Mining Grade Ammonium Nitrate Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Sales Channel (Direct, and Indirect), By End Use (Mining, Quarrying, Construction and Demolition, Others), By Region and Competition, 2020-2030F

Market Overview

Global Mining Grade Ammonium Nitrate Market was valued at USD 3.10 Billion in 2024 and is expected to reach USD 3.85 Billion by 2030 with a CAGR of 3.87% during the forecast period. The global mining grade ammonium nitrate market plays a pivotal role in the mining industry, providing the essential ingredient for explosives used in various mining operations. This sector is characterized by its close ties to mining activities, construction, and infrastructure development. In this article, we will provide a comprehensive market overview of global mining grade ammonium nitrate, delving into its applications, market size, growth trends, and key players in the industry.

 Mining grade ammonium nitrate is a chemical compound primarily used in the mining industry for its explosive properties. It consists of ammonium nitrate, a white crystalline substance, combined with various additives to enhance its stability and performance. This compound is a critical component in the manufacturing of explosives used for rock fragmentation, excavation, and other mining-related activities. The primary application of mining grade ammonium nitrate is in explosives used for mining and construction purposes. Mining grade ammonium nitrate is a core ingredient in the production of ANFO (Ammonium Nitrate Fuel Oil) explosives, which are widely used for controlled blasting in mining and quarrying.

It is used in controlled demolitions of buildings and structures, ensuring safety and precision during the process. Ammonium nitrate-based explosives are also used in the construction industry for excavation, tunneling, and foundation work. The global mining grade ammonium nitrate market is essential for the mining and construction industries, providing the explosive power necessary for safe and efficient operations. With the continued growth of these sectors, the demand for mining grade ammonium nitrate is expected to remain strong. Additionally, innovations in product formulations and safety measures are likely to further boost the market's growth. As the world's appetite for minerals, metals, and infrastructure development continues to expand, the market for mining grade ammonium nitrate remains a vital component of global industrial progress.

Key Market Drivers

Rapid Expansion of Mining Industry 

The rapid expansion of the mining industry is a major factor contributing significantly to the growth of the mining grade ammonium nitrate market. This expansion drives the demand for explosives, with mining grade ammonium nitrate being a crucial component in explosive formulations used in various mining operations. The mining industry is essential for the extraction of valuable minerals, metals, and aggregates that are used in various industries, including construction, manufacturing, and technology. As the global demand for these resources rises, mining companies need to increase production, leading to more mining operations. The extraction of minerals and ores often involves drilling, blasting, and excavation, where explosives are used to break through rock and access valuable deposits. Mining grade ammonium nitrate is a primary ingredient in the production of explosives, such as ANFO (Ammonium Nitrate Fuel Oil), that are commonly used in these operations.

In India, iron ore, representing approximately 70% of the total mineral output by value under the Mineral Conservation and Development Rules (MCDR) achieved record production of 289 million metric tons (MMT) in FY 2024–25, marking a 4.3% increase over the previous year. Manganese ore production also surged by 11.8% to reach 3.8 MMT, while bauxite output rose by 2.9% to 24.7 MMT. Lead concentrate production grew by 3.1%, reaching 393 thousand tonnes, and primary aluminium production reached 4.2 million tonnes, surpassing the previous year’s record. Refined copper showed particularly strong growth, increasing by 12.6% to 573,000 tonnes. These production increases signal a significant rise in mining activity across both ferrous and non-ferrous segments, which in turn boosts the demand for mining-grade ammonium nitrate widely used in blasting operations essential for mineral extraction. Similarly, in Australia’s Northern Territory, eight major mines are expected to generate over USD 224 million in royalties by FY 2025–26, with several undergoing expansion and development of new processing facilities. The focus on metals such as manganese, copper, gold, zinc, and bauxite underscores the growing scale of mining operations globally, reinforcing the strong outlook for the mining-grade ammonium nitrate market. 

Growing Infrastructure Development 

Certainly, the growing infrastructure development plays a significant role in driving the demand for mining grade ammonium nitrate. Infrastructure projects, such as the construction of roads, bridges, tunnels, buildings, and other critical facilities, rely on explosives for excavation and controlled blasting. Mining grade ammonium nitrate is a key ingredient in explosives used in these construction activities. Here's an in-depth look at how infrastructure development drives the demand for mining grade ammonium nitrate:

Infrastructure projects often require excavation and site preparation, including the removal of rock and earth. Explosives are used to break through hard surfaces and facilitate excavation. The construction of tunnels for transportation, water supply, and utilities necessitates controlled blasting. Explosives are crucial for creating tunnels through mountains and rocky terrain. Buildings and large structures require secure foundations. Explosives are used to remove obstacles and create stable foundations, particularly in areas with challenging geological conditions. The expansion of road networks and highways requires the removal of hills, cliffs, and rocky terrain. Explosives are employed to clear the way for road construction. The construction of bridge piers often involves drilling and blasting to create stable foundations in rivers and other bodies of water.

Government investment in physical infrastructure is rising steadily across global economies, fueling a sustained increase in demand for raw materials and, by extension, mining-grade ammonium nitrate. Among OECD countries, public infrastructure investment averaged 3.5% of GDP in 2023, up from 3.3% in 2019, with similar growth trends expected through 2024. Globally, infrastructure development needs are projected to reach approximately USD 64 trillion over the next 25 years, translating to an annual spend of 1.7% of global GDP. Notably, emerging markets (EMs) account for USD 43 trillion of this figure, driven by higher infrastructure deficits and faster economic growth, while developed markets (DMs) are expected to invest USD 21 trillion. Transportation and energy two sectors that rely heavily on bulk raw materials represent the largest share of this spending.

In India, the central government has dramatically scaled up infrastructure investment over the past decade. Capital expenditure on physical infrastructure has increased from USD 0.023 trillion (1.6% of GDP) in FY 2014–15 to USD 0.13 trillion (3.4% of GDP) in FY 2024–25, a fivefold increase. This has enabled the rapid expansion of highways, railways, airports, and port infrastructure under flagship programs such as Bharatmala, Sagarmala, and Gati Shakti. This surge in infrastructure development both globally and in high-growth economies like India translates into rising demand for minerals such as limestone, aggregates, iron ore, and bauxite. To meet this demand, mining activity is scaling up rapidly, particularly in surface mining operations that rely on blasting techniques. As a result, the need for mining-grade ammonium nitrate, a key component in industrial explosives, is increasing in tandem, reinforcing positive growth projections for the market worldwide.

Global Urbanization and Population Growth

Global urbanization and population growth are expected to be significant drivers of the mining grade ammonium nitrate market growth due to their direct impact on various sectors that rely on explosives for construction, infrastructure development, and resource extraction.

Urbanization is closely linked to the expansion and development of cities. As more people move to urban areas, there is a pressing need for infrastructure development, including roads, bridges, tunnels, airports, and public transportation systems. Explosives, which often contain mining grade ammonium nitrate, are essential for excavating, clearing land, and preparing sites for infrastructure projects. The growing number of such projects worldwide fuels the demand for explosives.

The construction industry plays a pivotal role in accommodating the housing and infrastructure needs of urban areas experiencing population growth. Explosives are used for various construction applications, including controlled blasting, foundation work, and site preparation. The expansion of urban areas leads to increased construction activities, which, in turn, drives the demand for mining grade ammonium nitrate.

According to projections by the United Nations, the share of the global population living in urban areas currently stands at 55% and is expected to rise to 68% by 2050. This shift, driven by both urbanization and overall population growth, is anticipated to add an estimated 2.5 billion people to cities worldwide over the next 25 years. Notably, nearly 90% of this urban population growth is expected to occur in Asia and Africa, reflecting the rapid development and infrastructure expansion in these emerging markets. This large-scale demographic shift is creating an urgent and sustained demand for urban infrastructure including housing, transportation systems, power networks, and public utilities. To support this growth, countries are intensifying extraction of critical raw materials such as aggregates, iron ore, copper, and bauxite resources that are essential for construction and development. As mining operations scale up to meet infrastructure needs, demand for mining-grade ammonium nitrate, a key input in industrial blasting applications continues to grow in parallel. The global urbanization trend, particularly in high-growth regions, is therefore a significant driver of long-term growth in the mining-grade ammonium nitrate market.

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Key Market Challenges

Safety regulations and compliance

Safety regulations and compliance pose significant challenges for the global mining grade ammonium nitrate market. While these regulations are essential for ensuring the safe handling and use of explosives, they can also impact the market's growth and operations.

Regulatory agencies around the world impose strict safety standards on the manufacturing, storage, transportation, and use of mining grade ammonium nitrate. Meeting these standards requires substantial investments in safety measures and equipment. Obtaining the necessary permits and regulatory approvals for the production, storage, and transportation of ammonium nitrate can be a complex and time-consuming process. Delays in permitting can disrupt operations and project timelines.

Ensuring compliance with safety regulations involves substantial costs related to safety training, equipment, and infrastructure upgrades. These costs can impact profit margins for both manufacturers and users of mining grade ammonium nitrate.

Workers involved in the production, handling, and use of ammonium nitrate must undergo extensive safety training. This requires ongoing investment in training programs and resources. The transportation of ammonium nitrate is subject to strict regulations, including packaging, labeling, and vehicle requirements. Ensuring compliance with these regulations can be logistically challenging and costly.

Regulatory agencies often require stringent security measures to prevent theft and misuse of ammonium nitrate. Implementing these security measures can be resource-intensive. In addition to safety regulations, environmental regulations are also a concern. Compliance with environmental standards is essential to prevent pollution and minimize the environmental impact of mining operations. Ammonium nitrate is sensitive to shock, heat, and friction, making it potentially hazardous. Accidents, such as explosions or chemical spills, can have devastating consequences and lead to legal and financial liabilities.

Product Quality Concerns

Public perception and opposition represent significant challenges for the global mining grade ammonium nitrate market. The way the public views the use of ammonium nitrate in mining and construction, as well as any organized opposition, can have substantial impacts on the industry.

Public perception often associates ammonium nitrate with safety risks due to its explosive properties. Accidents involving explosives can lead to heightened public fears and concerns, especially in proximity to mining or construction sites. Some communities and environmental groups are increasingly concerned about the environmental impact of mining and construction activities that use explosives. They may raise objections to potential pollution, habitat disruption, and groundwater contamination.

Public opposition can target specific mining or construction projects that involve explosives. This opposition can delay or even halt projects through legal challenges, protests, and advocacy efforts. High-profile accidents or incidents involving explosives, particularly those that result in injuries or fatalities, can lead to negative media coverage. This can further fuel public perception against the use of ammonium nitrate in mining and construction.

Engaging with local communities and obtaining social licenses to operate can become more challenging in the face of public opposition. Mining and construction companies may encounter resistance when seeking community support for their projects. Public concerns can prompt regulatory agencies to scrutinize mining grade ammonium nitrate more closely, potentially leading to stricter regulations and compliance requirements for the industry. Opposition and legal challenges can result in delays in obtaining necessary permits and approvals for mining and construction projects, increasing project costs and timelines. Companies involved in the mining grade ammonium nitrate market may face reputational risks if they are perceived as disregarding safety, environmental, or community concerns. This can impact their relationships with stakeholders and investors.

Key Market Trends

Shift Towards Safer Formulations

A key trend in the global mining grade ammonium nitrate market is a significant shift towards the development and adoption of safer formulations. As the industry prioritizes safety and environmental concerns, manufacturers are investing in research and innovation to create explosives with reduced hazards. These safer formulations aim to mitigate potential risks associated with the handling and use of ammonium nitrate-based explosives in mining and construction.

These efforts include enhancing stability, reducing sensitivity to shock and friction, and minimizing the environmental impact of explosives. The trend reflects a growing commitment to safety standards and sustainability practices, driven by stricter regulations and the need to address public and environmental concerns. Industry stakeholders are increasingly recognizing the importance of aligning their products with these safer formulations to meet evolving safety and environmental requirements while continuing to meet the growing demand for explosives in infrastructure development, resource extraction, and urbanization projects.

Environmental Sustainability

Environmental sustainability is a pivotal trend in the global mining grade ammonium nitrate market. Amid increasing concerns about environmental impact, there is a growing emphasis on developing explosives with reduced ecological footprints. Companies are investing in research and innovation to minimize ground vibrations, air emissions, and water pollution associated with explosive use in mining and construction. The industry is actively exploring eco-friendly production processes and sustainable sourcing of raw materials. Additionally, there is a push to align with stricter environmental regulations, ensuring compliance and responsible practices. This trend not only addresses environmental concerns but also meets the demands of environmentally conscious stakeholders, including regulatory bodies and customers. As sustainability becomes an integral part of business strategies, mining grade ammonium nitrate manufacturers are poised to meet the evolving expectations of a greener and more responsible industry.

Segmental Insights

Sales Channel Insights

Based on Sales Channel, direct sales emerged as the dominating segment in the global market for Mining Grade Ammonium Nitrate in 2024. They offer greater control, customization, and compliance for end-users mainly large mining companies. These customers require precise formulations, consistent product quality, and dependable logistics to support their blasting operations, all of which are critical to both safety and operational efficiency. Through direct sales, manufacturers are able to work closely with clients to tailor solutions based on site-specific requirements, offer on-site technical support, and ensure strict adherence to regulatory and safety standards. Additionally, mining companies often prefer long-term supply agreements with producers to secure stable pricing and uninterrupted access to critical inputs. Unlike indirect channels, which may introduce delays, inconsistencies, or limitations in service, direct sales provide a more integrated and responsive supply chain making them the preferred and dominant route in the mining-grade ammonium nitrate sector.

End Use Insights

Based on End Use, mining emerged as the fastest growing segment in the global market for Mining Grade Ammonium Nitrate during the forecast period. due to its intensive and large-scale use of explosives for mineral extraction. Mining operations particularly in open-pit and underground environments, require high volumes of blasting agents to break through hard rock formations efficiently and cost-effectively. Ammonium nitrate, a key ingredient in explosives like ANFO (Ammonium Nitrate Fuel Oil), is widely used because of its reliability, affordability, and energy output. With rising global demand for critical minerals such as iron ore, copper, lithium, and rare earths driven by infrastructure development, clean energy transition, and technological manufacturing mining activity is expanding rapidly, especially in resource-rich regions like Asia-Pacific, Africa, and Latin America. This surge in mining operations directly correlates with increased demand for mining-grade ammonium nitrate. Additionally, as mining projects become deeper and more complex, the reliance on precise, high-performance blasting solutions further strengthens the market position of this segment.

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Regional Insights

Based on Region, Asia Pacific emerged as the dominating region in the Global Mining Grade Ammonium Nitrate Market during the forecast period. This is due to its extensive mining activity, rapid infrastructure development, and strong demand for energy and construction materials. Countries such as China, India, and Australia are major contributors, with large-scale extraction of minerals like iron ore, coal, copper, and bauxite sectors that heavily rely on explosives made from ammonium nitrate. Additionally, the region is undergoing massive urbanization and industrialization, leading to increased demand for roads, railways, ports, and other infrastructure projects that further drive quarrying and blasting activities. Government-backed investments in infrastructure such as India’s National Infrastructure Pipeline and China’s Belt and Road Initiative fuel sustained mining operations and material demand. Furthermore, Asia-Pacific benefits from the presence of leading ammonium nitrate producers and a cost-competitive manufacturing environment, allowing for more consistent and large-scale supply. These combined factors position Asia-Pacific as the leading regional market for mining-grade ammonium nitrate, both in terms of consumption and production.

Recent Developments

• In May 2025, Omnia commissioned a new Ammonium Nitrate Solution (ANS) storage tank at its Sasolburg complex, strategically positioned between its two nitric acid and ammonium nitrate production units to support potential future expansion. The facility is equipped with a state-of-the-art Distributed Control System (DCS) for enhanced monitoring and operational safety, with advanced safety features integrated into its design. With a storage capacity of 5,000 tonnes of ammonium nitrate solution, the new tank enables a more consistent and reliable supply from Sasolburg to BME. This added capacity will help BME optimize inventory management across its sites and streamline distribution to its customer base.
• In March 2025, a leading mining explosives manufacturer in Québec entered into an offtake agreement to source green hydrogen-based ammonia from Hy2Gen’s Project Courant facility in Canada. According to Hy2Gen, the partner, whose name remains undisclosed, plans to locally convert the green ammonia into ammonium nitrate, which serves as the primary raw material for mining explosives. The offtake initiative is scheduled to commence in 2027, with full-scale green ammonia production expected to begin by 2030. The plant will operate with a 300MW electrolyser capacity. Notably, Hy2Gen was previously allocated 307MW of electricity to support the production of approximately 230,000 tonnes of green ammonia annually at the site.
• In January 2025, Chambal Fertilisers and Chemicals Limited (CFCL) revised its agreement with Larsen & Toubro Limited for the development of a Technical Ammonium Nitrate (TAN) manufacturing facility at its existing Gadepan site in Kota, Rajasthan. The revised contract also includes the construction of a Weak Nitric Acid (WNA) plant. Larsen & Toubro’s scope of work covers the complete project lifecycle ranging from design, engineering, and procurement to supply of materials, construction, project management, and commissioning. It also includes the transfer of necessary licenses for the project. Key updates to the contract include modifications to allow for the additional feed of warm ammonia into the WNA and TAN units, as well as the allocation of space within the High-Density Ammonium Nitrate (HDAN) layout to potentially accommodate equipment for future Low-Density Ammonium Nitrate (LDAN) production.
• In September 2024, a significant surge in ammonium nitrate (AN) imports from Russia to India has adversely impacted domestic fertilizer manufacturers, many of whom are currently investing over USD 464 million to expand their AN production capacity. At the same time, stakeholders in the mining industry have expressed concern over India’s growing reliance on imported AN, given its critical role in blasting operations required for the extraction of key minerals such as coal, iron ore, and limestone.

Key Market Players

• Orica Limited
• Incitec Pivot Ltd.
• Austin Powder Company
• Sasol Chemical Industries Limited
• Sigdo Koppers SA
• Maxam Explosives Inc.

Report Scope:

In this report, the Global Mining Grade Ammonium Nitrate Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Mining Grade Ammonium Nitrate Market, By Sales Channel:

o   Direct

o   Indirect

• Mining Grade Ammonium Nitrate Market, By End Use:

o   Mining

o   Quarrying

o   Construction and Demolition

o   Others

• Mining Grade Ammonium Nitrate Market, By Region:

o   Asia-Pacific

§  China

§  India

§  Japan

§  Australia

§  South Korea

o   North America

§  United States

§  Canada

§  Mexico

o   Europe

§  France

§  United Kingdom

§  Italy

§  Germany

§  Spain

o   South America

§  Brazil

§  Argentina

§  Colombia

o   Middle East & Africa

§  South Africa

§  Saudi Arabia

§  UAE

§  Kuwait

§  Egypt

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Mining Grade Ammonium Nitrate Market.

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Company Information

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