An appreciation of the differences in ore characteristics and the need to improve mine tailings are driving demand for speciality chemicals in African mining, says growth consultancy Frost & Sullivan chemicals, materials and food research associate Lloyd Rubaba.

He notes that demand for tailor-made speciality chemicals solutions, which improve ore recovery, is increasing, as mining operations are steadily shifting away from general treatment solutions used for all mining commodities.

Rubaba attributes the increased demand to the solutions’ ability to overcome ore treatment challenges peculiar to the specific ore commodity being mined, as well as the specialised chemicals’ improving mining revenues during the current depressed mineral commodities market by improving ore extraction.

Further, the improved ore extraction technologies and processing chemicals, which also extend life-of-mine by addressing orebody deterioration, have also increased demand for speciality chemicals in mature mining nations such as South Africa and Ghana.

The development of more stringent environmental regulations globally has further driven demand in mature African mining markets, owing to the development of special reagents used to improve ore extraction in deteriorating orebodies.

“Environment-friendly mining is on the rise, with many governments worldwide placing more emphasis on sustainable mining practices that do not harm the environment and the communities close to mining projects. As countries become more aware of the need to clean up waste, the market for green chemicals, such as solvent extractants, flocculants and bulk emulsions, will grow,” Rubaba states.

He further highlights that demand for chemicals that improve the quality of tailings dams has increased significantly in Africa, owing to Namibia’s recent mining setbacks caused by erratic water supply.

“Water is a key resource in mining operations. The industry consumes 20% of global water supplies and, as a result, the demand for chemicals that improve tailings quality and allow for the reuse of water in mining processes is increasing.”

Rubaba points out that, while South Africa continues to be one of the most attractive market destinations for mining chemicals companies, markets in Central and West Africa are steadily becoming more attractive.

Explosives and speciality chemicals markets in Central Africa are expected to grow at a compound annual growth rate (CAGR) of 18.5% and 16.2% respectively from 2014 to 2020.

Rubaba notes that north-west African countries, such as Mauritania, Sierra Leone and Liberia, can expect an explosives CAGR of about 16%, which will be driven mainly by new gold and iron-ore mines. However, these markets face significant political risk and are still reeling from the Ebola outbreak, which started last year. “Despite these challenges, the future of mining in West Africa remains positive,” he says.

Goldcentric Ghana can expect subdued explosives and mining chemicals growth, owing to the declining gold price, says Rubaba, who predicts a CAGR of between 3.5% and 5% in the explosives market.

“However, Ghana’s neighbours, such as Mali, Burkino Faso and Mauritania, have received substantial mining investments in recent years,” he notes, pointing out that Mali’s mining industry, in particular, has grown by more than 540% since 1993.

South Africa can also expect moderate growth in its speciality mining chemicals and explosives markets, which Rubaba says will grow at a CAGR of 5.9% and 5.2% respectively from 2014 to 2020. It is predicted that growth will likely stem from improved production from the country’s coal, iron-ore and copper mines.

Meanwhile, Africa’s infrastructure deficit poses a significant threat to mining chemicals companies, as “poor infrastructure increases the cost of doing business in Africa and often increases the risk of transporting sensitive materials, such as explosives and cyanide”, Rubaba explains.

He points out that despite the infrastructure challenges, mining chemicals companies are still eager to take advantage of African mining projects, particularly since about 30 mining projects are scheduled to start production from this year to 2018.

To address the infrastructure deficit, “mining chemicals companies are increasingly setting up mobile modular manufacturing plants closer to mining operations or on site, enabling mining chemicals companies to reduce costs and security risks”, Rubaba concludes.