The Mining Explosives Market in South Africa for Coal, Iron Ore, Gold and PGMs, Forecast to 2020

Cost Containment Drives Product Innovation
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Published: 19 Jan 2017

The South African mining explosives market for coal, iron ore, PGMs, and gold was worth $530.7 million in 2015 and its growth will be limited (CAGR of 1.2%) over the next five years. This is due to the global oversupply of metals and minerals and low commodity prices that are hindering the growth of explosives in the local mining sector. Mining of major commodities is expected to gradually regain momentum, as global demand and prices slowly recover, although this falls outside the current forecast period. Worth $223.8 million in 2015, the bulk emulsion explosives segment is expected to reach $238.6 million by 2020 at a CAGR of 1.3%. In comparison, the packaged explosives segment is expected to grow from $149.3 million in 2015 to $158.2 million by 2020 at a CAGR of 1.2%, while initiating systems will expand from $157.5 million in 2015 to $167.6 million by 2020 at a CAGR of 1.2%. The South African mining explosives market is a very competitive and price-sensitive market. Weak global demand for commodities, combined with low commodity prices, has forced mining companies to take a closer look at reducing variable costs to ensure the viability of mining operations. The top three market participants (AEL Mining Services, BME South Africa, and Sasol Explosives) had a combined revenue market share of over 82.0% in 2015. Major contract gains or losses periodically shift the market shares between the top three competitors, but ultimately these competitors dominate the market. With slow, stagnant growth in mining production and in both green and brownfield projects, competitor growth is dependent on the status of these contracts. Geographic scope: South Africa Product scope: Bulk emulsion explosives, packaged explosives, initiating systems Application scope: Coal, iron ore, gold, and platinum group metals Study period: 2013 to 2020 Key questions answered include: • At what rate is the South African mining explosives market growing or declining and are growth changes expected during the forecast period? • What product and technology trends are evident in the local mining explosives market and how does it affect surface and underground mining activities? • How does underground and surface mining impact the use of explosives? • Which product segments (bulk explosives, cartridges, and initiating systems/devices) and major commodities (coal, iron ore, gold, and PGMs) contribute the most to the mining explosives market? Is this likely to change during the forecast period (2016 to 2020)? • What does the mining explosives market’s competitive landscape look like? Who are the important market competitors and what products or services do they offer? • Considering weak global commodity prices and their impact on the local mining industry, what are the ramifications for the South African mining explosives market in terms of volumes sold and competitive strategies employed? Are there growth opportunities? Key target audience: • Current market participants • Potential new entrants • Commodity traders • Potential investors • Financial institutions



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