Overview

An explosive is a reactive material that is comprised of a massive amount of potential energy and can produce an explosion if it is suddenly released. There are three classes of namely low explosives, industrial explosives, and military explosives. Industrial explosives find applications in mining such as metal mining, quarrying, and non-metal mining and in construction such as tunneling and blasting older buildings for reconstructions. Major uses of explosives are in fireworks, mining, blasting rock masses for tunneling, construction activities, quarrying, hydroelectric power projects, military wars, mineral extraction, and the oil & gas industry, to name a few.

The Latin America industrial explosives market is estimated to account for US$ 1,888.38 Mn in terms of value by the end of 2027.

Market Driver

Rising transition from open-pit mines to underground mines is expected to boost the Latin America industrial explosives market growth over the forecast period

Mining and exploration companies are focused on extracting minerals from underground mines rather than open-pit mines to reach mineral-rich resources deep inside the earth. Furthermore, open-pit mines require a comparatively bigger sized landmass than underground mines thus transition from open-pit mines to underground mines will spur the demand for industrial explosives. Hence, these factors are expected to drive growth of the Latin America industrial explosives market in the near future. For instance, in 2013, over 80 Australian mining, equipment, technology, and services (METS) companies have established their subsidiaries in Chile to facilitate and invest in underground mining. Furthermore, in 2013, the Mexican mining industry attracted foreign investment of US$ 6.58 Bn.

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Market Opportunity

The tapping of rich mineral resources can provide major growth opportunities for market players

Government in emerging economies of Latin America such as Brazil, Chile, Peru, and Mexico are focusing on tapping majority of mineral resources through mining and quarrying boost growth of the aforementioned countries For instance, in January 2015, the government of Peru invested around US$ 62 Bn on mining projects to expand the extraction capacity of minerals including gold, copper, and zinc.

Market Restraint

Strict regulatory policies regard environment are expected to hamper the Latin America industrial explosives market growth over the forecast period

Since explosives lead to various adverse effects on the environment such as release of toxic gases such as nitrogen oxide and carbon dioxide, governments of various countries have imposed stringent regulations on the use and storage of industrial explosives. For instance, in 2014, the Peruvian government stated that mineral exploration companies need to make an Environmental Impact Declaration (DIA) to specify the number of explosives to be used on seismic generation and mining and their tentative impact on the environment.

Market Trends

Rising trend of nitrogen compound-based explosives
Mining companies are increasingly using nitrogen compound-based explosives, owing to their cost-efficiency and their stable behavior. Nitrogen compound based explosives such as ammonium nitrate fuel oil (ANFO) are more stable than other explosives. Moreover, such explosives are cost-efficient and are relatively cheaper than other explosives.

Increasing use of explosives to increase the depth of underground mines
Major players involved in the mining industry in Latin America are emphasizing more on increasing the depth of underground mines to extract more amount of minerals and are thus deploying large amounts of explosives specially ANFO and bulk explosives. For instance, in March 2015, the Chile El Teniente copper mine underwent an expansion in depth of about 350 meters below the existing undercut level with an investment of US$ 5.4 Bn.

Competitive Section

Major companies involved in the Latin America industrial explosives market are MAXAM, AEL Mining Services Ltd., EXSA SA, Enaex, Austin International, Orica Limited, Keltec Energies, Economic Explosives, IBP Co., Noble Explochem, Accurate Energetic Systems, LLC., and Detotec North America Inc.

Key Developments

Major players are focused on agreements and contracts, in order to enhance the market presence. For instance, in November 2019, Enaex SA entered into agreement with Sasol Limited to become a strategic partner for its explosives and rock fragmentation, division.
Key companies in the market are involved in collaboration and partnership, in order to gain a competitive edge in the market. For instance, in November 2019, Orica Limited collaborated with Epiroc, a Sweden-based mining equipment manufacturer, to develop semi-automated explosives delivery system.
Segmentation

Market Taxonomy:

By Country
Chile
Peru
Brazil
Colombia
Mexico
Argentina
Rest of Latin America
By Explosive Type
High Explosives
Blasting Agents
By End-use Industry
Mining
Metal Mining
Non-Metal Mining
Quarrying
Construction
Others