Nov 8 2010
Research and Markets has announced the addition of Frost & Sullivan's new report "South African Market for Gold Mining Chemicals" to their offering.
Research was carried out on the gold mining chemicals market in South Africa. The study focused on three process chemicals that are used extensively in the gold mining process, namely process and refining chemicals. Process chemicals are further segmented into mercury, lime and cyanide chemical markets. Market dynamics, such as challenges, drivers and restraints were identified for the individual segments as well as the overall market. These factors provided insight into the competitive structure of the industry. Forecasts are included for the various segment products for the period 2009-2015.
This research service titled South African Market for Gold Mining Chemicals provides an analysis of the processing and refining chemicals markets, including a breakdown of cyanide, mercury, lime, sulphur, hydrochloric acid and caustic soda. The service also provides an opportunity analysis across various end-user industries. Frost & Sullivan's expert analysts thoroughly examine the impact that the automotive, investment, jewellery and industrial end-user applications have on the market.
Market Overview
Gold Mining Chemicals to Experience Sustained Demand
Managing fluctuations in product cost, persisting strength of the rand against the US dollar and increasing labour costs are common challenges for all gold mining companies in South Africa. However, for many gold mining chemical suppliers, these challenges are outweighed by strong driving factors. Sustained demand from the automotive and jewellery end-user industries in South Africa has been driving the gold mining chemicals market over the past five years, especially during the current economic crisis. Current and planned development activity within the gold mining industry in South Africa, including most of Africa, has set the course for continued supply of gold mining chemicals. Some gold mining chemical suppliers have already made their footprint, while others look forward to a positive future.
Strict compliance with environmental legislation and safety standards in mining and construction industries benefits chemical suppliers with high quality standards, notes the analyst of this research. The positive outlook of suppliers shows how well the market is performing despite the economic crisis. While some suppliers have witnessed a decline in sales due to economic pressures, many look forward to renewed growth and revenues in the industry. Despite the global economic crisis, the process of development and related investments in the South African gold mining industry have been steadily maintained. Investments are focused on sourcing new mineral resources and developing the gold ore mined locally. With many government-funded projects in the pipeline, the demand for gold mining chemicals is certain. Some participants from the chemicals industry have also started supplying to companies in sub-Saharan Africa to expand their geographic focus. The global demand for gold has risen due to increasing economic growth in the Asian and Indian markets. Although local gold production is declining, large amounts of reserves in the platinum, uranium and coal sectors are set to continue driving the demand for mining and mineral chemicals. Subsequent expansion of gold mining projects throughout Africa (in particular, West Africa) is expected to boost the demand for chemicals from local companies.
Total Solutions and One-stop Shop Approach to Gain Appeal
Despite the projected persistence in demand for gold mining chemicals, there are several challenges facing the gold mining industry, which exert pressure on companies spending capacities and thereby reduce their ability to purchase chemicals. Some of these challenges include intensifying operating cost pressures, growing local energy supply crisis and lack of skills, which leads to less effective application of chemicals in mining. Mining companies are concerned about the impact that the energy supply crisis will have on their operating costs, since they cannot afford to waste money on unnecessary spending, explains the analyst. This is coupled with pressure from labour unions and industrial strike actions which reduce productivity, forcing mining companies into difficult financial positions.
Partnering with suppliers for non-core activities is crucial for reducing costs and ensuring efficiency of mining operations. Suppliers are extending their services to provide both customised product and technical expertise for its application to their customers. The demand for chemicals that provide total solutions allow mining companies to benefit from tailor-made solutions, concludes the analyst. A one stop shop simplifies the procurement process and allows mining companies to lower expenses.