Silver production to rise by 8% in 2021 after falling last year

Leading analytics company GlobalData has estimated that global silver mine production will increase by 8.1% this year, in a strong bounce back from the 2.4% fall in silver output seen in 2020.

COVID-19 related lockdowns and suspensions to mining activity in key silver producing countries, particularly Peru, Mexico and China, contributed to a fourth consecutive annual decrease in new silver production last year.

However, global silver production will reach 918.3 million ounces (Moz) in 2021 and will exceed one billion ounces by 2024 – a 3.2% compound annual growth rate (CAGR), according to GlobalData.

Mexico, Peru and China will be the key contributors towards silver mine production growth, with combined production in these countries expected to rise from a forecasted 393.9 Moz in 2021 to 443.9 Moz in 2024.

“Projects with potential to commence operations during the forecast period include the Corani project in Peru, which is wholly owned by Bear Creek Mining Corp,” said GlobalData associate project manager Vinneth Bajaj.

“It has received all the regulatory approvals and permissions, with construction scheduled to commence in the second quarter of 2021 and production in 2024.

“In addition, the Fenix gold project in Mexico, wholly-owned by McEwen Mining, is currently undergoing a definitive feasibility study. The project’s construction work is scheduled to start by the end of 2021, with operations to begin in 2022.”

The silver investment market made headlines last month when a group of retail traders attempted a squeeze on the commodity, pushing the price of the precious metal to its highest level since 2013.