According to a new report released by GlobalData, the global contagion impacted silver production the most while gold mine supply fared the best. The two largest silver producing countries, Mexico and Peru, have issued temporary shutdowns lasting nearly two months.
Peru, which started its lockdown on March 15th, extended it last week to end on May 10th. The Mexican Government issued their temporary shutdown on March 30th and have also extended it to May 30th. With Mexico and Peru on lockdown, a considerable amount of silver mine supply has been curtailed.
I came across this data from the Kitco.com article by Anna Golubova, COVID-19 mining shutdowns hurt silver production the most, gold the least – report:
The latest report from GlobalData looked at different mining sectors and how they have been affected across the globe. Silver fared the worst, while gold was hurt the least out of all the major mining sectors the report looked at.
There were temporary shutdowns introduced by more than 1,600 mines across 32 countries as of April 3, the report stated. Since then, the total mine shutdown have already dropped to 729, GlobalData added.
… At the end of the day, silver production was hit the most by temporary shutdowns. As of April 27, there were an equivalent of 65.8% of yearly global silver production still on hold, GlobalData identified.
As the GlobalData reports, nearly two-thirds of current global silver mine supply was still on hold. So, it depends on how long these primary and by-product silver mines have been offline.
Here is a chart using the data from the article linked above:
…click on the above link to read the rest of the article…