Worldwide silver production is expected to increase annually, reaching 567 million ounces by 2001, up from 1997 levels of 501.9 million ounces, according to the World Silver Production Forecast, 1998-2001, published by The Silver Institute.
This increase is caused by the continued demand for silver. Between 1990 and 1997, silver fabrication demand outstripped mine production by 2.2 billion ounces, which reduced aboveground inventories by more than 1 billion ounces.
Mexico, the world’s largest silver producer, is expected to increase silver production from 86.2 million ounces in 1997 to 115 million ounces by 2001 despite reduced estimates due to lower base metal prices. About 80 percent of the world’s silver is produced as a byproduct of gold or other metals, but Mexico is one of the few countries that has primary silver mines.
Mexico’s silver industry has two of the world’s top silver miners, Industrias Penoles and Grupo Mexico which together produced 66 percent of all Mexican silver mined in 1997.
While Mexico produces 17 percent of the world’s silver, Peru is expected to remain the world’s second largest silver producing country at 13 percent, according to the report. Peruvian miners are predicting a production spike in 1999 of 74 million ounces, then a return to 1997 production of 67 million ounces through 2001.
In the United States, the world’s third largest silver producer (11 percent of total silver mined), production rose 13 percent to 57 million ounces in 1997 compared to 1996. The report predicts a slight dip to 56 million ounces when actual 1998 data is compiled, then another dip to 54 million ounces in 1999. Production is expected to rise again to 55 million ounces in 2001. Almost one-fifth of U.S. silver production came from Echo Bay’s McCoy/Cove mine with production also increasing at Coeur d’Alene Mines’ Rochester facility.
Australia is expected to replace the United States by 2000 as the world’s third largest silver producer because of the development of the Cannington mine, a silver-lead-zinc facility that is expected to produce 25 million ounces of silver annually.
Why is this a question? Because Mexico has silver and oil deposits?
February 17th, 2010 at 4:22 pm
Why is this a question? Because Mexico has silver and oil deposits?
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