Juanicipio Project Update

Mexico holds a distinguished position as the world’s leading silver producer, contributing approximately 23% of global output in 2022, a key contributor to the country’s economic growth. Key mining states such as Zacatecas, Chihuahua, and Durango are driving production, but face regulatory challenges to sustain the industry, says George Paspalas, CEO, MAG Silver.

“Juanicipio is one of the highest-grade silver mines globally, boasting a 4,000t/d processing facility and producing 18Moz of silver annually on a 100% basis,” states Paspalas. The mine, operated by Fresnillo PLC, benefits from being in the Fresnillo belt, one of the most productive silver belts in the world. Beyond its current production, Juanicipio has a multi-decade mine life with further upside potential, as geological indicators suggest the presence of additional high-grade mineralization.

However, there is a persistent supply deficit due to rising industrial demand and declining inventories, notes Paspalas. “We are witnessing one of those classic economic scenarios: rising demand, constrained supply, and falling inventories,” he explained. Silver’s use in photovoltaic cells, electronics, and high-tech applications continues to expand, creating upward price pressure.

Mexico hosts a quarter of all silver ever mined globally, with large-scale “elephant” deposits still being discovered. However, Paspalas stressed that realizing this potential requires a collaborative effort between the industry, government, and local communities. “A real sustainability strategy is about building opportunities that do not depend on the mine,” says Paspalas. “(The industry) needs to foster local businesses, education, and capacity-building programs that will endure beyond Juanicipio’s timeline.”

However, regulatory hurdles have slowed mining development in Mexico in recent years. Paspalas urges the new administration to address permitting delays and environmental approvals to support responsible mining. “Mexico has a tremendous future in silver mining, but we need the right framework to execute,” he emphasizes. “We are hopeful that regulatory shifts will allow us to leverage renewable sources more effectively.”