Mining Explosives Market Research Report - Forecast to 2030

Mining Explosives Market Research Report: By Type (ANFO, Ammonium Nitrate Explosives, Bulk Emulsion Explosives, Cartridge Emulsion Explosives, Others), By Application (Coal Mining, Metal Mining, Quarry & Non-Metal Mining) - Forecast till 2030

ID: MRFR/CnM/5703-CR | February 2021 | Region: Global | 174 pages

Mining Explosives Market- Overview

Mining Explosives Market is expected to rise and touch a USD 12,729.4 Million revenue appraisal by 2030, with a 2% CAGR during the forecast period.

Orica makes explosives. A leader in mining and exporting to many countries, this company has manufacturing facilities in regions where the company is active in mining.

COVID 19 Analysis

Key industries such as the mining and steel industries, however, are expected to be exempt from the COVID-19 pandemic because they are now experiencing losses from supporting companies in these industries. In countries like India, these exceptions have been made during times of emergency lockdown when they are recognized as essential. There are some industries exempted from the shutdown, and the organizations responsible for regulating them are monitoring them. Ecological management protocols of the mining industry, such as extraction of raw materials, transportation, and construction, must be monitored and directed by organizations responsible for moderated and regulated ecological impacts. With the COVID 19 pandemic playing out, environmental institutions are loosening on their regulatory oversight of projects aimed at the mining industry and markets related to it. To support the growth trajectory of the market, governments are also introducing several applications and far-reaching changes. In addition to this, the COVID-19 lockdown limitations in Southern Africa have spotlighted the mines' supply security, particularly for key inputs like explosives and blasting services, where demand is high in the manufacturing and construction sectors. A lockdown against Coronavirus is speeding up the move towards digitalization and automation in the Australian mining industry in a way that will lower costs faster, allowing additional tasks to be completed with fewer people in smaller, more efficient mines.

Competitive Landscape

Featured on the page are mining explosives companies such as IDL Explosives Limited (India), IDEAL Industrial Explosives Ltd. (India), Orica Limited (Australia), Bulk Mining Explosives (Pty) Ltd. (South Africa), Austin Powder GmbH (Austria), EPC Group (France), Yara (Norway), Explosia, Inc. (Czech Republic), Pakistan Ordnance Factory (Pakistan), NOF Corporation (Japan), ANHUI JIANGNAN CHEMICAL INDUSTRY CO., LTD (China), China Poly Group Corporation (China), Enaex S.A. (Chile), Eurenco SA (France), Incitec Pivot Ltd. (Australia), Hanwa Corp. (Republic of Korea), MAXAMCorp Holding, S.L. (Spain), Solar Industries India Ltd. (India), NITROERG SA (Poland), TITANOBEL (France), and Forcit Group (Finland).

Market Dynamics:

Growing Demand from the Coal Industry

An important factor driving coal industry change is technology. Rapid industrialization has taken place in the mining industry due to China's desire to emerge as a world superpower. Increasing coal trade is believed to alter the development status of developing markets, particularly in the Asia Pacific.

Increasing Mineral Extraction Activity

In the way of power production, coal provides approximately 40% of power, which can increase the market's explosive growth rate. Mining explosives industry development is also influenced by the surge in mineral extraction for the needs of several industries.

Rising Infrastructure Activity

The construction of new infrastructure is also accompanying a burgeoning demand for mining activities, which is creating a market for manufacturers of mining explosives.

Restraints Stringent Regulatory Environment

The production frequency of mining explosives can be affected by the strict guidelines regarding manufacturing. By creating bottlenecks due to waste and workplace health issues, companies can suffer serious damage by following the necessary policies necessary to get the company back on its expected course.

Opportunities Rising Investment Across Explosives Application

As investment in diversifying the applications of mining explosives increases, it is predicted that the overall mining explosives market will maintain its growth rate.

Technology Analysis
A high level of adoption of advanced technology, as well as the fact that large players are present, are likely to create ample growth opportunities in this region.

Segment Overview
High explosives and blasting agents make up the two major segments in the explosives market. The blasting agent’s segment is further subdivided into ANFO, water gel explosives, emulsion explosives, nitrogen explosives, and others. The ANFO explosive accounted for more than half of the total market share for explosives by explosive type because of its stability. ANFO's are sensitive to mechanical impacts when mechanically loaded into shot holes.

Mining, construction, and other end-use industries (including seismic wave generation, oil fields) comprise the global industrial explosives market based on the end-use industry. In the mining sector, there are three sub-segments: metal mining, non-metal mining, and quarrying. A rise in global mining activities, as well as a preference for industrial explosives over mechanical drilling, contributed to an increase in market share for the mining industry during the forecast period.

A comprehensive regional analysis of the industrial explosives market is included across North America, Europe, Asia-Pacific, and Latin America. The market for industrial explosives is expected to experience the highest share of growth in Asia-Pacific due to the expansion of mining and construction projects in this region, which augments the demand for mineral resources, thereby boosting the growth of the market. Dam construction and other infrastructure developments are expected to provide growth opportunities for the market during the forecast period.

Based On Type

Presently, ANFO leads the mining explosives market, and its growth trajectory is likely to continue until 2027 when it is expected to gain USD 4,403.2 million with a CAGR of 2%.

Based on Application

As a whole, the coal mining segment enjoys the strongest growth rate, with a consumption value of USD 7,739.6 million by the end of 2027 and a forecast value of USD 7,739.6 million by that time.

Regional Analysis

With 45.3% of the total market in 2019, the market for mining explosives in the Asia Pacific dominated. As a whole, the share of North American mining explosives lapsed to 19% for the same period as previously noted.  In third place is the European mining explosives market with 14.8%. Regional markets throughout Latin America, the Middle East, and Africa contribute insufficiently towards overall growth.

Recent Developments

June 2021:
With the invention of a "ground-breaking" alternative booster technology made from non-explosive raw materials, AECI Mining Explosives claims to have once again tackled this issue through innovation. The storage and transportation of explosives and their accompanying raw materials is fraught with danger. Explosive producers owe it to their clients, the communities in which they operate, and the general public to assure their safety. For decades, the performance and reliability of boosters or primers made from pentaerythritol tetranitrate (PETN) (or cyclo-trimethylene trinitramine (RDX) and trinitrotoluene (TNT) have been unsurpassed. Due to its ease of initiation from a detonator and high detonation velocity, it is still the preferred approach as an intermediary part of the detonation train around the world (VoD). It is undeniable that PETN, RDX, and TNT perform reliably when created appropriately; yet, because to its chemical make-up, its fabrication necessitates sophisticated operations and specialised raw material facilities.

Dec 2020 Downer EDI Ltd has declared that it has agreed to sell its blasting services industry called Downer Blasting Services to Enaex SA.  Enaex is an affiliate of the Chilean company Sigdo Koppers Group operations five continents and is the principal creator of explosive-grade ammonium nitrate in the region of Latin America. The transaction price signifies an enterprise value of $62 million. The Downer Blasting Services (DBS) is among one of the principal blasting servicers in the Australian mining industry.

Nov 2020 Orica is considering to set a novel benchmark for blast loading projects in the Latin American region after positioning its design for outcome solution in the region. The company currently focused on amalgamating its digital blasting tools to increase outcomes is leveraging its BlastIQ digital blast optimization platform inside this new solution.

Dec 2020 The administration of New South Wales, Australia (NSW), has revealed the introduction of an underground mine explosives facility on the Central Coast to inspire more modernization and expansion of explosive testing in the mining industry. The autonomous underground mine explosives capability is unique in Australia and aims to improve the number of explosives appropriate for underground coal mine processes. The facility is a portion of the State's strategies to develop into a national leader in mine safety expansion.

November 13, 2019  Enaex reached an agreement with Sasol Enaex, an integrated energy and chemical company to become a strategic partner for its explosives and rock fragmentation division.

Nov 2020 Epiroc and Orica have jointly agreed to create the world's first semi-automated explosives delivery structure, Avatel.  Avatel will deliver safer, efficient, and more industrious development blasting, benefits miners, will be able to look onward to as early as 2021. The solution will give operatives access to perform the development cycle from inside the cab, dropping dependence on conventional panels and eliminating workers from one of the uppermost risk areas of underground mines.

Report Overview

Based on Type

  • Ammonium Nitrate Explosives

  • ANFO

  • Bulk Emulsion Explosives

  • Cartridge Emulsion Explosives

  • Others

Based on Application

  • Coal Mining

  • Metal Mining

Quarry & Non-Metal Mining

Report Scope:
Report Attribute/Metric Details
  Market Size   2027: USD 12,729.4 Million
  CAGR   2% (2022-2030)
  Base Year   2021
  Forecast Period   2022-2030
  Historical Data   2019 & 2020
  Forecast Units   Value (USD Million)
  Report Coverage   Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
  Segments Covered   Type, Application
  Geographies Covered   North America, Europe, Asia-Pacific, and Rest of the World (RoW)
  Key Vendors   Hanwa Corp. (Republic of Korea), Incitec Pivot Ltd. (Australia), Pakistan Ordnance Factory (Pakistan), Austin Powder GmbH (Austria), Eurenco SA (France), Explosia, Inc. (Czech Republic), EPC Group (France), Yara (Norway), NITROERG SA (Poland), Forcit Group (Finland), TITANOBEL (France), Solar Industries India Ltd. (India), MAXAMCorp Holding, S.L. (Spain), Orica Limited (Australia), IDL Explosives Limited (India), Enaex S.A. (Chile), ANHUI JIANGNAN CHEMICAL INDUSTRY CO., LTD (China), China Poly Group Corporation (China), Bulk Mining Explosives (Pty) Ltd. (South Africa), NOF Corporation (Japan), IDEAL Industrial Explosives Ltd. (India)
  Key Market Opportunities   Rising Investment Across Explosives Application
  Key Market Drivers   Escalating the mining explosive market trends favorably.

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Frequently Asked Questions (FAQ) :

The global market for mining explosives would secure a 6.38% CAGR during the forecast period discussing 2018 to 2023.

The global mining explosives market would reach a valuation of USD 12,729.4 million by 2023.

A smooth growth of the mining explosives market can be hindered by health hazards, stringent regulations, and waste production.

It is estimated that the coal mining segment would generate the maximum revenue for the mining explosives market.

Mine explosives would be dominated by ammonium nitrate fuel oil (ANFO).

Competitive Landscape – Mining Explosives Market

The global mining explosives market is operating at growth stage of life cycle and has portrayed considerable growth over the forecast period. The global mining explosive market is highly fragmented and consists of many organized and unorganized industry players. Majority of the industry players are well-established manufacturers operating at a medium degree of competition across the globe. The growth of mining explosives is directly proportional to the growth of the coal and metal production, which is driving the industry rivalry among market participants. Taking into account the growth witnessed by mining explosive, the market is expected to operate at a high degree of competition over the forecast period.

The major players operating in the mining explosives market are Hanwha Corp, Incitec Pivot Ltd., Austin Powder Gmbh, Explosia, Inc., Orica Limited, EPC Groupe, Forcit Group, Solar Industries India Ltd. Yet, the market is also dominated by other players such as Yara, NITROERG SA, TITANOBEL, IDL Explosives Limited, and NOF CORPORATION among others. The prominent player Orica limited is engaged into manufacturing of commercial explosives and mining & tunnel support system since 1874. They also produce mining chemicals containing sodium cyanide and emulsifiers. The company entered into joint venture with Yara International for opening of technical grade ammonium nitrate plant in Western Australia. This expansion of plant is expected to reach production capacity of around 330000 tons of ammonium nitrate per year. This plant is situated next to Pilbara fertilizer ammonium plant, which exports around 800000 tons of ammonia per annum across the globe. Thus, this expansion is expected to strengthen company’s position in ammonium nitrate along with mining explosives market.

In August 2015, Orica Limited also opened a new ‘Center of Innovation and Collaboration’ in Chile. This new facility in line with the success achieved by Orica Limited through other center of innovation and collaboration in Australia, Germany, Cananda, Sweden, and United States. This opening is expected to strengthen the company’s various partnership in the mining industry while ensuring substantial investment in innovation to keep up with the growing demands.

Hanwha Corporation is one of the leading trading and manufacturing firm operating in explosive, defence, machinery, and trading. As of 2016, company generated explosives revenue around 12% in the same year owing to growing demand in mining and quarrying activity. In 1958, the company was first to succeed in the production of dynamite. In November 2017, Hanwha Corporation entered into contract agreement with Whitehaven Coal Limited to supply all bulk and initiating explosives and down-the-hole services. Under this agreement, company would supply around 65,000 tons per year of bulk explosives and strengthen its position in Australia and Indonesia.

EPC Groupe acquired NORDOX a North American company in the year 2016. Through this acquisition, the company is also expected to have an efficient unit of production in Canada and is likely to enable them to venture into the high-quality mining client of the region. This acquisition is in line with the company’s strategy to strengthen their position in the North American region.

MAXAMCorp Holding, S.L a leading manufacturer operating in civil explosives, initiation systems, and other services for infrastructure, mining, and quarries. They also provide services in fields such as cogeneration plants, renewable energies, wind turbine parks, and biomass. In September 2015, MAXAM North America, a subsidiary of MAXAM Civil Explosives inaugurated emulsion manufacturing facility in Ogdensburg, New York. With this opening, the company will be able to deliver more to their customer located in U.S. and Canada. The strategic location of Ogdensburg with close proximity to construction and keystone markets will help them cater to both U.S and Canadian consumers.

In 2015, MAXAM Group inaugurated a propellants technology center in EXPAL's Murcia facilities. This R&D center empowered the strategic technology for MAXAM Group, applied both in the civil and defense sector. This research and development center is first of its kind in southern Europe and is specially targeted to the defense and civil sectors

ANHUI JIANGNAN CHEMICAL INDUSTRY CO., LTD is involved in the research and development, manufacture, and distribution of civilian explosives acquired Zhejiang Dun'an New Energy, a renewable energy-based company. This move is in line with the company’s strategy to diversify their business segment into the renewable energy market.