Silver Output Hits Snags in Mexico, Peru, and Chile

The silver mining industry has taken a hit in three major countries - Mexico, Peru, and Chile. According to recent reports, Endeavour Silver's Terronera mine in Jalisco, Mexico was shut down for twelve days due to a community blockade. The Ejido community had concerns about road maintenance, medical services, water supply, and financial assistance, but the negotiations with the company were described as 'cordial and respectful'. Although operations resumed on August 24, the blockade resulted in the loss of approximately 0.08 million ounces of silver production.

In Peru, the decline in silver output was attributed to lower zinc grades in the ore treated at concentrator plants. The Peruvian statistics institute reported a 9% decrease in silver production in June compared to June 2025. Meanwhile, Chile's Antofagasta experienced an orderly shutdown due to severe rain and snow at its Los Pelambres mine, which is expected to take several months to recover.

The impact of these events on the global silver market is significant, as the three countries account for over 40% of world silver production. The combined effect of this month's incidents is estimated to be around 1.1 million ounces, equivalent to about 2.3% of the forecasted 46.3 million ounce deficit for 2026.