partnership Service provides the CEO and the CEO's Growth Team with disciplined research and best practice models to drive the generation, evaluation and implementation of powerful growth strategies. Frost & Sullivan leverages over 45 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from 31 offices on six continents.

South Africa Mineral and Mining Chemical Markets / M31C

 
 
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Legislation, Environmental Concerns and Demand for Commodities Define the Market for Mineral & Mining Chemicals in South Africa Finds Frost & Sullivan

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Publisher Contact: Patrick Cairns 
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