Silver Institute Fails Again. Open Pit Mining Ban Occurs on their Watch.
Mexico is #1 Silver Producer and their Production has fallen off Cliff. The Open Pit Mining Ban would be devastating for the Silver Industry as we know it.
The News Keeps Getting Worse for the Silver Institute. A Classic Case of being “Asleep at the Wheel.”
The Silver Institute, an embattled and self-proclaimed advocacy organization in the silver industry, failed to address a critical issue, resulting in dire consequences for Mexico's silver production.
Mexican President Andres Manuel Lopez Obrador's (AMLO) proposal to ban open-pit silver projects (impacting 97 mines in Chihuahua, Zacatecas, Sonora, and San Luis Potosí ) will worsen Mexico's already poor silver production, which has declined by 25% over the past 2.5 years.
The implications of this ban are massive, as the silver deficit continues to grow amidst spiking demand from various industries, including Photovoltaic (PV) systems, hydrogen fuel cell energy, bombs, missiles, torpedoes, silver-zinc batteries, space stations, satellites, rockets, fighter jets, and most defense industry products.
Unfortunately, the Silver Institute's failure to address the concerns surrounding open pit mining has contributed to Mexico's silver production decline and has had a significant impact on silver investors. This is just the latest disastrous problem facing the Silver Institute.
Previously, it's been reported in over seven news articles that The Silver Institute's deceptive World Silver surveys have cost silver investors billions if not trillions of dollars. They should have included the most extensive uses of silver.
Their poor methodology, research, and data (we believe intentional) led to investors "shooting in the dark" over essential supply versus demand silver market dynamics, an irreversible error that the silver market may not survive.
The Impact of the Open Pit Mining Ban in Mexico
Mexican President Andrés Manuel López Obrador has proposed a ban on open pit mining in the country. The proposal aims to modify Article 27 of the constitution to prohibit granting open pit mining concessions and any activities related to exploration, exploitation, or use of minerals using the open pit method.
Mexico's María Luisa Albores González is the Secretaría del Medio Ambiente y Recursos Naturales, SEMARNAT. She works with Mexico's President Andrés Manuel López Obrador, who has stated that open pit mining causes "severe environmental damage." María González and President Obrador have adopted a "water for people first" position, stating open pit mining leads to excessive water usage, which could be redirected toward water-scarce communities.
The ban will significantly impact the silver industry in Mexico, as many top producers rely on open pit operations.
Why is the Silver Institute Silent on the #1 Concern of their Silver Mining Clients?
The Silver Academy has received an influx of letters from Silver Miners concerned about this ban that could wipe them out.
Given the ban's potential disruption to the silver supply chain, it has become a significant topic of discussion here in the Silver Academy newsroom.
Still, we have yet to see any published reaction by The Silver Institute, which is quite troubling but consistent with their history of not advocating for the interests of silver. Their X feed just shows some photo of the Vince Lombardi trophy, truly pathetic
Implementing this ban raises concerns about the future of silver mining in Mexico and the challenges it may pose to meeting global silver demand.
Silver Production Challenges in Mexico
With Mexico being the number one producer of silver globally, the open pit mining ban has the potential to severely impact the country's silver output.
Get Ready for the Cost of Production to Increase by over 50%
The ban poses challenges for silver production, requiring top producers to explore alternative mining methods and adjust their operations accordingly.
This transition will lead to a drastic decline in silver production in Mexico, further exacerbating the existing silver supply deficit.
The transition from open-pit mining to alternative methods will involve higher costs, technological adjustments, and changes in workforce requirements.
Adapting to new mining practices will reduce efficiency, recovery, and productivity as companies navigate the learning curve.
This presents a significant hurdle for the silver industry in Mexico, which already faces challenges due to increasing environmental regulations, decreased ore grade, labor disruptions, mining under-investment, and sustainability concerns.
The Silver Academy stated, "Industry stakeholders should closely monitor the situation and explore strategies to maintain silver production levels while adhering to responsible mining practices."
The environmental impact of mining is a central concern in the ongoing discussion surrounding the open-pit mining ban. The Silver Academy recognizes the need to address ecological sustainability and minimize the negative consequences of mining operations on local communities and the ecosystem.
Jon Forrest Little who works as a Silver Promoter for the Pickaxe stated, “We have already reached out to visit with María Luisa González. The objective is to negotiate the balance of community needs for safe drinking water working alongside our good friends that mine the silver we all need for future energy and technology products”
The shift towards more sustainable mining methods and increased environmental consciousness will be vital for the industry's long-term viability.
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