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DMN Silver and Production

Mine Production registered a 4% increase year-on-year to achieve a record high of 634.4 Moz. The world's four largest silver producing countries, namely, Mexico, Peru, Australia, and China all posted strong growth in 2004. Improvements in Russia and, to a lesser extent, in Chile further boosted the figure.

In many instances, silver occurs in ores along with gold, copper, lead, zinc and other metals. In many mines, the primary product is one of these metals, with silver being a by-product.

In 2004, silver produced at primary mines increased by a significant 9% year-on-year to reach 188.5 Moz, representing 30% of world silver production, with the balance originating from copper (26%), gold (12%), and lead/zinc (32%). This is, in part, a consequence of the scarcity of large silver deposits, which can be economically exploited at prevailing silver prices. However, the dominance of by-product or co-product silver in total mine supply testifies to the fact that silver often occurs naturally with a variety of other metals. Silver is typically found in the oxidized zones of ore deposits, or in the hydrothermal veins associated with sulfide ores. This natural association with lead and zinc (which often occur together), gold and copper, results in significant quantities of silver being produced at operations where it is not the primary target nor the principal earner of revenue - in fact, in many cases silver is regarded as a "bonus".