The sodium cyanide market is estimated to be valued at USD 2.77 billion in 2024 and with CAGR of 5.3% over the forecast period 2024-2031. Furthermore, sodium cyanide is widely used for extraction of gold from ores as it forms a complex ion with gold which can be separated from the ore.
The growth of the sodium cyanide market is driven by increasing gold mining activities and rising demand from chemical industry. Gold mining has witnessed significant growth over the past few years due to rising gold prices globally. Sodium cyanide is used as coagulant for extracting gold from ores during mining process. This has resulted in increased consumption of sodium cyanide. Furthermore, sodium cyanide also finds applications in production of several chemicals including nitriles, adiponitrile and others. The growing chemical industry is thus augmenting the demand for sodium cyanide. The increasingly stringent environmental regulations regarding disposal of cyanide from mining operations may hamper the market growth over the forecast period. However, development of new gold mining projects is expected to create new opportunities.
Increasing Demand from Mining Industry
The mining industry is one of the largest end-users of sodium cyanide globally. Sodium cyanide is widely used in various mining processes such as gold extraction, silver extraction and others. According to data, the mining industry accounts for over 85-90% of the total sodium cyanide demand. With rise in mining activities worldwide due to rapid urbanization and industrialization, the demand for minerals and metals is witnessing strong growth. This increased mining output is driving the consumption of sodium cyanide significantly.
Rising Gold Production
Gold is one of the key metals extracted using sodium cyanide. It finds applications in electronics, jewelry and other industries. The demand for gold has witnessed a steady rise over the past few years owing to its status symbol and investment prospects. As per reports, total gold production stood at over 3000 tons in 2020 and is estimated to grow further in the coming years. The increased gold mining and production directly boosts the demand for sodium cyanide from this end-use sector. Major gold producing countries like China, Australia, USA, Russia rely heavily on sodium cyanide for extracting gold from ores.
Stringent Environmental Regulations
Sodium cyanide is categorized as a toxic substance and poses risks to the environment and human health if not handled and disposed of properly. Many countries and regions have implemented strict rules regarding the manufacture, transportation, usage and disposal of sodium cyanide. For example, the EU has classified sodium cyanide as a dangerous preparation and has quality standards to be followed. Non-compliance can result in heavy penalties. This regulatory burden adds to the cost of operations for sodium cyanide producers and users.
Availability of Alternative Reagents
While sodium cyanide remains, the primary leaching reagent used in gold extraction, alternative reagents like thiosulfate are increasingly gaining traction. Thiosulfate does not produce harmful hydrogen cyanide gas during leaching like sodium cyanide. It is also less toxic and does not require special handling and storage. Many mining companies are evaluating the potential of thiosulfate as an alternative to sodium cyanide especially for processing low-grade ores and heap leaching operations. This shifting preference poses a threat to the market dominance of sodium cyanide over the long run.
Expanding Exploration Activities
Junior mining companies and major miners are continuously exploring new mining sites worldwide to augment their mineral reserves. Exploration activities are expected to surge significantly in the coming years especially in developing regions of Asia Pacific, Latin America, Africa due to their high mineral potential. Successful exploration leads to setting up of new mining projects which spurs the demand for input materials like sodium cyanide. This growing exploration footprint presents lucrative opportunities for sodium cyanide producers.
Enhanced Recovery Solutions
Rising mineral grades are prompting mining companies to adopt enhanced minerals recovery solutions to maximize output without increasing inputs. Sodium cyanide producers are innovating their product formulations and offering value-added services to assist mining operations in recovering more gold per ton of ore. They are developing pre-leach reagent mixtures, advanced leach aids and other additives to boost the recovery rates. Customized sodium cyanide products and technical support regarding optimization of leach conditions hold immense potential in the future.
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Key Developments
- In February 2024, Orica, a prominent player in the commercial explosives and blasting systems market, has announced plans to expand its mining chemicals business through the acquisition of Cyanco, a major producer of sodium cyanide for the gold mining industry. The acquisition, which is set to strengthen Orica's position in the global gold mining market, will be partly funded by an equity raising initiative.
- In 2021, Cyanco, a major producer of sodium cyanide for the gold mining industry, partnered with Cycladex, a company that specializes in cyanide-free precious metals recovery processes. This partnership aimed to explore and develop alternative solutions for gold extraction that do not rely on traditional cyanide-based methods.
- In July 2021, Sasol Limited, a leading South African chemical company, reached an agreement to sell its sodium cyanide business to a Czech-based subsidiary of Draslovka Holding for over US$95 million. This strategic acquisition by Draslovka Holding aimed to introduce new technologies and ensure a reliable and consistent supply of cyanide to the mining sector.
- In December 2021, The Chemours Company, a global leader in chemistry and advanced materials, finalized the sale of its mining solutions division to Draslovka a.s., a private chemical company based in the Czech Republic, for USD 521 million. Draslovka a.s. specializes in cyanide production for mining and other industrial activities, marking a significant acquisition in the chemical industry.
Key Players
Hindusthan Chemicals Company, Cyanco, Australian Gold Reagents Pty. Ltd., Asahi Kasei Corporation, Orica Limited, Evonik Industries AG, Changsha Hekang Chemical Co., Ltd., Draslovka Holdings B.V., Sasol Limited, The Chemours Company, Gujarat Alkalies and Chemical Limited, PJSC LUKOIL, Taekwang Industrial Co., Ltd., American Elements, Wesfarmers Limited, UPL, Loba Chemie, Nilkanth Organics, Taekwang Industrial, and CSBP
