Precious Metals
January 28, 2025
2 min
Precious Metals
%20Main.avif)
South America has long been a dominant force in global silver production, with Peru, Bolivia, and Argentina leading the way. However, despite its continued significance, the region saw a notable 15.67% decline in silver output between 2014 and 2023. Below, we explore the key factors behind this downturn and highlight the countries that maintained stable production levels.
The Escobal Mine Shutdown: A Major Setback
A key factor in the decline was the 2017 closure of the Escobal mine in Guatemala. Once one of the world’s largest silver mines, Escobal produced 27 million ounces (Moz) annually. Its shutdown followed a ruling by Guatemala’s Supreme Court, which upheld claims by indigenous Xinca communities that the mine’s permitting process violated their rights. Despite efforts by Pan American Silver, which acquired the mine in 2019, ongoing legal and social disputes have kept Escobal closed, creating a significant gap in regional production.
%20Graph.avif)
Peru: Declining Output from a Silver Leader
Peru, South America’s traditional silver leader, experienced a 15% decline in production, falling from 126 Moz in 2014 to 107.1 Moz in 2023. Several factors contributed to this drop:
- Aging Mines and Lower Ore Grades: Many of Peru’s mines are maturing, leading to reduced output.
- Infrastructure Challenges: Inadequate infrastructure has hampered operations.
- Stricter Environmental Regulations: While important, these regulations have increased costs.
- Market Volatility and Reduced Investment: Fluctuating silver prices and lower investment have further strained the sector.
- COVID-19 Impact: The pandemic exacerbated existing challenges, causing shutdowns and labor shortages.
Bolivia and Chile: Stability Amid Decline
While Peru and Guatemala drove the regional decline, other countries maintained stable production levels. Bolivia’s output remained nearly unchanged, with just a 1.16% decrease, showcasing resilience. Chile, on the other hand, saw a 3.59% increase in production, bucking the regional trend.
Conclusion: A Path Forward
The 15.67% decline in South America’s silver production is the result of mine closures, resource depletion, economic instability, and social conflicts. However, with rising global demand for silver—driven by its use in technology and renewable energy—addressing these challenges is crucial. Policy reforms, infrastructure investment, and community engagement will be key to stabilizing and revitalizing the region’s silver mining sector.
Sponsored by:
Eloro Resources Ltd. is an exploration company focused on developing a world class silver and tin project in Bolivia's Potosí Department. Our flagship project, ISKA ISKA , ranks in the top five of global undeveloped resources in scale for both tin and silver. This truly significant grass roots discovery remains open in multiple directions with further potential to both expand and enhance. This world class deposit benefits not only from its proximity to infrastructure, but more importantly, from our connection to Bolivia through our management team and community involvement. Our goal at Eloro is clear - expand resources, attract partnerships, and establish itself as a key player in the mining sector. Learn more about Eloro Resources at https://elororesources.com/
Source: World Silver Survey 2024
The information presented here may contain inaccuracies and is subject to rounding. We do not guarantee that all information is complete or correct. We accept no responsibility for any errors, omissions, or outcomes resulting from the use of this information. This is not investment advice.
Explore More
View All
Solar Is Silver's Largest Industrial Market, and Not Easily Replaced
Solar Is Silver's Largest Industrial Market, and Not Easily Replaced
When LONGi Green Energy, the world's largest solar module maker, told investors on January 5, 2026 that it would begin mass-producing base-metal solar cells in the second quarter, it put a number on a pressure the whole industry feels. Solar is the largest single application within silver's industrial demand, and as the metal ran to a record above $121 an ounce in January, rising silver costs pushed manufacturers to accelerate efforts to reduce the metal per cell.
Silver in the Data Center: How AI's Power Crunch Is Building a New Pillar of Industrial Demand
Silver in the Data Center: How AI's Power Crunch Is Building a New Pillar of Industrial Demand
In early 2026, the artificial intelligence narrative shifted abruptly from software capabilities to physical hardware constraints. With tech giants committing hundreds of billions to new infrastructure—pushing global hyperscaler capital expenditures past $600 billion this year—the industry has collided with a new primary bottleneck: a severe power and thermal crunch.
Silver's Use Cases: A Visual Guide to Where the Metal Actually Goes
Silver's Use Cases: A Visual Guide to Where the Metal Actually Goes
Somewhere inside a pressurized-water reactor, an alloy that is four-fifths silver is absorbing neutrons to keep the core in check, a job most silver investors have never heard of. It is a useful reminder that the metal people picture as coins and jewelry mostly works elsewhere, across industry.
Ranked: The Countries That Produced the Most Silver in 2025
Ranked: The Countries That Produced the Most Silver in 2025
Mexico remained the world's top silver-producing country in 2025, mining 172.9 million ounces (Moz), roughly a fifth of global supply, according to the World Silver Survey 2026, produced for the Silver Institute by Metals Focus. But Mexico's lead narrowed: its output fell 5% for a third straight year, while second-place Peru climbed 7%. Global mine production rose 3% to 846.6 Moz, even as the ranking's top tier told a story of one leader sliding and its closest rival closing in.
