JOHANNESBURG (miningweekly.com) – Global silver mine production dropped by 0.6% year-on-year 885.8-million ounces in 2016 – the first decrease since 2002, according to the ‘World Silver Survey’ compiled by GFMS Thomson Reuters on behalf of the Silver Institute.
Total silver supply decreased by 32.6-million ounces to 1.01-billion ounces in 2016 in line with decreased demand for the precious metal, with falling jewelry, coin and bar and industrial consumption contributing to an 11% decline.
This was driven by lower by-product output from the lead/zinc and gold sectors, as well as a sharp decline of scrap supply to the market, which hit its lowest since 1996.
Primary silver mine production grew by 1% to realise 30% of total silver mine output last year. Lead/zinc mines contributed 35% of 2016 by-product output, followed by copper mines at 23% and gold mining at 12%.
Demand, meanwhile, fell by 11% year-on-year to 1.03-billion ounces, dragged lower by weaker jewellery, silverware and retail investment.
Silver jewellery fabrication declined 9% to 207-million ounces, while demand for silverware decreased by 17% year-on-year to 52.1-million ounces.
Silver prices had average $17.14/oz in 2016, a 9.3% increase year-on-year.