Southern African Mining Explosives Market Remains Rich With Possibility, States Frost & Sullivan

CAPE TOWN, South Africa, March 18, 2010 - Southern Africa is endowed with expansive mineral deposits whose
exploitation is set to ensure sustained demand for mining explosives.
Explosives are used in varying operations such as the removal of overburden
in surface mining, accessing of mineral ore underground and splitting of
rocks in quarrying.

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New analysis from Frost & Sullivan (www.chemicals.frost.com),
Southern African Mining Explosives Market, finds that the market earned
revenues of $689.4 million in 2008 and is forecast to grow to $1185.8 million
by 2015. The following technologies are covered in this analysis: bulk mining
explosives, packaged explosives and detonating systems.

If you are interested in more information on this study, please send an
e-mail to Patrick Cairns, Corporate Communications, at
patrick.cairns@frost.com, with your full name, company name, title, telephone
number, company e-mail address, company website, city, state and country.

"Increased investments into the mining sector have fuelled demand for
mining explosives," states Frost & Sullivan Research Analyst Tatenda Zingoni.
Frost & Sullivan anticipates that as the global economy rebounds from the
economic downturn and commodity prices recover, there will be greater demand
for mining explosives.

The recent commodity price slump led to a decline in the demand for
minerals, which had a corresponding impact on the demand for mining
explosives. Coupled with ammonia shortages in the market, growth in the
mining explosives sector was stifled.

"Shock tube detonating systems are the primary system of choice in the
Southern African mining explosives market," notes Zingoni. "At one point,
despite the noted functional advantages over traditional cord detonating
systems, shock tube systems were more than double the cost of cord systems,
hindering their uptake in the market."

The interplay of market forces aligned with improved perceptions in the
market of the advantages of shock tube systems has led to their increased
usage. Prices of shock tube assemblies are also now just under 30 per cent
higher than capped fuse and igniter cord systems.

Ammonia is a major input in the manufacture of mining explosives and is
also a key raw material that is utilised in other industries, such as
fertilisers. Competition for limited amounts of ammonia results in rising
prices for manufacturers. Mining explosives manufacturers do not have
substantial influence on the mining sector as they are dependent on the
industry.

In the face of the aforementioned conditions in the market, manufacturers
can adopt a few key strategies in order to ensure sustainable operations and
demand for their products.

"Establishment of forward contracts to lock-in supply of essential inputs
such as ammonia will go a long way to hedge against bottlenecks for
producers," advises Zingoni. "Preferential supplier agreements will also
enable mining explosives manufacturers to have a guaranteed demand base for
mining explosives products."

Southern African Mining Explosives Market is part of the Chemicals &
Materials Growth Partnership Service programme, which also includes research
in the following markets: South African Market for Agriculture Chemicals,
Strategic Opportunities for the Biofuel Industry in Key Sub-Saharan African
Countries, Key Sub-Saharan Crop Protection Chemical Markets and, Sub-Saharan
African Biofuels Market. All research services included in subscriptions
provide detailed market opportunities and industry trends that have been
evaluated following extensive interviews with market participants.

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Southern African Mining Explosives Market

M4B6

    Contact:
    Patrick Cairns
    Corporate Communications - Africa
    P: +27-18-464-2402
    E: patrick.cairns@frost.com

www.frost.com

Patrick Cairns, Corporate Communications - Africa, of Frost & Sullivan, +27-18-464-2402, patrick.cairns at frost.com