US silver mine output seen slipping
NEW YORK, Oct 29 (Reuters) - US silver mine production is forecast to fall to 56 million ounces in 1998, and then to 54 million in 1999, before output is seen rising again to 55 million ounces in 2001, according to the Silver Institute's new report, ''World Silver Production Forecast 1998-2001.''
In 1997 US silver production rose to 57 million ounces - a 13% increase from the previous year.
Roughly 19% of US silver production last year was generated by Echo Bay's(Toronto: ECO.TO) McCoy/Cover mine. Also during 1997, production rose at Coeur d'Alene Mines (NYSE: CDE) Rochester mine, as well as several other primary silver mines, including those owned by Sunshine Mining (NYSE: SSC).
But the US ranking as the world's third largest silver mining country will slip to fourth place in the next couple of years as Australian production surges.
Australia, which ranked eighth in world silver production in 1997, is expected to jump to third largest silver miner in 2000-2001.
Australia will benefit from the development of the mammoth Cannington mine, a silver-lead-zinc operation expected to produce 25 million ounces of silver annually.
But Mexico and Peru are forecast to remain the two largest silver producers in 2001, producing 115 million ounces and 68 million ounces respectively.
Last year was the ninth straight year that global demand for silver exceeded conventional supply (mining and recycling). Between 1990-1997, silver fabrication demand exceeded mine production by 2.2 billion ounces, which reduced above ground bullion inventories by more than one billion ounces. |
