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SILVER

Indian Minerals Yearbook 2013

(Part- II : Metals & Alloys)

52nd Edition

SILVER

(FINAL RELEASE)

GOVERNMENT OF INDIA MINISTRY OF MINES

INDIAN BUREAU OF MINES

Indira Bhavan, Civil Lines, NAGPUR 440 001

PHONE/FAX NO. (0712) 2565471 PBX : (0712) 2562649, 2560544, 2560648

E-MAIL : cme@ibm.gov.in Website: www.ibm.gov.in

May, 2015

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SILVER

S ilver is one of the five noble metals. Itsbrilliant white colour, malleability and resistanceto atmospheric oxidation has enhanced its value as ahighly desired precious metal which is used in manyindustrial applications. Apart from its monetary anddecorative uses, its highest known electricalconductivity amongst all metals has increased itspotential in modern age applications; viz, for printedelectric circuits, coating for electronic conductorsand in alloys of gold and copper for electrical contacts.Its chloride and iodide are light-sensitive andhence used in photographic material. These two majoruses have contributed to increase supply of scrapof silver contained products.

In India, there are no native silver depositsexcept the small and unique Bharak deposit ofsilver in Rajasthan. It occurs generally with lead,zinc, copper and gold ores and is extracted as aby-product from electrolysis or chemical methods.

Silver is recovered as a co-product as wellas a by-product in the country. Silver was recovered inthe past as a co-product in gold refining at KGF Complexand Hutti Gold Mines in Karnataka, as a by-product insmelting and refining of lead, zinc and copperconcentrates at Chanderiya and Debari smelters inRajasthan, Tundoo and Moubandar (Ghatsila)smelters in Jharkhand and at Visakhapatnam smelter inAndhra Pradesh. The present production of silvercomes from Chanderiya lead-zinc smelter of HZL andfrom gold refinery of HGML. In addition, Hindalcoextracts silver as a by-product during smelting ofimported copper concentrates at Dahej in Gujarat.

The installed capacities for recovery ofsilver at various plants are: HCL 9.9 tpy, HZL518 tpy as per Annual Report- 2012-13 and Hindalco150 tpy. HZL has plans to increase the ore productioncapacity at Sindesar Khurd mine to 3.75 million tpy inthe next six years. Anode mud contains 40-50%manganese, 5-15% lead and 300 to 1000 ppm of silveramong other metals. A trial was conducted to recoverlead and silver from anode mud at Dariba mine. The Hot

15 Silver

Gas precipitator contains 400 ppm silver, a plant is beinginstalled and was expected to commission in 2013. Thework on development of the greenfield Kayad lead-zinc mine was also in progress as per schedule.

RESOURCESAs per the UNFC system, the total resources

of silver ore in the country as on 1.4.2010 wereestimated at about 466.98 million tonnes. Out ofthese, 187.56 million tonnes were placed underreserves category and 279.42 million tonnes underthe 'remaining resources' category.

The total resources of silver in the countryas on 1.4.2010 in terms of metal were estimated at27,628.25 tonnes, of which 8,039.57 tonnes areunder reserves and 19,588.68 tonnes are under the'remaining resources'.

By States, Rajasthan accounted for about87% resources in terms of ore, Jharkhand 5%,Andhra Pradesh 4% and Karnataka 2%. MadhyaPradesh, Uttarakhand, Odisha, Meghalaya, Sikkim,Tamil Nadu and Maharashtra together shared 2%ore resources (Table - 1).

PRODUCTIONSilver is recovered as a by-product from lead

and zinc concentrates, copper slime and as a co-product of gold refining.

During the year 2012-13, the production of silverat 3,74, 046 kg increased by 81% as compared to theprevious year due to higher recovery of silver atChanderiya. The production of silver from gold refiningwas 145 kg in 2012-13 as against 202 kg in 2011-12. Oneprivate sector and a public sector undertaking alsoreported production of silver during 2012-13.

In addition, Hindalco Industries Ltd reportedrecovery of 56,766 kg and 60,523 kg silver fromimported copper concentrates in 2011-12 and2012-13 respectively.

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Table 1 : Reserves/Resources of Silver as on 1.4.2010(By Grades/States)

(In tonnes)

Reserves Remaining resourcesTotal

Proved Probable Total Feasibility Pre-feasibility Measured Indicated Inferred Reconnaissance Total resourcesSTD111 (A) STD211 STD331 STD332 STD333 STD334 (B) (A+B)

STD121 STD122 STD221 STD222All India : Total

O r e 46109414 17655843 123793411 187558668 3375000 1048700 5404862 11140000 86286000 172171729 - 279426291 466984959Metal 1591.85 1949.65 4498.07 8039.57 270.00 27.60 54.30 1045.40 6212.66 11978.72 - 19588.68 27628.25

Andhra PradeshOre - - - - - - - - - 16950000 - 16950000 16950000Metal - - - - - - - - - 128.13 - 128.13 128.13

JharkhandOre - - - - - - - - - 23840000 - 23840000 23840000Metal - - - - - - - - - 5.22 - 5.22 5.22

KarnatakaOre 8681065 - - 8681065 - - 69462 - - 314150 - 383612 9064677Metal 2.67 - - 2.67 - - 0.48 - - 2.92 - 3.40 6.07

Madhya PradeshOre - - - - - - - - 2096000 1120000 - 3216000 3216000Metal - - - - - - - - 150.61 9.25 - 159.86 159.86

MaharashtraOre - - - - - - - - - 235000 - 235000 235000Metal - - - - - - - - - 0.23 - 0.23 0.23

MeghalayaOre - - - - - - - - 880000 - - 880000 880000Metal - - - - - - - - 19.80 - - 19.80 19.80

(Contd.)

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Reserves Remaining resourcesTotal

Proved Probable Total Feasibility Pre-feasibility Measured Indicated Inferred Reconnaissance Total resourcesSTD111 (A) STD211 STD331 STD332 STD333 STD334 (B) (A+B)

STD121 STD122 STD221 STD222

OdishaOre - - - - - 960500 119000 - - 670000 - 1749500 1749500Metal - - - - - 27.34 3.40 - - 34.17 - 64.91 64.91

RajasthanOre 37428349 17220000 123729631 178377980 3375000 88200 5216400 9240000 81580000 128042579 - 227542179 405920159Metal 1589.18 1934.40 4498.03 8021.61 270.00 0.26 50.42 883.80 6022.18 11757.93 - 18984.59 27006.20

Sikk imOre - 435843 63780 499623 - - - 300000 - 150000 - 450000 949623Metal - 15.25 0.04 15.29 - - - 27.60 - 13.80 - 41.40 56.69

Tamil NaduOre - - - - - - - - 330000 460000 - 790000 790000Metal - - - - - - - - 15.87 26.68 - 42.55 42.55

UttarakhandOre - - - - - - - 1600000 1400000 390000 - 3390000 3390000Metal - - - - - - - 134.00 4.20 0.39 - 138.59 138.59

Figures rounded off.

Table - 1 (Concld.)

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Table 2 : Principal Producers of Silver, 2012-13

Location of the plantName & address of the producer Name of

P lan t State Distr ict

M/s Hindustan Zinc Ltd, Chanderiya Rajasthan Chit torgarhYashad Bhavan,Udaipur 313 001.

The Hutti Gold Mines Co. Ltd, Hutt i Karnataka RaichurHutti, Dist - Raichur,Karnataka - 548 115.

Table 3 : Production of Silver, 2010-11 to 2012-13(By States*)

(Qty in kg; value in L '000)

2 0 1 0 - 1 1 2 0 1 1 - 1 2 2 0 1 2 - 2 0 1 3 ( P )State

Q t y Value Q t y Value Q t y Value

India 1 4 8 3 0 3 5 4 3 8 6 9 5 2 0 7 1 4 4 11561772 3 7 4 0 4 6 21233064Karnataka 2 2 1 8 6 2 7 2 0 2 1 1 4 9 5 1 4 5 7 9 8 6Rajasthan 1 4 8 0 8 2 5 4 3 0 0 6 8 2 0 6 9 4 2 11550277 3 7 3 9 0 1 21225078

*Excludes by-product recovery of silver by Hindalco Industries Ltd. at Dahej, Gujarat from imported copper concentrates.

Table 4 : Production of Silver*, 2011-12 and 2012-13(By Sectors/States/Districts)

(Qty in kg; value in L '000)

2 0 1 1 - 1 2 2012-13(P)State/Distr ict

Quant i ty Value Quant i ty Value

India 2 0 7 1 4 4 11561772 3 7 4 0 4 6 21233064Public sector 2 0 2 1 1 4 9 5 1 4 5 7 9 8 6

Private sector 2 0 6 9 4 2 11550277 3 7 3 9 0 1 21225078

Karnataka 2 0 2 11495 1 4 5 7 9 8 6

Raichur 2 0 2 1 1 4 9 5 1 4 5 7 9 8 6

R a j a s t h a n 2 0 6 9 4 2 11550277 3 7 3 9 0 1 21225078Chit torgarh 2 0 6 9 4 2 11550277 3 7 3 9 0 1 21225078

*Silver as a by-product:(i) In Karnataka, it is recovered at Raichur while refining of gold at Hutti and Uti gold mines.( i i) In Rajasthan, it is recovered at Chanderiya, Rajpura Dariba lead-zinc smelters of HZL.(iii) Exc ludes by-product recovery o f 56 ,766 kg and 60 ,523 kg s i lver f rom impor ted copper concentra tes in

2011-12 and 2012-13, respectively.

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SILVER

WORLD REVIEWThe total reserves of silver is estimated at

520,000 tonnes. Australia, Peru, Poland, Chile,China and Mexico are the main countries havingsilver reserves (Table-5). Major part of thereserves is associated with base metals, such ascopper, lead and zinc.

Mexico, China, Peru, Australia, Russia, Boliviaand Poland are the main producers of silver. Theglobal primary as well as by-product mine outputslightly increased to 25,161 tonnes of containedmetal in 2012 from 23,422 tonnes in the previousyear. World mine production of silver is given inTable-6.

AustraliaAustral ias lead, s i lver, and zinc mines

were predominantly based on ore bodies withzinc as the major component and lead andsilver as byproducts. An exception was BHPBilli tons Cannington underground mine, inthe State of Queensland, where lead and silverwere major components and z inc was aminor component.

BoliviaThe country was estimated to have produced

5% of the worlds total mine output of silver in2012. The leading mine in Bolivia was the SanCr i s toba l Mine . Produc t ion of s i lve r inconcentrates took place in both the lead circuitand the zinc circuit at the mine. In 2012, the SanCristobal Mine was reportedly the fifth rankedproducer of silver in the world and the sixth rankedproducer of lead and zinc.

ChileThe country was estimated to have been the worlds

seventh ranked producer of silver (mine output)contributing in 2012 about 4.7%, of world production.

Table 5 : World Reserves of Silver(By Principal Countries) (In tonnes of silver content)

Count ry Reserves

World Total (rounded) 5 2 0 0 0 0Australia 8 8 0 0 0

Bolivia 2 2 0 0 0

Canada 7 0 0 0

Chile 7 7 0 0 0

China 4 3 0 0 0

Mexico 3 7 0 0 0

Peru 8 7 0 0 0

Poland 8 5 0 0 0

USA 2 5 0 0 0

Other countries 5 0 0 0 0

Source: Mineral Commodity Summaries, 2014.

Table 6 : Mine Production of Silver(By Principal Countries)

(In tonnes of metal content)

Count ry 2 0 1 0 2 0 1 1 2 0 1 2

World Total 2 3 4 1 7 2 3 4 2 2 2 5 1 6 1

Argentina 694 7 0 2 750

Australia 1 8 8 0 1 7 2 5 1 7 5 7

Bolivia 1259 1216 1 2 0 7

Canada 5 9 1 5 7 2 7 0 5

Chile 1 2 8 7 1 2 9 1 1 1 9 4

China 3 0 8 5 3 2 3 2 3 6 3 9

Kazakhstan* 5 5 2 6 5 1 9 6 3

Mexico 4 4 1 1 4 7 7 8 5 3 5 8

Peru 3 6 4 0 3 4 1 9 3 4 8 0

Poland 1 1 8 3 1 1 6 7 1 1 4 9

Russia* 1 1 4 5 1 1 3 4 1 4 0 0

USA 1 2 7 0 1 1 2 0 1 0 5 5

Other countries 2 4 2 0 2 4 1 5 2 5 0 4

Source: World Mineral Production, 2008-12.* - Smelted and / or refinery production.

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SILVER

FOREIGN TRADEExports

There were no exports of silver ores andconcentrate in 2012-13. Exports of silver in2012-13 increased considerably to 74 tonnes from41 tonnes in the preceding year. Exports weremainly to Belgium and the USA. Besides, 563 kgsilver-clad base metals were also exported during2012-13 (Tables-7 and 8).

ImportsImports of silver were 2,015 tonnes in 2012-13

against 4,661 tonnes in the previous year. Importswere mainly from the UK (21%), Hong Kong &Republic of Korea (14% each), Chinese Taipei/Taiwan & China (10% each) and UAE (3%).Imports of silver-clad base metals were 639 kg in2012-13 as against 1174 kg in the previous year.The USA, Denmark, UK and Italy were the majorimporters (Tables-9 and 10).

Table 7 : Exports of Silver(By Countries)

2 0 1 1 - 1 2 2 0 1 2 - 1 3Country

Q t y Value Q t y Value( t ) (L 000) ( t ) (L 000)

Al l Countr ies 4 1 1 2 9 6 6 9 4 7 4 2 5 6 3 1 7 3

USA 1 1 4 7 4 8 0 3 2 0 9 5 6 0 7 5

Belgium 1 5 3 2 7 0 0 6 2 8 6 1 7 4 2 3

Switzerland - - 8 4 1 4 5 5 3

UAE ++ 1 6 2 6 3 2 9 3 1 0

Canada 2 4 4 0 3 4 2 5 1 1 3 4

Hong Kong 1 5 2 7 7 8 1 3 6 5 6 5

Sweden 1 2 4 1 8 7 1 2 2 0 8 7

Turkey ++ 2 5 7 ++ 1 9 0 5 6

Australia 4 2 4 8 8 8 5 ++ 1 8 5 7 3

I r an 1 4 1 0 8 8 ++ 1 5 9 9 4

Other countries 6 8 3 4 9 4 8 8 2 4 0 3

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Table 9 : Imports of Silver(By Countries)

2 0 1 1 - 1 2 2 0 1 2 - 1 3Country

Q t y Value Q t y Value( t ) (L 000) ( t ) (L 000)

Al l Countr ies 4 6 6 1 2 4 7 0 4 2 3 2 2 2 0 1 5 1 0 7 9 7 3 6 6 0

U K 8 9 1 47114906 4 2 3 21532239

Hong Kong 2 8 9 15835142 2 8 4 14675814

Korea, Rep.of 1 9 6 9 9 2 1 1 2 1 2 8 2 14253592

Chinese Taipei/Taiwan 5 3 3 29207476 2 0 8 10507522

China 4 3 5 23353616 1 9 5 10064997

Peru 1 3 6 6 8 1 2 3 8 5 7 0 9 8 4 8

UAE 1 5 1 8 1 3 9 7 6 3 6 6 3 4 2 4 3 6 8

Singapore 6 3 0 1 8 8 2 6 5 3 3 4 1 5 6 7

Finland 1 0 5 1 3 5 5 6 6 0 3 0 5 6 5 3 8

Turkey 3 4 1 8 0 6 1 5 9 4 9 2 5 1 2 5 9 3

Other countries 2 1 0 3 1 1 0 1 8 0 5 7 8 3 7 5 18894582

Table 8 : Exports of Silver-clad Base Metals(By Countries)

2 0 1 1 - 1 2 2 0 1 2 - 1 3Country

Q t y Value Q t y Value(kg) (L 000) (kg) (L 000)

Al l Countr ies 1 2 0 5 5 3 3 0 4 4 5 6 3 4 6 1 6

USA 1 7 8 1 2 0 3 6 1 5 3 2 4 3 3 1

Indonesia - - 3 0 2 7 7

Singapore - - 1 8

Other countries 1 0 2 7 4 1 2 6 8 3 - -

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Table 10 : Imports of Silver-clad Base Metals(By Countries)

2 0 1 1 - 1 2 2 0 1 2 - 1 3Country

Q t y Value Q t y Value(kg) (L 000) (kg) (L 000)

Al l Countr ies 11 7 4 3 2 2 7 0 6 3 9 8 2 3 0

USA 4 5 4 2 9 3 1 2 1 6 2 9 1 7

Denmark - - 1 8 0 2 5 2 5

I ta ly 1 5 4 5 6 5 7 1 3 8 5

U K - - 1 6 3 1 1 3 4

Thailand - - 6 1 4 6

Turkey - - 1 5 9 5

Germany 3 9 5 0 1 1 2 1

France - - 1 7

Other countries 6 6 6 2 8 3 8 2 - -

FUTURE OUTLOOKIndia is the largest importer and largest

consumer of silver in the world. The averagedomestic consumption of silver in the country onan average is about 3,000 tonnes per annum.Considering the current pattern of utilisationof silver in the country and the anticipated

increase in the GDP, the future demand forsilver is likely to exceed 6,000 tonnes per annumby 2017 as per the report of the Working Groupon Mineral Exploration and Development (Otherthan Coal & Lignite) for the XII Five Year Plan(2012-2017).