By-Product Silver Production ? Introduction

Around two-thirds of world silver mine production comes from mines where the majority of ex-mill revenue is obtained from other metals. In this talk I will illustrate the importance of this output of silver as a by-product of the mining of various base metals. I will also consider the impact of relative changes in base and precious metal prices on mill-head revenue, and therefore, on production decisions. During the latter half of 1982 improving silver prices encouraged re-openings at several base metal mines. Thus some production of lead, zinc and copper can be regarded as partly conditional on the prevailing silver price. Conversely, a good deal of silver production can be considered to be independent of the silver price and dependent on the production of some base metal. It is the degree to which the value of silver mined affects the revenues of nominally, base metal, producers that is the central concern of this presentation.