Mining Chemicals forecasts for 2011 & 2016

Nov. 3, 2007 - PRLog -- US demand to surpass $2 billion by 2011

US demand for mining chemicals is projected to surpass $2 billion in 2011, aided by improved fundamentals in the US mining industry and a growing emphasis on the use of chemicals to improve operating efficiency at mines and mineral processing facilities. High commodity prices and strong global demand have greatly improved the outlook for the US mining industry. High natural gas and petroleum prices are renewing interest in coal as an energy source. In metals and building-related materials, high prices and strong global demand are improving prospects for US producers as imports are diverted to fast growing Asian consumers. Higher prices and improved profitability are providing investment impetus, with US companies  considering capacity expansions, even at sites that in the past were not considered economically feasible.

Explosives to remain the leading mining chemical

Explosives, which accounted for more than half of total mining chemical demand in 2006, will continue to be the single largest product category, based mainly on their extensive use in coal and aggregate production. Demand for explosives will benefit from efforts to improve blast efficiency and decrease overall processing costs. Growth in mountaintop mining will boost explosives requirements in Eastern markets, although this will be offset to some extent by faster growth in Western mining regions, which generally are less explosives intensive. Demand for other chemicals will benefit from declining US ore quality, which increases the importance of processing technology. Lower grade ores usually require greater levels of beneficiation, a process that generally involves chemicals to some degree. Environmental and technical issues will  encourage a shift in product mix to higher value chemicals in some cases. Nevertheless, volume demand will be restrained by continued efforts to reduce overall chemical consumption, especially through chemical reuse and recycling.

Large coal market offers best opportunities

Coal production was the largest market for mining chemicals in 2006, based primarily on large explosives requirements, and will provide the best growth  opportunities based on continued healthy demand for coal in electricity generation. Other mining applications -- particularly precious metals, copper and iron ore -- generally use a wider variety of chemicals in addition to explosives. In these markets, growth will be aided by declining US ore quality and improving domestic mine production.

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