Silver Output Maintains Mexico as the World’s LeaderBy Antonio Trujillo | Thu, 09/30/2021 - 11:55
Mexico’s silver production has increased contributing to the country’s position as the world’s leading silver producer.
Industry analysts and shareholders are hopeful and optimistic that 2021 will be an even better year for silver production, topping Mexico’s 2020 output of 5,541 tons. In contrast, the other two top silver producers China and Peru, had an output of 3,443 tons and 2,991 tons respectively. Though global production totaled at 25,516 tons, a 3.7 percent decrease from the previous year, Mexico’s potential is nevertheless boosted by growing demand and a healthy market. Prices, for instance, are expected to be at a good level for the remainder of 2021.
Last year saw unprecedented interruptions to economic activity in all sectors at all levels, due to sanitary control measures put in place by governments around the world, consisting mostly but not limited to mobility restrictions. Nevertheless, the mining industry in Mexico has numbers to cherish and brag about, for instance, in 2020 Mexico maintained its position as the world's Top silver producer in the world.
Given that the mining industry in Mexico positions itself every year as one of the most important generators for the national economy, recovery stands as one of the foremost objectives for actors across its ranks, from companies to the government. The Silver Institute (SI) is forecasting an increased demand for the mineral worldwide as the industrial sector, its primary consumer, is expected to rise from the slowed down economies; but most importantly, despite the challenges posited by COVID-19, Mexico continues to be the world’s Top silver producer.
Analysts are warning nonetheless about the necessary conditions needed to have Mexico reap all the benefits from its industry: long-term and successful exploration projects, and especially, regulatory certainty. Mining stakeholders agree it is difficult to pinpoint the exact reasons for the promising silver numbers in Mexico. “What is more important is that people recognize this potential and, crucially, know where to look in their exploration efforts. Experts already note that silver has been bullish for a while now, but that demand could grow even further in the long term,” said Peter Megaw, CXO of MAG Silver, during his participation in MBN’s Mexico Mining Forum 2021.
Mexico has been at the helm of silver production since the times of colonial rule. According to analysts, historical global output has been at 48 to 50 billion ounces, of which a whopping 12 billion have come from Mexico alone. In fact, it was silver and its commercialization that sustained a great deal of the Spanish Empire’s economy for several centuries, a reality that has been cited as the reason to deem silver the “economic heart” of the nation.