Strong presence of mining and oil & gas industry in the Latin America region is escalating demand for industrial explosives
This explosive is used for a variety of reasons such as blasting, demolition debris removal, construction materials, mining and farming, and even commercial uses such as fireworks. Industrial explosives get easily converted into gases at high pressure and temperature and the process is known as detonation and leads to rock fragmentation. There are a variety of different types of explosives available for the industrial user. The industrial explosives requires a number of safety procedures. All of these safety procedures can reduce the possibility of anyone being injured and killed during any type of explosion.
The growing demand for earth minerals, such as iron ore, bauxite,
coal, and rare earth metals is driving the market growth. The rise in
construction activities where industrial explosive are widely used in tunneling
is also contributing to the market growth. This is attributed to growing
populations which is creating demand for more infrastructure. According to the World
meters, Latin America and the Caribbean population is equivalent to 8.42% of
the total world population. The current population of Latin America and the
Caribbean is 656,055,228 as of November 10, 2020.
Also, the high demand for silver and gold in the region is further
anticipated to augment the market growth of the industrial
explosive. Moreover, increasing investment in the mining sector is again
projected to augment market growth over the forecast period. According to
Mining.com, US$56 billion of mining investment is expected to go into Peru by
2020, which is the 2nd largest producer of both copper and silver, the sixth
largest global producer of gold, and 3rd largest recipient of foreign
investment in mining projects throughout Latin America.
Key Developments:
1. In February
2020, Chemicals and explosives group Orica in Latin America acquired Exsa,
Peru’s a manufacturer and distributor of industrial explosives. Orica paid $302
million to penetrate the region’s fastest-growing market and create a
step-change in the company’s manufacturing footprint.
2. In July
2019, AECI Mining Explosives has acquired full ownership of Brazilian
explosives company Dinacon as part of its international expansion strategy,
which will give the company an increased presence in South America.
3. In November
2019, ENAEX S.A., a subsidiary of the Sigdo Koppers Group has reached an
agreement with Sasol Limited, an integrated energy, and chemical company, has
become a strategic partner for its explosives and rock fragmentation division.
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