Latin America silver still strong

Mexico and Peru will remain the world’s largest silver producers until at least 2001, by which time they will be producing 115 million oz. and 68 million oz. per year, respectively, predicts the Washington, D.C.-based Silver Institute.

According to World Silver Production Forecast 1998-2001, published recently by the institute, Australia will experience the biggest increase in output. The country ranked eighth in production in 1997, is expected to become the third-largest producer in 2000 and 2001, when the Cannington silver-lead-zinc mine opens. The mine is expected to produce 25 million oz. per year, helping Australia edge out the U.S. for third place in 2000.

Increased production of late will push production in the U.S. to 54 million oz. in each of 1999 and 2000, increasing slightly to 55 million oz. in 2001. One-fifth of U.S. production will come from the McCoy-Cove mine in Nevada, owned by Echo Bay Mines. In 1997, production increased at the Coeur d’Alene Mines’ Rochester operation, also in Nevada, and at two mines in Idaho: Sunshine Mining & Refining’s namesake mine and Hecla’s Mining’s Lucky Friday producer. All are primary silver producers.

In Canada, where silver is produced solely as a byproduct from base metal and gold mining, output will hold steady at 37 million oz. over the next four years.

Last year was the ninth straight year that demand for silver exceeded supply from mining and recycling. Between 1990 and 1997, silver fabrication demand exceeded mine production by 2.2 billion oz., reducing above-ground inventories by more than 1 billion oz.