SerenOx Sulphuric Solutions (Pty) Ltd Business Plan › Section 3 › Market Opportunity & Industry Analysis

3.1 Global Sulphuric Acid Market Overview

Sulphuric acid (H₂SO₄) is the most widely produced industrial chemical globally, with annual production exceeding 260 million tonnes. Its applications span fertiliser manufacturing, petroleum refining, metal processing, and chemical synthesis. The mining sector represents one of the fastest-growing demand segments, driven by the global energy transition and the intensifying need for battery metals including copper, cobalt, nickel, and lithium.

The global sulphuric acid market was valued at approximately USD 13.2 billion in 2024 and is projected to reach USD 18.5 billion by 2030, representing a CAGR of 5.7%. Growth is underpinned by expanding mining activity in Africa, South America, and Southeast Asia, as well as increasing demand for phosphate fertilisers in emerging agricultural economies.

3.2 DRC Mining Sector & Demand Drivers

The Democratic Republic of the Congo is the world’s dominant producer of cobalt, accounting for approximately 73% of global production, and is the largest copper producer in Africa, with output exceeding 2.5 million tonnes per annum. The Katanga Copperbelt, centred on the provinces of Haut-Katanga and Lualaba, hosts some of the world’s most significant copper-cobalt deposits and continues to attract substantial foreign direct investment from major mining companies and sovereign wealth funds.

Sulphuric acid is an indispensable reagent in the hydrometallurgical processing of copper and cobalt ores. The heap leaching and SX-EW processes that dominate DRC mining operations consume significant volumes of sulphuric acid, typically in the range of 3–5 tonnes of acid per tonne of copper cathode produced. As mine production capacity expands to meet global demand for electric vehicle batteries, renewable energy systems, and grid infrastructure, the corresponding demand for sulphuric acid is expected to grow commensurately.

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3.3 Demand Projections

3.4 South African Chemical Industry Context

South Africa’s chemical industry is the largest and most diversified in sub-Saharan Africa, contributing approximately 8% of national manufacturing GDP and employing over 180,000 workers. The country possesses established infrastructure for the production, storage, and export of industrial chemicals, supported by a well-developed regulatory framework, skilled workforce, and competitive energy costs relative to other African producers.

Key competitive advantages of the South African chemical industry include established port infrastructure at Durban and Richards Bay, an extensive rail network connecting industrial centres to border crossings, preferential trade agreements under the Southern African Development Community (SADC) protocol, and a favourable geographic position relative to major mining jurisdictions in Zambia, Zimbabwe, Mozambique, and the DRC.

3.5 Competitive Landscape

The supply of sulphuric acid to DRC mining operations is currently served by a combination of South African producers, Zambian acid plants (often captive to mining operations), and imports from the Persian Gulf region. SerenOx has identified several competitive gaps in the current market that present a significant opportunity:

• Supply Reliability: Existing suppliers frequently experience production interruptions, logistics delays, and quality inconsistencies that disrupt mining operations and increase downtime costs

• Logistics Capability: Few competitors offer integrated end-to-end logistics solutions from production facility to mine site, leaving customers to manage complex cross-border transport independently

• Customer Service: Limited on-the-ground technical support and French-language capability among current suppliers creates friction in customer relationships

• Price Volatility: Spot-market dependence exposes customers to price spikes; SerenOx’s long-term offtake model provides pricing stability

3.6 Target Customer Segmentation

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