A Look at Silver Production Changes Across Continents (2014 vs. 2023)

From electronics to jewelry, silver plays a crucial role in modern life. But where does it all come from? An analysis of silver production between 2014 and 2023 reveals significant changes across continents, particularly in South America, Europe, and Oceania. In this article, we take a closer look at these changes.

Central and South America: A Significant Dip

Silver production in Central and South America fell significantly from 285.3 million ounces in 2014 to 240.6 million ounces in 2023. This drop was largely due to the 2017 shutdown of Guatemala's Escobal mine, which had produced roughly 27 million ounces annually. Adding to the region's woes, Peru, a traditional silver powerhouse, saw its own production plummet by 15% during the same period, falling from 126 million ounces to 107.1 million ounces. Peru's decline stemmed from a combination of factors: aging mines with lower ore grades, inadequate infrastructure, stricter and more expensive environmental regulations, market volatility and reduced investment, and the pandemic's impact, including shutdowns and labor shortages.

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Europe: Modest Growth Reflecting Regional Dynamics

European silver production increased due to expanded mining operations, higher base metal output, and strategic policies. Countries like Poland and Sweden saw growth, with KGHM Polska Miedź in Poland remaining a top global silver producer, benefiting from increased copper-silver mining. Since much of Europe’s silver comes as a byproduct of copper, lead, and zinc mining, rising global demand for these metals naturally boosted silver production. Additionally, to reduce reliance on foreign resources, European nations and the EU promoted domestic mining through policies securing critical raw materials.

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Africa: Emerging Potential, Measured Growth

Africa's silver production showed a slight upward trend, going from 15.4 million ounces in 2014 to 18.1 million ounces in 2023. It was primarily due to the ramping up of mining operations in certain countries. For instance, in Botswana, the Khoemacau mine reached full production capacity, significantly contributing to the continent's overall output. Despite these developments, Africa's share in global silver production has remained relatively modest. In 2021, the continent accounted for about 1.4% of worldwide silver output.

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Oceania: A Significant Reduction Demands Attention

Between 2014 and 2023, Oceania's silver production declined due to several key factors. Australia's output dropped significantly, with a 9.9% decrease in 2022 alone, bringing total regional production down to 41.4 million ounces. Rising production costs, including higher fuel prices and labor shortages, made silver mining less economically viable. Additionally, despite growing global demand, a supply deficit and increased operational expenses discouraged investment in silver mining operations. These challenges combined to drive the overall decline in silver production across Oceania.