Australia’s Cannington mine was the world’s largest silver producer, prior to 2011. Fresnillo PLC controls a number of both gold and silver mining operations and owns the Fresnillo mine, the world’s second largest silver producer. 2011 saw silver ore grades in both mines drop significantly, lowering their silver production by double digits.
Polish copper mining interest, KGHM Polska Miedz moved from the ninth largest world silver producer, into first place in 2011. BHP Billiton, second largest silver miner also dropped in production, and was also overtaken by the Polish company. The drop in production at the Cannington mine was to blame for Billiton’s decreased output.
Future precious metals output by the top silver producers will likely be impacted by dropping petroleum fuel exports and fluctuating diesel prices. Diesel is the main fuel that powers mine production. All top producing silver mines expect to increase diesel consumption. Tonnage of processed ore has already declined in relation to the amount of diesel fuel consumed.
http://www.silverseek.com/article/critical-factors-will-impact-silver
