U.S. silver mine production totaled about 1,160 metric tons in 2011

U.S. silver mine production totaled about 1,160 metric tons in 2011, down from 1,270 tons in 2010, with an estimated value of $1.27 billion, said the U.S. Geological Service late Monday.

Total output from domestic and foreign ores and concentrates, and from old and new scrap was an estimated 6,500 tons, from 21 U.S. refiners of commercial-grade silver, they said.

Alaska remained as the country’s leading silver-producing State, followed by Nevada, the agency said, adding that silver was produced as a byproduct from 35 domestic base- and precious-metal mines.

The reduction in domestic silver output stemmed from production drops at the Bingham Canyon mine in Utah, and at the Red Dog mine in Alaska, USGS said. Despite higher mill throughput, lower ore grades reduced production at the Greens Creek mine in Alaska and at the Lucky Friday mine in Idaho, they said. “At the Lucky Friday Mine, mine exploration and mining from new ore zones continued. Production of gold and silver from its leaching operations was expected to extend mine life by 8 years,” the agency said.

The reduction in primary output was offset by a rise in secondary supply. In 2011, approximately 1,700 tons of silver was recovered from new and old scrap, including 60 to 90 tons of silver reclaimed and recycled annually from photographic wastewater. In 2010 secondary recycling totaled 1,590 tons, they said.

Through September 2011, silver prices averaged $36.39 per troy ounce, based on Handy & Harman prices. “The overall rise in silver prices corresponded to continued investment interest and the surge in fabrication demand for industrial applications. Holdings in silver exchange traded funds, including an ETF that began in 2010 and was focused on the performance of companies involved in silver exploration, mining, and refining, have continued to increase since the first silver ETF was established in April 2006. Silver ETF inventories totaled 17,730 metric tons at the end of October,” USGS said.

The agency said industrial demand for silver in photography continued to decline, falling to slightly more than 600 tons. Silver’s use in jewelry and silverware increased slightly, as has the metals use in electronics and medical applications increased.

Outside of the U.S., global silver mine output rose to a new record of 23,800 tons as a result of increased production at primary silver and lead-zinc mines, the agency said.

Mexico remains the world’s biggest silver producer, as output from the Palmarejo mine, which is primarily a silver mine, and Peñasquito, primarily a lead-zinc mines contributed to Mexico’s dominance.

Production increases also took place in China and Australia, they said. – Kitco

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Posted by Silver Guru on Jan 31 2012. Filed under Silver Analysis. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry