CEH Report

Table of Contents

Abstract

Sodium cyanide is used throughout the world, primarily as a reagent in the mining industry for the isolation of precious metals. About 75% of sodium cyanide is used for gold and silver processing. However, it also has use as a chemical intermediate, especially in locations where there is not a local supply of hydrogen cyanide, since sodium cyanide can be transported and stored. In Japan and Europe, chemical uses predominate, while in North and South America, Australia, South Africa and China, use for gold isolation is the major application. There is substantial world trade in solid sodium cyanide, with the United States, Republic of Korea and Australia as the major exporting nations. Mexico, China, South America and Africa are exhibiting relatively higher growth than the rest of the world.

The major global players include DuPont, CyPlus, Cyanco, Australian Gold Reagents and Orica, but producers in the Republic of Korea and China are following closely behind. The marketing of sodium cyanide is dominated by a few large producers, with DuPont and CyPlus the major ones.

The following pie chart shows world consumption of sodium cyanide:

The sodium cyanide market has changed quite a bit in recent years as a result of the impressive rise in gold prices. Gold mining companies have been investing capital in new grassroots exploration projects, as well as prolonging activities in mines that had been winding down. This has resulted in increased demand for sodium cyanide, and growth is expected to continue during the forecast period, depending on continuing operations at the gold mines. However, it is possible that demand could decline over the next five years because of a combination of factors. If lower-quality grades are processed, it would not increase the cyanide requirements. Increasing delays and impediments in starting up large-scale projects could impact demand, as would investment in capital costs. The ongoing global financial crisis also makes it difficult for mining companies to finance projects. There has been limited success in exploration and relatively fewer new areas are available for gold exploration and production. A decrease in gold production also increases the potential of higher long-term gold prices.