Report Says U.S. Demand for Mining Chemicals Will Surpass $2 billion in 2011

Piribo, a UK-based independent online store supplying business information on the pharmaceutical and biotechnology industries, has now added a new report which finds that U.S. demand for mining chemicals is projected to surpass $2 billion in 2011.

"Mining Chemicals - US industry forecasts for 2011 & 2016," which is available at www.piribo.com/publications/chemical/mining_chemicals.html, finds that explosives will remain the leading mining chemical.

The report says explosives, which accounted for more than half of total mining chemical demand in 2006, will continue to be the single largest product category based mainly on their extensive use in coal and aggregate production.

Authors also say that the large coal market offers best opportunities. Coal production was the largest market for mining chemicals in 2006, based primarily on large explosives requirements, and will provide the best growth.

The study finds that high natural gas and petroleum prices are renewing interest in coal as an energy source. It states that high prices and strong global demand are improving prospects for U.S. producers as imports are diverted to fast growing Asian consumers. Additionally, the report finds that U.S. companies are considering capacity expansions, even at sites which were not considered economically feasible in the past, propelled by these factors.

Analysts believe that there is a growing emphasis on the use of chemicals to improve operating efficiency at mines and mineral processing facilities aided by improved fundamentals in the U.S. mining industry.

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