India is set to become a major silver producer and the country’s largest zinc producer, Hindustan Zinc, part of the Vedanta Resources group, will play a major role, with the firm increasing its silver production to 500 tonnes in the next four years. At present, India imports three-fourths of its silver requirements.
The country’s average silver demand is over 3,000 tonnes annually. Of this, only 100 tonnes is produced in the country and over 500 tonnes is met through recycled silver. The rest is imported.
“We are increasing our production, from about 100 tonnes to over 500 tonnes by 2013. This will boost the ancillary industry in the country,” said Akhilesh Joshi, chief operating officer, Hindustan Zinc.
Silver is a co-product of Hindustan Zinc and comes out with lead. Zinc-lead mines are present only in Rajasthan and are owned by Hindustan Zinc. The Sindesar Khurd mine of the company is known for its rich silver content and currently under expansion.
In India, Hindalco produces nearly 50 tonnes of silver.
Once HZL’s expansion plan is completed, it will become the largest primary silver producer in Asia by 2013. As per data from the Silver Institute, a leading silver research firm based in London, the global silver mine production rose by 4 per cent in 2007, with strong gains reported from Chile, China and Mexico.
Silver mine production reached 20,674 tonnes last year. Peru was the world’s biggest silver mining country with 3,462,000 tonnes, followed by Mexico, China, Chile and Australia.
At present, India is way behind with just 89 tonnes of silver produced in 2007 whereas the demand stands at 3,000 tonnes. Major demand for the white metal stems from industrial use (50 per cent), jewellery and silverware (39 per cent), coins and medals (9 per cent) and about 1 per cent from photo film makers.
