Gypsum Mining Business | |
Gypsum Mining Business. Investment and Business Opportunity in Mineral & Mining Sector Gypsum is an evaporite mineral most commonly found in layered sedimentary deposits in association with halite, anhydrite, sulfur, calcite, and dolomite. Gypsum (CaSO4.2H2O) is very similar to Anhydrite (CaSO4). The chemical difference is that gypsum contains two waters and anhydrite is without water. Gypsum is the most common sulfate mineral. Gypsum is a mineral found in crystal as well as masses called gypsum rock. It is a very soft mineral and it can form very pretty, and sometimes extremely large colored crystals. Massive gypsum rock forms within layers of sedimentary rock, typically found in thick beds or layers. It forms in lagoons where ocean waters high in calcium and sulfate content can slowly evaporate and be regularly replenished with new sources of water. The result is the accumulation of large beds of sedimentary gypsum. Gypsum is commonly associated with rock salt and sulfur deposits. It is processed and used as prefabricated wallboard or as industrial or building plaster, used in cement manufacture, agriculture and other uses. Uses of Gypsum Gypsum uses include: manufacture of wallboard, cement, plaster of Paris, wall plasters, mortars, sheet rock, fertilizer, soil conditioning, and a hardening retarder in Portland cement. Varieties of gypsum known as "satin spar" and "alabaster" are used for a variety of ornamental purposes; however, their low hardness limits their durability. Relation to Mining Most of the world’s gypsum is produced by surface-mining operations. In the United States, gypsum is mined in about 19 states. The states producing the most gypsum are Oklahoma, Iowa, Nevada, Texas, and California. Together, these states account for about two-thirds of the United States’ annual production of gypsum. Over 30 million tons of gypsum is consumed in the United States annually. Canada, Mexico and Spain are other significant producers of raw gypsum. In all, more than 90 countries produce gypsum. In most open pit gypsum operations, benches are drilled and blasted using ammonium nitrate as the explosive. Because gypsum is so soft, most drills can drill through it at a rate of roughly 23 ft. per minute. Sometimes the drill holes become wet, which can cause problems with the ammonium nitrate. In these cases the ammonium nitrate is bagged in plastic bags before being lowered into the blast hole. Mines use approximately 1 kg of explosives for each ton of gypsum they blast. Market Outlook On the back of rising demand from industries such as construction, ceramic, cement etc., the India gypsum market is poised to grow significantly in the coming years. Government is also backing the industry by allowing up to 100% foreign direct investment (FDI) for gypsum products. As a result, FDI inflows to gypsum products industry in India have registered significant growth in the last few years. The country is thus anticipated to witness huge growth in gypsum consumption. And as per our prophecy, gypsum consumption in India would grow at a CAGR of around 4% during 2012-13 to 2017-18. The rapid infrastructure development in the country is expected to boost the Indian Gypsum industry. The growing demand for Gypsum, due to amplified construction industry, massive cement consumption and extensive use of gypsum in fertilizer and ceramic has resulted in very high gypsum consumption. The Indian gypsum Market is expected to exhibit immense opportunity for domestic as well as foreign investors. With the support of rising demand from industries such as construction, ceramic, and cement; the Indian gypsum market is poised to grow significantly in the coming years. The global gypsum market is valued at $1.49 billion in 2016, equivalent to 252 million tonnes, with 33.3% and 60.9% being consumed in the plasterboard and cement industries, respectively. The gypsum market is forecast to grow at a CAGR of 9.9% to reach nearly $2.4 billion by 2018 and $3.8 billion by 2026. Nearly all gypsum is used in three prime applications: building construction, cement (where it is used as a setting retarder), and agriculture (mostly for soil conditioner and fertilizer). Another common application is wet or powdered plaster. Minor applications include dentistry and surgical/medical, e.g., plaster casts. Population growth is dramatic in many developing countries, particularly India and China, and represents a major driver in gypsum consumption. Not only does large-scale industrialization create a need for rapid improvements in infrastructure, but increasingly prosperous population’s demand higher-quality housing and better living conditions. The global gypsum industry is mainly driven by the construction and renovation sectors as natural gypsum is especially suitable for the manufacture of cement, building plasters, dry mixes, wallboards and other gypsum products. In some of these uses, gypsum has no effective substitutes, for instance, in Portland cement production. On an average basis, an increased use of wallboards and plasters has been a major driver for gypsum production worldwide. The construction industry has significant spatial and temporal variability, with strong dependence on macroeconomic situation in each specific country and region. The macroeconomic variability in the construction industry affects the behavior of the gypsum market, which influences the dynamics of gypsum production volumes. The total reserves/resources of mineral gypsum in India as on 1.4.2015 have been estimated at 1,330 million tonnes of which 37 million tonnes have been placed under 'Reserves' and 1,293 million tonnes under 'Remaining Resources' category. Of the total reserves/resources, Fertilizer/ Pottery grade accounts for about 80% and Cement/Paint grade 13%. The Unclassified and Not-known grades together account for 5% resources. The remaining two percent of resources is shared by Surgical Plaster and Soil Reclamation grades. By States, Rajasthan alone accounts for 81% resources, Jammu & Kashmir 14% and Tamil Nadu 2% resources. The remaining 3% resources are in Gujarat, Himachal Pradesh, Karnataka, Uttarakhand, Andhra Pradesh and Madhya Pradesh Gypsum deposits are usually found at shallow depths and are scattered over large areas. The deposits are mined out by opencast method and usually by manual mining except a few semi-mechanized mines in Rajasthan. In semi mechanized mines, gypsum is excavated by backhoe excavator and directly loaded into trucks/ dumpers. The trucks and dumpers loaded with gypsum are dispatched directly to the user industry or are taken to railway siding for further loading into railway wagons for dispatch to far living user industry. In some mines of Rajasthan, the excavated gypsum is ground before dispatching to the user or party. Based on the use of gypsum, the production is classified into different grades like Fertilizer grade, Cement grade, plaster of Paris grade, surgical grade, etc. Exports of gypsum and plaster at 110,882 tonnes in 2015-16 increased by 69% from 65,645 tonnes in the preceding year. Exports of alabaster was not reported during 2015-16, although during 2014-15, it was 21 tonnes. Other segments that would attract attention would be production of gypsum wallboard which is currently negligible in India. It could find better prospects because of its light weight and other special characteristics. It being an excellent partition material could facilitate its utility in high rise building constructions. India's domestic resources of gypsum are large enough to meet increased demand. 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