According to a report by Mining.com, the latest forecast from The Silver Institute predicts that global mine silver production in 2023 will decline by 2% from the previous year to 820 million ounces, due to reduced output from the largest producing countries, Mexico and Peru.
　　“Affected by the strike, Newmont’s Peñasquito mine was shut down in the second and third quarters, resulting in a 16-million-ounce reduction in Mexico’s silver production,” said the World Silver Institute.
　　“Even so, the output from major silver mines will still rise this year, thanks to increased production at MAG Silver’s Juanicipio silver mine.”
　　Silver has a wide range of industrial applications, including in electronics and solar panels. As the world gradually moves away from fossil fuels, demand for silver is set to rise.
　　Newmont, the world’s largest gold mining company, resumed production at its Peñasquito silver mine in Mexico in October.
　　The mine is also Mexico’s largest gold mine; during the four-month shutdown, it suffered daily losses amounting to millions of dollars.
　　The decline in its output was partially offset by the commissioning of the Juanicipio silver mine in Zacatecas, operated by Fresnillo and MAG Silver.
　　This report was jointly prepared by the World Silver Institute and Metal Focus, a precious metals consulting firm. It is projected that silver shortages will continue this year, marking the third consecutive year of such shortages.
　　“140 million ounces—though about 45% below the record high reached in 2022—still remain above historical norms,” the author said.
　　The World Silver Institute also emphasized that Metal Focus believes the supply gap will persist in the foreseeable future.
　　Metal Focus forecasts this year’s average silver price to be $23.10 per ounce, an increase of 6%.
　　In 2022, the world’s top silver-producing countries included Mexico, China, Peru, Poland, and Russia. Fresnillo, KGHM Polish Copper, Newmont, Glencore, and Hindustan Zinc are among the world’s largest silver producers.