MINEX Forum

Tag: silver production

  • KGHM Confirmed as World’s Second-Largest Silver Producer With 1,347 Tonnes Output as Polish Miner Expands Rudna Mine

    KGHM Confirmed as World’s Second-Largest Silver Producer With 1,347 Tonnes Output as Polish Miner Expands Rudna Mine

    Polish state-controlled mining giant KGHM has been ranked the world’s second-largest silver producer, generating 1,347 tonnes of the metal in 2025 — placing it behind only Mexico’s Fresnillo, which produced approximately 1,517 tonnes, according to the World Silver Survey, the industry’s longest-running annual market report now in its 36th year.

    Global silver production exceeded 26,000 tonnes in 2025, the survey found, with KGHM’s output reflecting the scale of its integrated mining complex in southwestern Poland. Silver is produced as a by-product of copper extraction at the company’s Lubin, Rudna and Polkowice-Sieroszowice operations and refined at the Głogów smelter, which has been processing precious metals from copper ore since 1993. The company sells silver in granulated form for industrial customers and as bullion bars primarily supplied to financial institutions, with smaller bars for private investors introduced last year.

    KGHM chief executive Remigiusz Paszkiewicz said the ranking reflected sustained effort rather than a single strong year. “This is not a one-time success, but the result of consistently building operational and technological advantage,” he said.

    Silver’s industrial importance continues to grow, with applications in electronics, renewable energy, medicine and jewellery accounting for nearly 60% of global demand — a figure that underpins the metal’s long-term strategic value alongside its role as a financial asset.

    Beyond silver, KGHM ranks among the world’s top ten copper producers and operates assets across Europe and the Americas, including in the United States and Canada. The Polish state holds just under a third of the company’s shares, making it the largest single shareholder.

    On the capital investment front, KGHM is expanding the Rudna mine in Lower Silesia — one of the world’s largest copper operations — with plans to sink a new shaft that could take up to 12 years to complete. The project carries a price tag of several billion zloty, with the final cost dependent on depth, eventual use and other technical factors.

  • Poland’s KGHM Sits at the Heart of Europe’s Copper and Silver Supply as Global Demand Surges Toward a Critical Shortfall

    Poland’s KGHM Sits at the Heart of Europe’s Copper and Silver Supply as Global Demand Surges Toward a Critical Shortfall

    Thousands of metres below the flat plains of western Poland, in tunnels stretching for hundreds of kilometres under suffocating heat, workers at KGHM’s Polkowice-Sieroszowice mine are extracting what geologists increasingly describe as the metals of the future — copper and silver whose strategic importance to the global economy has never been greater.

    Poland supplies between 40% and 50% of Europe’s copper, making it the continent’s dominant producer. KGHM, the state-backed metals giant that operates three underground mines alongside local smelters and operations in the Americas, ranked eighth globally in copper extraction volume last year, behind BHP, Glencore and Rio Tinto. It is also the world’s second-largest silver producer. In 2025, the group generated more than 36 billion zlotys ($9.7 billion) in revenue, producing 710,000 tonnes of copper and 1,347 tonnes of silver.

    The timing of that output matters enormously. Global copper demand is forecast to rise by more than 40% by 2040, according to a 2025 UN report, driven by the accelerating electrification of transport, the buildout of renewable energy infrastructure and surging demand from artificial intelligence data centres and defence industries. An electric vehicle contains around 80 kilograms of copper compared with 20 kilograms in a conventional car, while a single wind turbine requires between four and ten tonnes per megawatt of installed capacity. The International Energy Agency projects that supply will lag 30% behind demand as early as 2035, a gap that could require 80 new mines and $250 billion in investment by 2030.

    At KGHM’s Glogow smelter, ore is melted in furnaces at 1,200 degrees Celsius before emerging as 99.99% pure copper plates, each weighing more than 100 kilograms, which are then shipped to buyers around the world. The process underscores the vertically integrated nature of Poland’s copper industry — from extraction through refining to export — a model that gives KGHM and Poland unusual strategic weight within the European supply chain.

    That weight is being felt at the geopolitical level. Copper now appears on the strategic critical metals lists of the European Union, the United States and China simultaneously. In July, US President Donald Trump announced a 50% tariff on copper, citing national security grounds and the metal’s centrality to Pentagon procurement. Prices surged 41.7% in 2025, hitting a record $14,527.50 per tonne in January of this year, and remain elevated at around $12,000 per tonne despite the Middle East conflict and global economic headwinds.

    KGHM vice president for finance Piotr Krzyzewski framed Poland’s position in explicitly continental terms: “It’s no longer about the security of our country alone, but the security of all of Europe.” The group’s known resources are estimated to sustain operations for at least 40 years, independent of new exploration and concession activity. Water consumption at the scale required for deep mining remains a vulnerability as climate change intensifies drought risk across Central Europe.

  • Adriatic Metals Boosts Q2 Output But Lowers Full-Year Forecast Amid Dundee Takeover

    Adriatic Metals Boosts Q2 Output But Lowers Full-Year Forecast Amid Dundee Takeover

    Adriatic Metals (ASX, LON: ADT) reported notable gains in silver and gold production for the second quarter of 2025, while trimming its full-year production outlook ahead of its acquisition by Canada’s Dundee Precious Metals (TSX: DPM).

    The company, which operates the Vareš silver-zinc-lead project in Bosnia and Herzegovina, said silver equivalent output reached 1.7 million ounces in Q2—up 23% from the previous quarter. This included 720,449 ounces of silver and 4,840 ounces of gold, reflecting strong performance gains compared to Q1.

    Zinc and lead output also increased, and Adriatic confirmed that commercial production officially began at the Vareš operation on July 1. The Veovača tailings facility, completed in March, started receiving tailings in April, with a newly constructed connecting road going operational in June.

    Despite the operational momentum, Adriatic revised its full-year silver equivalent production forecast downward to 9.5–10.5 million ounces, compared to the earlier estimate of 12–13 million ounces. The company attributed the revision to operational and logistical ramp-up adjustments, while noting that the new range still reflects year-on-year growth.

    Adriatic ended the quarter with a cash balance of $59 million, down from $76 million at the end of March.

    The quarterly update follows Adriatic’s acceptance of a $1.25 billion acquisition offer from Dundee Precious Metals. The merger will see the combined entity headquartered in Toronto, with Adriatic’s UK office set to close.

    “Following the board’s recommendation to accept the proposed acquisition of Adriatic by Dundee Precious Metals, we remain committed to maintaining positive operational momentum throughout this transactional period,” said CEO Laura Tyler.

    Dundee’s acquisition of Adriatic is expected to strengthen its asset base in Eastern Europe and support long-term growth in gold and silver output across the region.

  • Adriatic Metals Reaches Commercial Production at Vareš Silver Mine in Bosnia

    Adriatic Metals Reaches Commercial Production at Vareš Silver Mine in Bosnia

    Adriatic Metals has officially achieved commercial production at its Vareš silver operation in Bosnia and Herzegovina, marking a major operational milestone for the company. The announcement follows the successful ramp-up of the processing plant, which reached sustained throughput levels of 75% over 14 days, including 80% over the last seven days, and hit 90% of nameplate capacity (2,000 tonnes per day) in late June.

    Key to unlocking production was the resolution of tailings-related challenges. Adriatic completed the construction of the Veovača tailings storage facility in March, with tailings deposition starting on April 2. A newly completed access road between the Vareš processing plant and the storage site has been operational for the past month.

    Underground development at the Rupice mine, the project’s high-grade core, is also progressing well. The company reported 900 metres of development in Q2, a new quarterly record.

    “We are proud to announce the achievement of commercial production at the Vareš silver operation, marking a significant milestone that demonstrates our ability to operate at production levels that support strong cash generation,” said Adriatic CEO Laura Tyler. She credited the company’s team and management for their dedication in bringing the project across the finish line.

    All critical permits, equipment, and personnel are now in place, ensuring the operation is positioned for continued success and consistent output.

  • Gold Ore Mining in Kazakhstan Increased by 14% in January 2025

    Gold Ore Mining in Kazakhstan Increased by 14% in January 2025

    The beginning of 2025 proved to be successful for Kazakhstan’s mining enterprises: in January, 3.42 million tonnes of gold-bearing ore were extracted, marking a 14.1% increase compared to the same period last year, according to a report by the Bureau of National Statistics.

    Gold concentrate production surged by 46.4% to 36,000 tonnes. However, due to the declining gold content in ores at major deposits, gold extraction showed a negative trend. As a result, companies produced 8.38 tonnes of unrefined and semi-refined gold, 16% less than in January 2024. Refineries produced 3.4 tonnes of gold, reflecting a 32.8% decline year-on-year.

    The situation is even more challenging for silver producers. The output of unrefined and semi-refined silver amounted to 32.55 tonnes, while refined silver production totaled 31.63 tonnes, both figures showing a 50% drop compared to the previous year.

    Meanwhile, Kazakhstan’s international reserves showed positive dynamics for the first time since September 2024. According to Zakon.kz, the growth was driven by an increase in net foreign exchange reserves, reaching $45 billion.

  • Adriatic Metals Announces $80M Equity Raising to Expand Vares Silver Operation

    Adriatic Metals Announces $80M Equity Raising to Expand Vares Silver Operation

    Adriatic Metals has announced a $80 million equity raising to support the expansion of its Vares Silver operation in Bosnia & Herzegovina. The company aims to strengthen its financial flexibility and accelerate growththrough a two-tranche institutional placement.

    The funds will be used to expand the processing plant and provide working capital. The equity raising is being facilitated by Canaccord Genuity, Stifel Nicolaus Europe, and RBC Europe, who are acting as joint lead managers.

    CEO Laura Tyler emphasized the importance of the capital injection, stating, “This equity raising will allow us to fast track the plant expansion and provide the financial flexibility needed for the final stages of ramping up to commercial production.”

    In its latest operational update, Adriatic Metals reported that ramp-up at the Vares Silver Operation is progressing, with 1,335koz silver equivalent produced in 2024. Commercial production is expected to begin in the first quarter, alongside a 63% increase in processing capacity to 1.3Mtpa.

    Orders for long-lead equipment are set to commence in the first quarter following the completion of an expansion study. The expansion is expected to establish Vares as one of the world’s largest primary silver producers, reinforcing Adriatic Metals’ position as a major player in the global mining industry.