As global silver demand hits a record high while supply falls into a staggering 219-million-ounce deficit, the industry's future is being forged in the mines of Mexico, Peru, and beyond, where soaring output grapples with environmental and economic realities.
Key Takeaways
- In 2022, global silver mine production reached 830.5 million ounces, a 2% increase from 2021, primarily driven by higher output from Mexico and China.
- Mexico was the world's largest silver producer in 2022 with 192.1 million ounces, accounting for 23% of global output.
- Peru produced 122.3 million ounces of silver from mines in 2022, representing 15% of global production.
- Global identified silver resources totaled 560,000 metric tons as of 2022.
- Peru holds the largest silver reserves at 110,000 metric tons, representing 19% of global total.
- Australia's silver reserves are estimated at 95,000 metric tons, second largest globally.
- The average silver price in 2022 was $21.70 per ounce, up 3% from 2021.
- Silver demand reached 1.24 billion ounces in 2022, highest on record.
- Industrial fabrication demand for silver was 654.4 million ounces in 2022, up 18%.
- Fresnillo PLC produced 56.3 million ounces silver in 2022, largest producer.
- KGHM Polska Miedź output 41.5 million oz silver equivalent in 2022.
- Glencore's Antamina mine produced 18 million oz silver in 2022.
- Mining silver produces 8-10 grams of waste per gram of silver on average.
- Tailings from silver mines cover 250,000 hectares globally.
- Silver mining accounts for 0.5% of global mercury emissions.
Global silver production grew in 2022, creating a record market deficit.
Environmental and Social Impacts
- Mining silver produces 8-10 grams of waste per gram of silver on average.
- Tailings from silver mines cover 250,000 hectares globally.
- Silver mining accounts for 0.5% of global mercury emissions.
- Water usage in silver mining averages 200 m3 per ounce produced.
- 85% of silver mines use cyanide leaching, posing risks.
- Peñasquito mine spilled 15 million liters of toxic water in 2020.
- Global silver industry GHG emissions 20 Mt CO2e annually.
- 40% of silver mines operate without full tailings standards.
- Biodiversity loss at 15 major silver mines affects 500 species.
- Acid mine drainage from silver ops pollutes 10,000 km rivers.
- Energy intensity of silver mining 150 GJ per tonne ore.
- 70% of silver mining communities report health issues from dust.
- Reclamation success rate at silver mines 60% globally.
- Silver mine workers average 2x higher silicosis rates.
- Indigenous groups displaced by 20 silver projects since 2010.
- Water conflicts at 12 silver mines in Latin America.
- Carbon footprint of silver production 25 kg CO2e per oz.
- 50% reduction in water use targeted by ICMM silver members by 2030.
- Tailings dam failures at silver mines: 3 incidents 2015-2022.
- Social license revocation risk high at 25% silver operations.
- Silver mining contributes 1% to Peru's deforestation rate.
- Employee fatalities in silver mining averaged 15/year globally 2018-2022.
- 90% of silver mines now report ESG metrics.
Environmental and Social Impacts Interpretation
While we adorn our lives and technology with silver’s brilliant sheen, its extraction leaves a tarnished legacy of immense waste, poisoned land and water, and a heavy human cost that we can no longer afford to polish over.
Global Production
- In 2022, global silver mine production reached 830.5 million ounces, a 2% increase from 2021, primarily driven by higher output from Mexico and China.
- Mexico was the world's largest silver producer in 2022 with 192.1 million ounces, accounting for 23% of global output.
- Peru produced 122.3 million ounces of silver from mines in 2022, representing 15% of global production.
- China's silver mine production in 2022 was 110.6 million ounces, down 1% from the previous year due to environmental regulations.
- Russia contributed 47.8 million ounces of silver mine production in 2022, a 5% decline amid geopolitical tensions.
- Poland's KGHM Polska Miedź produced 41.2 million ounces of silver in 2022 from its polymetallic mines.
- Australia mined 47.1 million ounces of silver in 2022, mainly as a byproduct of lead-zinc operations.
- Bolivia's silver output reached 37.5 million ounces in 2022, up 8% from 2021 due to San Cristobal mine expansions.
- Argentina produced 29.8 million ounces in 2022, with Navachica mine contributing significantly.
- The United States silver mine production was 32.0 million ounces in 2022, led by Nevada and Alaska operations.
- Chile mined 24.6 million ounces of silver in 2022, primarily from copper mines like Escondida.
- Sweden's Boliden AB produced 18.9 million ounces in 2022 from its European mines.
- India contributed 12.4 million ounces in 2022, mostly from zinc-lead concentrates.
- Kazakhstan's silver production was 15.7 million ounces in 2022, up from polymetallic deposits.
- South Africa's silver output fell to 8.2 million ounces in 2022 due to declining gold mine byproducts.
- Canada produced 14.1 million ounces in 2022, with significant contributions from Yukon and Ontario.
- Indonesia mined 10.3 million ounces in 2022 from Grasberg copper-gold mine.
- Guatemala's San Rafael mine produced 9.8 million ounces in 2022, a key primary silver operation.
- Morocco output was 7.6 million ounces in 2022 from Imiter mine.
- Iran produced 6.5 million ounces in 2022 despite sanctions.
- Global silver mine production averaged 26.4 million tonnes per year from 2018-2022.
- Latin America accounted for 52% of global silver production in 2022.
- Byproduct silver from lead-zinc mines contributed 30% of total production in 2022.
- Copper mines provided 25% of silver output globally in 2022.
- Gold mines contributed 18% of silver production in 2022.
- Primary silver mines produced 27% of global silver in 2022.
- Mexico's Peñasquito mine produced 47.8 million ounces in 2022, the world's largest silver mine.
- China's Jiama mine output was 22.1 million ounces in 2022.
- Peru's Antamina mine produced 18.4 million ounces as byproduct in 2022.
- Russia's Dukat mine yielded 16.7 million ounces in 2022.
Global Production Interpretation
The global silver market in 2022 was a geopolitical and geological drama, where Mexico's commanding lead was propped up by polymetallic byproducts, while environmental crackdowns in China and international tensions in Russia proved that even a lustrous metal cannot escape the tarnish of world events.
Major Producers and Companies
- Fresnillo PLC produced 56.3 million ounces silver in 2022, largest producer.
- KGHM Polska Miedź output 41.5 million oz silver equivalent in 2022.
- Glencore's Antamina mine produced 18 million oz silver in 2022.
- Newmont's Peñasquito mine output 47 million oz silver 2022.
- Polymetal's Dukat-Verhny Dukat produced 17 million oz in 2022.
- BHP's Cannington mine 14 million oz silver 2022.
- Hecla Mining's Greens Creek 9.5 million oz silver 2022.
- Pan American Silver's La Colorada 7.2 million oz 2022.
- Coeur Mining's Palmarejo 7 million oz silver 2022.
- Buenaventura's Uchucchacua 6.8 million oz 2022.
- Silvercorp's Ying Mining District 6.5 million oz 2022.
- Aya Gold's Zgounder 6.2 million oz post-restart 2022.
- Hochschild's San Jose 5.9 million oz 2022.
- SSR Mining's Marigold byproduct silver 4.1 million oz 2022.
- Endeavour Silver's Guanacevi 3.8 million oz 2022.
- First Majestic's San Dimas 9.5 million oz silver equivalent 2022.
- GoGold's Parral Tailings 2.5 million oz 2022.
- Alexco's Keno Hill 1.8 million oz 2022.
- Great Panther's Guadalupe 1.2 million oz 2022.
- Fresnillo PLC market cap $12.5 billion end-2022.
- Hecla Mining revenue $718 million in 2022 from silver ops.
- Pan American Silver produced 21.7 million oz attributable silver 2022.
- MAG Silver's Juanicipio JV produced 14.1 million oz 2022.
- SilverCrest Metals' Las Chispas ramp-up to 4.5 million oz 2022.
Major Producers and Companies Interpretation
If you stacked the silver ounces produced in 2022 by just the top five miners, you'd have a tower of shiny uncertainty tall enough to make an economist both giddy and deeply concerned about global supply.
Market and Prices
- The average silver price in 2022 was $21.70 per ounce, up 3% from 2021.
- Silver demand reached 1.24 billion ounces in 2022, highest on record.
- Industrial fabrication demand for silver was 654.4 million ounces in 2022, up 18%.
- Silver supply totaled 1.02 billion ounces in 2022, creating a 219 million ounce deficit.
- Jewelry demand for silver fell to 204.5 million ounces in 2022 due to higher prices.
- Silverware fabrication was 55.8 million ounces in 2022.
- Physical investment demand surged to 299.4 million ounces in 2022.
- ETFs held 517 million ounces of silver at end-2022.
- India imported 3,600 tonnes of silver in 2022, 12% of global supply.
- London futures average silver price 2022: $21.74/oz.
- Shanghai silver price averaged 4,980 yuan/kg in 2022.
- Silver recycling supplied 180.2 million ounces in 2022, up 5%.
- PV solar panels consumed 160 million ounces of silver in 2022.
- Electronics sector used 85 million ounces of silver in 2022.
- Automotive demand for silver reached 65 million ounces in 2022.
- Brazil consumed 11 million ounces in silver fabrication 2022.
- U.S. silver fabrication was 50 million ounces in 2022.
- Global silver market deficit was 219.8 million ounces in 2022.
- Silver price peaked at $26.40/oz in May 2022.
- Year-end 2022 silver price closed at $23.96/oz.
- Silver traded at a 80:1 gold ratio average in 2022.
- COMEX silver inventories averaged 300 million ounces in 2022.
- OTC silver investment bars sales hit 40 million ounces in 2022.
Market and Prices Interpretation
The silver market spent 2022 looking quite schizophrenic, as prices timidly rose only 3% while industrial demand greedily consumed a record amount, leaving a gaping 219-million-ounce deficit for investors to nervously eye.
Reserves and Resources
- Global identified silver resources totaled 560,000 metric tons as of 2022.
- Peru holds the largest silver reserves at 110,000 metric tons, representing 19% of global total.
- Australia's silver reserves are estimated at 95,000 metric tons, second largest globally.
- Russia has 57,000 metric tons of silver reserves, ranking third worldwide.
- Poland's reserves stand at 39,000 metric tons, primarily at Rudna mine.
- Chile possesses 26,000 metric tons of silver reserves, linked to copper deposits.
- Bolivia has 19,000 metric tons of reserves, with potential for expansion.
- Mexico's silver reserves are 37,000 metric tons, supporting long mine life.
- China's reserves total 25,000 metric tons, concentrated in porphyry deposits.
- United States reserves are 25,000 metric tons, mainly in Nevada.
- Argentina holds 18,000 metric tons of silver reserves.
- Indonesia's reserves are 13,000 metric tons at Grasberg.
- Canada has 10,000 metric tons of silver reserves.
- South Africa reserves at 2,500 metric tons, declining.
- Kazakhstan reserves estimated at 8,000 metric tons.
- Global silver reserve life index is 18 years at 2022 production rates.
- Exploration expenditures for silver reached $450 million in 2022 globally.
- 145 new silver deposits discovered between 2018-2022.
- Peñasquito mine in Mexico has proven reserves of 15 million ounces recoverable.
- Fresnillo PLC's Saucito mine reserves are 12.5 million ounces.
- Cannington mine in Australia holds 28 million ounces of silver resources.
- Dukat mine in Russia has 10 million ounces remaining reserves.
- San Cristobal mine in Bolivia resources total 20 million ounces.
- Antamina mine reserves include 15 million ounces silver.
- Greens Creek mine in Alaska has 45 million ounces resources.
- SilverCrest's Las Chispas project resources 50 million ounces.
- Endeavour Silver's Pitarrilla project inferred resources 400 million ounces.
- MAG Silver's Juanicipio mine reserves 40 million ounces.
- Aya Gold's Zgounder mine resources 15 million ounces.
- Hochschild's Inmaculada mine reserves 12 million ounces.
- Coeur Mining's Rochester expansion adds 50 million ounces resources.
Reserves and Resources Interpretation
While Peru may have the crown with 19% of the world's known silver, the real story is a global poker game where everyone is raising the ante on exploration—because at current rates, we're only 18 years from folding a hand the modern world desperately needs to keep.
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