Mexico remained the world leader in silver production in 2024, with 185.7 million ounces.
Precious metals mining is dominated by a few large companies with global operations that build and manage mines.
In parallel, there is a fragmented group of smaller companies that focus on the early stages-exploration, discovery and resource definition-through drilling and other techniques. These junior companies often partner with the majors to finance and bring their projects into production.
World leader in silver production
In 2024, Foreign Direct Investment (FDI) in metallic mineral mining in Mexico fell at a year-on-year rate of 82.8%, to US$360 million, according to data from the Ministry of Economy.
Nevertheless, Mexico has comparative advantages in the sector. Its geological reserves are extensive. In addition, it has high grade deposits in Zacatecas, Chihuahua, Durango and Guanajuato. It also has more than five centuries of mining tradition.
As a result, it has solid local know-how. This knowledge is reinforced by universities and specialized research centers. At the same time, the infrastructure -roads, energy and water– and a network of consolidated suppliers optimize times and reduce logistics costs.
In parallel, it enjoys a competitive regulatory framework. Although regulations have become more restrictive, they have become more restrictive. Thanks to tax incentives and free trade agreements, exports and imports of inputs have been expedited. On the other hand, skilled labor offers lower costs than in the United States, Canada or Australia.
All mining concessions are now awarded through public bidding. In addition, holders must obtain environmental, social and labor permits before receiving the concession.
The term of concessions has been reduced from 50 to 30 years. Subsequently, there is a single renewal option for an additional 25 years.
World extraction
Hycroft Mining Holding Corporation indicated that world silver production in 2024 fell by about 1% compared to 2023, reaching about 824 million troy ounces, which represented 82% of the global supply of 1,004 million troy ounces. Total demand stood at approximately 1,219 million troy ounces, with an estimated value of US$34.5 billion.
As for demand by sector in 2024:
- Electricity and electronics: 40 percent.
- Investments: 17 percent.
- Jewelry: 17 percent.
- Other industrial sectors: 14 percent.
- Silverware: 5 percent.
- Photography: 2 percent.