Global Mining Explosive Market - 2020-2027
The mining explosive market size was worth US$ XX billion in 2018 and is estimated to reach US$ XX billion by 2027, growing at a CAGR of XX % during the forecast period (2020-2027).
Mining explosives are substances that produce a high-intensity shock wave and large volumes of gas when subjected to detonation. These are generally of 2 types based on strength: high explosive (ANFO, TNT, and nitroglycerin) and low explosive(Gunpowder). High explosive is further categorized into primary, secondary and tertiary explosive. These are used to displace the confining rock and extract the ore bodies economically. The explosive is detonated in a controlled manner with the help of boosters, detonating fuse and exploders.
The selection of explosives is generally made based on VOD, strength, sensitivity and geographical conditions. The explosive typically consists of sensitizers, combustible substances, oxidation agents and anti-setting agents. Explosive is also dependent on the type of mining, such as surface mining and underground mining, as underground coal mining only allows the usage of permitted Explosive.
The global mining explosive market growth is driven by the upcoming new coal mining projects and continuous government support towards the mining sector.
Upcoming new coal mining projects are expected to drive the mining explosive market growth
Coal is one of the primary fuels used worldwide for producing energy. According to the World Coal Association report, 2019, coal mining is expected to grow by 225.62 mn ton during 2020-2024, which will also boost the market for permitted explosives used in underground coal mines. Explosive consumption from coal mining is expected to grow by XX Mtpa.
Australia has one of the world's more-advanced coal mining projects, mostly in Queensland, which utilizes only TM2 explosives for underground coal mines. Various upcoming projects include Sojitz Coal Mining and Futura Resources signed an agreement to start production at Futura's new Wilton coal mine in Queensland. The mine and the adjacent Fairhill mine will have an annual output of around 3 Mtpa of met coal. Hence, the rising production of coal globally will also boost the mining explosive market. Moreover, according to the Australia Mining report, 2020, New South Wales has originated the first underground mine explosives facility in the country to encourage further innovation and explosive testing development, aiming to enhance the number of explosives suitable for underground coal mine use while also advancing their safety improvement.
Regulatory guidelines can affect the mining explosive market growth
On the contrary, regulatory obligations towards environmental protection are expected to restrict the market growth. The U.S. and European Commission has framed various regulations such as standard number 1910 imposed by the United States Department of Labor about limiting the use of explosive chemicals used in mining, which will likely restrain the mining explosive market.
COVID-19 Impact Analysis
Amid the pandemic, all the mining activities were paused for several months worldwide, which lead to substantial financial losses to the sector. As the mining explosive market is dependent on mining activities, it also had to face a huge downfall. Furthermore, this resulted in the shutting of various explosive factories. For instance, Premier Explosive Peddakandukuru and Neyveli plant were closed for two months, and the company was operating at about 30% capacities, which lead the company to a considerable loss.
However, after the pandemic, the mining sector recommenced the operations and aims to recover all the losses by 2022. Also, the recovery of the losses will be made by increasing the daily production, requiring more explosive usage. Indian Government has been taking various initiatives such as distributing new 41 coal blocks to private companies. Hence, commencing of new projects in India is forecasted to boost the mining explosive market.
By type, the mining explosive market is classified into ANFO, slurry and emulsion explosives.
The ammonium nitrate fuel oil explosive market is expected to grow at the fastest CAGR during the forecast period (2020-2027)
The increasing demand for ammonium nitrate type explosive is because it is cheaper, provides more safety, it can be shipped and stored after mixing with oil, provides high VOD and can be prepared on the blasting site itself. The most common explosive made from ammonium nitrate is ANFO. For instance, according to the Statista report, 2020, global ammonium nitrate type explosive market value is forecasted to increase to 23.2 billion dollars in 2025.
Moreover, various leading explosive companies have shifted their focus towards the ammonium nitrate market. For instance, the new ammonium plant was opened in 2016 by the joint venture of the Orica and Yara Pilbara in Western Australia, which exports 800,000 tones of ammonia per annum globally.
Asia Pacific region is the largest market for the global mining explosive.
The Asia Pacific holds the largest market for mining explosives globally and is forecasted to continue its dominance in the market as there are various new mining projects started in recent years, which would also boost the demand for mining explosives in the region. Moreover, the continuous support from the government, such as allowing 100% FDI for exploration of minerals, is one of the main drivers for boosting the market. According to the Statista report, 2017, India's explosive wholesale index was 154, which shows a growth of 54% from the year 2007.
The U.S is also one of the highest developing markets globally; according to the Statista report, 2020, the U.S. mining industry production index in 2018 was increased by 123 compared to 2012 it was 100. It also concluded, the total volume of total explosives used in 2018 was 1.72 million tons, which were further classified into permissible explosive- 230 metric tons, other high explosives- 46,400 metric tons and blasting agents and oxidizers- 1,720,000 tons.
Moreover, the Australian Mining Industry is forecasted to deliver the highest revenue of almost $250 billion in export to the Australian economy, which will boost the explosive manufacturing market in the country which to 26390 million U.S. dollars by 2030
The explosive mining market is moderately competitive with the presence of the local players followed by the global companies who contribute to the major share in the market growth. In addition, some of the key players contributing to the growth of the market are Orica, Sasol, Bulk Mining Explosive, Maxam Corp., Chemring Group, Accurate Energetic Systems, Austin Powder, Davey Bickford, Dyno Nobeland Nelson Brothers Inc. The major players are adopting various new strategies to dominate the market, such as launching new products, acquisitions and collaborations, which are contributing to the growth of the mining explosive market globally.
Bulk Mining Explosive
Overview: Bulk Mining Explosive is a division of Omnia group and is a leading supplier and manufacturer of initiating accessories, bulk emulsions and packaged explosives to fulfil the demand of mining, quarrying and construction industries. The company was started in 1984 in South Africa.
Product Portfolio: Bulk Mining Explosive provides a wide range of services such as muck pile profiling, fragmentation analysis, monitoring and also manufactures a variety of mining explosives.
Key Development: In 2021, the company launched U.S. footprints for its explosive and blasting technology. The company has also launched its global online technical services and solutions platform, which will help customers better understand the usage of explosives.
The global mining explosive market report would provide access to an approx: 63 market data table, 53 figures and 240 pages.
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