Silver Production By Country

We thought it was time to do a little reasearch and detail and list the worlds silver production by country. Among the top countries are Mexico, China, Peru (might be a surprise), Australia, and Russia. More details below, thanks for reading.

While somewhat tied to the gold markets, silver prices declined significantly in 2013, even though trends for both gold and silver point to gains in 2014. However, some of these gains will rely on silver production for 2014 with several countries producing prodigious amounts of silver for the world market.

Here’s a quick list of the top 5 silver producing countries in the world based on 2012 numbers (2013 numbers are being compiled):

Mexico

With a 2012 production of 162+ million ounces, Mexico is far and away the largest producer of silver in the world. Both Fesnillo and Goldcorp have several assets producing silver in conjunction with other metals such as gold, copper and zinc and with projected reserves of well over 500 million ounces, these companies should keep Mexico in the top slot for some time to come.

China

Up from 104 million ounces, China silver mines produced over 117 million ounces of silver in 2012, surpassing the silver output from Peru to become the second highest silver producing country. China is also the world’s largest producer of gold in the world.

Peru

Although Peru saw a slight increase in production from 2011 to 2012 (111 million ounces up from 110 million ounces), the output from China still outpaced it. Even though Peru is now the third largest country for silver production, with in-ground assets exceeding 120,000 tons (according to USGS), the potential is there to outpace anyone in the world.

Australia

With 2012 production at just under 57 million ounces, the mines in Australia also have the potential to increase dramatically. With in-ground assets that could exceed some 69,000 tons, much of the silver supply in the country comes from the silver bearing lead ore galena which increases production costs.

Russia

Overall, Russia’s 2012 silver output stood at 45 million ounces, most of which was produced by a single company, Polymetal. Their mine in Central Siberia produced over 5% of all Russian silver production with corporate silver production being responsible for well over half (26%) of all Russian silver production for 2012.

Even though silver is used like gold as an investment hedge metal, silver also has many industrial uses which accounts for most of the demand for silver. Although over half of all silver production goes to jewelry, silverware, bullion and other sources, the largest bulk (46%) of all silver demand is for industrial purposes. While overall global production rose slightly for 2013, the price dropped dramatically. Even though trends for 2014 do show a rebound, as an investment metal, silver may not be your best hedge against future economic issues.

Worlds Largest Silver Mines

We’ve taken some time to write an article detailing the largest silver mines in the world. These behemoths make up 35%+ of the silver mined in the entire world. If you are looking to invest in silver mines you might want to start researching one of these.

As with any business over the last few years, silver mining has seen gains and declines which means defining even the “top 10″ silver mines is a rapidly shifting landscape. However, several silver mines are consistently at the top of the charts, mining some 35% of the world’s silver mining production. Here’s a quick list (in no particular order.)

BHT Billiton (Cannington)

Queensland, Australia – Produced some 5% of the world’s mining supply with ~39 million ounces in 2012. Also the world’s largest lead mine.

Pan American Silver (Canada)

Peru, Bolivia, Mexico, Argentina – Although based in Canada, Pan American’s silver mine in Alamo Dorado, Mexico is it’s largest producing mine, delivering some 5.5 million ounces/year.

Polymetal (Russia)

Russia, Kazakhstan – With 36 licenses to mine silver in Russia and Kazakhstan, Polymetal produced some 15 million ounces of silver last year. They also have over 297 ounces of silver in reserves.

KGHM (Poland)

Poland – Primarily known as a copper mining company, KGHM produced some 41 million ounces of silver in 2012. Some argue this makes it the world’s largest producer of silver, but some argue it depends on how their tonnage is reported as the silver is mixed with copper, then refined.

Fresnillo (Mexico)

Mexico – Formerly a part of the state owned mining operations, Fresnillo produced around 39 million ounces of gold last year from the three mines they operate in Mexico. This output may slide due to declining ore grades.

Coeur d’Alene (USA)

With mines located in Bolivia, Mexico, Australia and the US, Coeure d’Alene is one of the few silver companies with operations in the US. Between their Palmarejo, Mexico mine and the Rochester mine in Nevada and their Bolivian mine, they produced some 18 million ounces of silver in 2012.

Side Notes

As you may notice, silver mining is a worldwide process. Since most mining companies mine far more than silver (gold, lead, copper and zinc are just a few examples), if you have plans to invest in a mining company, you’ll want to do more research into the other metals produced.

Also, keep in mind that, depending on where the mine is located, the quality of the ore being mined and the economy surrounding the process, some mines achieve a much lower cost per ounce than others. as an example, the Alamo Doredo mine owned by Pan American has a cost per silver ounce of around $5USD while the operating costs of Coeur d’Alene’s Palmareo, Mexico mine is around $1.35USD per ounce. There are differences that truly can make a real difference in your investment strategy, and a “top” list only gives you so much information.