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Mexico is top silver producer for fifth year

Production totaled 192.9 million ounces, well ahead of second-place Peru

Mexico continues to dominate world silver production, having been the top silver producer in 2014 for the fifth year in a row.

The Silver Institute’s World Silver Survey, released today, put Mexico’s output last year at 192.9 million ounces, an increase of 5.8 million ounces over 2013, a figure that widened the gap between this country and second-place Peru, whose production totaled 121.5 million ounces. Trailing Peru were China, Australia and Chile.

It was also a record production year for Mexico.

An increase in production at two mines — the Fresnillo mine at Saucito in Zacatecas and the San José mine in Oaxaca, owned by the Canadian firm Fortuna Silver Mines — contributed to the higher output.

One of the report’s authors, Thomson Reuters analyst Andrew Leyland, said the main producers continue to expand their capacity as their production costs decline — they dropped 16% on average last year.

Silver production was up despite a decline in silver prices, from US $23.70 an ounce in 2013 to $19.10 last year. But Leyland expects the lower prices to contribute to a decline in global production this year.

Source: El Economista (sp)

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