MINING CHEMICALS MARKET ANALYSIS

Global mining chemicals market was valued at US$ 32.69 Billion in 2022 in terms of revenue, exhibiting a CAGR of 5.7% during the forecast period (2023 to 2030).

Global Mining Chemicals Market: Growth Drivers

Growing mining operations in Mexico and Canada

Canada leads the globe in mining activities and is among the top five producers of 14 key metals and minerals globally. The value of mining projects planned and in development in Canada from 2020 to 2030 increased somewhat, year over year, by USD 8 billion in 2020. The majority of mining was done in Ontario. Additionally, for Instance, in March 31, 2020, there were about 252,876 operational mining sites in Canada. There are presently more than 200 mineral exploration projects under progress in Canada.

Numerous large mining companies are seeking exposure in Canada, and the nation is developing sophisticated procedures with feasibility assessments for capital expansion. The Canada government is also starting a number of efforts to persuade more investors to look into the untapped mineral wealth of the nation. The Canada Minerals and Metals Plan (CMMP), a strategic plan for the Canada mining sector to retain its position as a worldwide leader in mining, was also launched by the federal, provincial, and territory governments of Canada. This program is driving the need for mining chemicals.

Figure 1. Global Mining Chemicals Market Value Share (%), By Region, 2022

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Specialty chemicals are increasingly used in mining processes

Almost every stage of the mining process makes use of specialty chemicals. These compounds are employed to streamline the extremely complicated process of mining. With changes in production methods, such as the switch from tunneling to open-pit mining, the mining industry is now able to mine ores with decreasing grades while paying less overall. Additionally, specialty chemicals are employed in processes such as smelting, refining, manufacturing, and commodity trading in later stages of the production chain. Additionally, governments are taking steps to boost mining activities in their individual nations as well as in quickly developing regions like China, Africa, and Latin America. This is anticipated to increase the use of mining chemicals throughout the anticipated period.  For instance, in December 2020,  Between December 16, 2020, AkzoNobel reacquired 462,075 of its common shares.  With the sale of the Specialty Chemicals Company, a total of EUR 6.5 billion was distributed to shareholders, which completes a EUR 2.5 billion recovery program that was announced on February 13, 2019.

Global Mining Chemicals Market: Restraints

High logistics costs

The competition in the worldwide market is strong. Pricing a product is therefore quite important. The price of mining chemicals can be determined in large part by logistics. 20% or more or the total cost of any mining chemical goes into the logistics expenditure. Additionally, the cost of international shipping is consistently high in virtually all of the world's nations, which has a negative impact on the market. The logistic costs and transportation options that are most likely to offer the best economies of scale, the best goods, and on-time delivery to clients or consumers must be continuously assessed by manufacturers or suppliers. Supplying mining chemicals to isolated and underdeveloped areas comes at a considerable logistical expense. Additionally, occasionally it is difficult to carry a few mining chemicals by sea, which raises the cost of logistics. Depending on the accessibility of transportation infrastructure, the cost of logistics varies among nations. Thus, the market under study is constrained by the high logistical cost for mining chemicals.

Global Mining Chemicals Market: Market Trends

One of the major market trends is an increase in distribution agreements among major manufacturers for the purpose of extending the supply chain process. For instance, BASF and Quadra Chemicals Ltd. agreed into an exclusive arrangement in May 2020 to showcase BASF's portfolio of mining solutions products in Canada and Alaska. This partnership aims to streamline the effective delivery of mining chemicals to both present and prospective clients. Leading manufacturers are releasing flocculants chemicals for treating wastewater as a result of the expanding trend of wastewater recycling. The requirement for wastewater treatment is being driven by both rising environmental concerns and increasing water pollution, which will further drive the market growth for global mining chemicals over the forecast period.

Figure 2. Global Mining Chemicals Market Value Share (%), By Product Type, 2022

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Global Mining Chemicals Market- Impact of Coronavirus (Covid-19) Pandemic

As the world moves into lockdown to halt the transmission of the COVID-19 virus, the uncertainty and constraints are hindering Global Mining Chemical markets. Countries, such as China, Italy, Australia, the United Kingdom, Canada, and the United States, are the most affected. Thus, this may impact the global mining Chemical Market.

The ongoing spread and different responses to the COVID-19 are predicted to delay the existing mining projects. The pandemic’s effect on the mining sector may take an extended period. For example, in Italy, one of the worst affected countries outside of China, the national lockdown delayed various ongoing mining projects in the country. Alta Zinc suspended the manufacture of its flagship project, the Orno Mine Project, in the Lombardy region of Northern Italy. Due to COVID-19-related regulations, major mining companies, such as Rio Tinto and Anglo American, declared plans to scale back or close their operations. Due to the Peru government's proclamation of a 15-day quarantine to restrict the spread of COVID-19, Anglo American is temporarily demobilizing the majority of its extensive construction team at its Qullaveco copper mine in Peru. Hence, due to the lockdown in various countries, the consumption of mining chemicals is expected to decrease during 2020, which is likely to impact the market studied.

Global Mining Chemicals Market: Market Segmentation

Asia Pacific dominated the global Mining chemicals market in 2022, accounting for 48.3% share, followed by North America and Europe, respectively.

Global Mining Chemicals Market: By Product Type

On the basis of product type, in 2022, the grinding aids segment hasaccounted for the largest market share of 27.4% in terms of value, followed by the collectors and flocculants segments respectively.

Global Mining Chemicals Market: Key Developments

• In June 2020, FMC Corporation planned to invest more than USD 50 million, over the next three years, in capital improvement projects, including the modernization of a greenhouse and research laboratory at the company's Global Research and Development headquarters in United States.
• In February 2023, AECI unveiled its water treatment program to reuse water, reduce its carbon footprint, and promote sustainability. AECI Water uses desalination methods to treat and reuse fissure water at a platinum mine in North West. Process water is treated and reused at a deep-level gold mine in the North West using patented chemical techniques. This treated processed water is used in high-temperature cooling systems to maintain asset integrity.
• In January 2023, according to local officials, the Germany-based chemical company, BASF and the France-based mining company, Eramet are finalizing a USD 2.60 billion agreement to process nickel in Indonesia. The report coincides with Indonesia's efforts to attract international investments in its resources for Electric Vehicle (EV) batteries.
• In July 2020, Arkema completed the acquisition of ArrMaz, a global leader in specialty surfactants for the crop nutrition, mining, and infrastructure markets. ArrMaz has around USD 290 million of sales from North America, South America, Asia, and Middle East and Africa.

Global Mining Chemicals Market: Key Companies

The Major player’s Functioning in the global mining chemicals market include Ashland Inc., BASF SE, The Dow Chemical Company, Chevron Phillips Chemicals Company LP, Clariant AG, Cytec Industries, Nalco Company, Air Products and Chemicals, Inc., and AkzoNobel Performance Additives.

*Definition: Mining chemicals are widely used across mining industries for various process such as wastewater treatment, minerals processes, and drilling water. They are used to extract metals such as copper, platinum, and gold. Mining chemicals are broadly classified into collectors, frothers, grinding aids, flocculants, and solvent extract ants.