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Energy and Mining Sectors Drive Demand for Water and Wastewater Treatment Equipment in South Africa Finds Frost & Sullivan - Increased demand for energy supplies and the need for regulatory compliance by mining companies are driving the water and wastewater treatment equipment market in South Africa
Energy and Mining Sectors Drive Demand for Water and Wastewater Treatment Equipment in South Africa Finds Frost & Sullivan

 

NewswireToday - /newswire/ - Cape Town, South Africa, 2010/08/30 - Increased demand for energy supplies and the need for regulatory compliance by mining companies are driving the water and wastewater treatment equipment market in South Africa.

   
 
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New analysis from Frost & Sullivan (environmental.frost.com) South African Water and Wastewater Treatment in the Mining and Energy Sectors, finds that the markets were valued at $17.0 million in 2009 and estimates them to reach $25.1 million in 2015. The following market sectors are covered in this research service: coal mining, gold mining, platinum mining, copper mining and energy.

If you are interested in more information on this study, please 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.

"The electricity utility Eskom's expansion programme and enhanced legislative enforcement to ensure zero liquid effluent disposal (ZLED) by Eskom and mining companies are key factors in the growth of this market," notes Frost & Sullivan Research Analyst Derrick Chikanga. "Currently, Eskom is undertaking an expansion initiative that will require additional investment in both water and wastewater treatment equipment."

South Africa's energy sector is a large consumer of freshwater, accounting for approximately 1.5 to 2.0 per cent of the country's freshwater consumption annually. Both the mining and energy sectors have adopted a ZLED policy in which all reasonable steps are taken to prevent pollution of water resources. This is set to boost investments in the relevant water and wastewater treatment technologies.

However, the lack of financial resources to purchase the required equipment remains a major obstacle to market development.

"The most advanced water and wastewater treatment technologies, like reverse osmosis (RO), are very expensive and cannot be afforded by many of the smaller mining companies in South Africa," explains Chikanga. "Most mining companies lack the necessary financial resources to acquire advanced treatment equipment and instead opt for the cheaper options such as lime treatment to reduce acidity."

Despite numerous challenges posed due to the lack of financial resources, the market still presents several opportunities for growth.

Equipment suppliers need to supply products within the budgets of most mining end users to complement the technology types currently on offer. This will enable companies to capture both the low- and high-budget end-users.

A key strategy for competitive success will be the provision of value added technologies and services.

"The provision of value-added technologies that are reliable is an important element in this market," concludes Chikanga. "Mining and energy sectors are continuously changing and require high levels of water recovery. This explains why RO technologies are gaining popularity amongst end users."

South African Water and Wastewater Treatment in the Mining and Energy Sectors is part of the Environmental Growth Partnership Services, which also includes research in the following markets: An Overview of sub-Saharan Africa's Water Markets, Procurement Processes and Outsourcing in the South African Water and Wastewater Market, South African Desalination Plant Markets, South and East African Water and Wastewater Treatment Equipment Markets and, South African Industrial Water and Wastewater Treatment Equipment Market. All research services included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants.

About Frost & Sullivan
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 40 offices on six continents.

South African Water and Wastewater Treatment in the Mining and Energy Sectors / M4E0

 
 
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Energy and Mining Sectors Drive Demand for Water and Wastewater Treatment Equipment in South Africa Finds Frost & Sullivan

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