V2U Research

Given the ongoing shortages, Canadian silver producers are seeking designation of essential mineral status.

Nineteen Canadian silver miners are requesting that the federal government in Ottawa acknowledge silver as a vital resource, as the nation's producers increase annual production to C$300 million.

Although the firms acknowledge that declining grades and economic considerations contributed to Canada's loss in silver output in the second half of the 20th century, they also note that interest and exploration in the metal have recently increased.

With 21% of the nation's silver demands supplied, Canada is the 13th-largest producer of the metal and the US's top foreign supplier.

The chief executive officers of Canadian silver producers and explorers, including First Majestic Silver (TSX: FR), Dolly Varden Silver Corp (CVE: DV), Endeavour Silver Corp (TSX: EDR), and Silver One Resources (CVE: SVE), have signed a letter addressed to Jonathan Wilkinson, Minister of Energy and National Resources.

Another signatory is the CEO of the Silver Institute, located in Washington.

In December, submissions were requested by Natural Resources Canada for a proposed amendment to the important minerals list in Canada.

The mineral must meet three requirements in order to be admitted: it must be vital to Canada's economy or national security, necessary for the nation's shift to a low-carbon economy, and aid Canada in providing vital mineral supplies to its allies.

Furthermore, it must be demonstrated that both the mineral's supply is in jeopardy and that producing it in Canada is a plausible option.

"Unrivalled" electrical conductivity

Concentrated solar power and photovoltaic (PV) cells both depend on silver.

The letter states that "its unparalleled conductivity benefits PV cells with silver's utilisation in electrodes in electrodes for the majority of common cell types."

One gigawatt of solar power generated by photovoltaics takes 685,000 ounces of silver.

Additionally, the metal is a component of all electric switches in electric vehicles as well as rod cluster control assemblies in nuclear reactors.

Growing shortages in silver

The biggest silver shortfall ever recorded was in 2022 (237.7 million ounces), while the forecast deficit for 2023 is 142.1 million ounces.

According to the letter, current worldwide mine production will not be sufficient to meet the anticipated increase in silver demand in the future.

According to a recent assessment by the Carnegie Endowment for International Peace, the geopolitical stability of the silver supply would decline by 56.5% if nations with shaky democracies were left out of overall global output figures.

Significant resource risks were discovered in the analysis when it came to the energy transition requirements for cobalt, graphite, lithium, nickel, silver, tellurium, and tin.

The silver mines stated that "all but silver are currently recognised on Canada's critical minerals list."

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Over the last ten years, Canadian silver production has decreased.

This is due to a decrease in ore grades brought about by the mining of silver-rich veins, which leaves lower grade material available for mining.

The letter goes on, "More exploration is required to identify new ore bodies."

This demonstrates the necessity of coordinated silver discovery and development to maintain Canada's capacity to supply vital silver to the global market.