Credit: PD Photo

Chile is the world’s fifth-highest silver mining country. It produced 54 million oz of silver in the year 2014, which was a record high.

COCHILCO – Chile’s Ministry of Mines recently released the data of silver production for May 2017. It is interesting to note that silver production took a huge dip by 32% to 97.1 metric tons (3.1 million oz) versus 141.9 metric tons (4.6 million oz) produced in May 2016. The ministry further forecasts that the total production for 2017 is expected to decline below 40 million oz.

One reason for such a drastic reduction in silver production was the labour union strike and total shutdown of the huge by-product silver Escondida Copper Mine. But silver production at Escondida was down only by 38 metric tons (1.2 million oz) during the first six months of the year 2017, which is very small compared to the total 170 metric tons (5.5 million oz) decline.

Also, global silver production has been on the decline since 2015, which saw an all-time high of 891 million oz. As per the experts, there will be a 2 to 3% decline in global silver production this year; this means the total silver production will be in the range of 850-865 million oz.