Spotlight on North American Gold & Silver Refining
Chapter 2: Mine Supply
From a regional standpoint, according to Metals Focus North American gold mine supply ranked fifth globally in 2023, with 489t, just ahead of South America at 540t. These accounted for 13% and 15% respectively of global gold mine production, which totalled 3,644t last year. Turning to silver, North American output placed second globally at 7,421t, behind South America at 7,558t (see Table 6). These two regions’ both achieved a 29% share of world silver mine production, this being 25,784t last year.
The above analysis also covers South America as a portion of the region’s gold and silver mine production is processed in North America. However, it is important to note that some output in both regions will also be treated outside the Americas, for example in Europe, East Asia or South Asia. The extent to which this happens is revealed in LBMA’s country-of origin (COO)data, which captures where the majority of large-scale mining (LSM) and an element of artisanal and small-scale mining (ASM) is refined.
It is also worth pointing out that precious metals-containing waste, generated by refiners in the Americas, will be treated both in the region and overseas, including in Europe. The same will also apply to tailings generated by mining companies in North and South America, which is treated at both GDL and non-GDL operations, either in the Americas or overseas, including in Europe and Africa.
Table 5: Global Mine Production Treated at Americas’-based GDLs
Source: LBMA Country-of-Origin Surveys
| Tonnes | 2019 | 2020 | 2021 | 2022 |
|---|---|---|---|---|
| GOLD | ||||
| From North America | 366 | 403 | 321 | 312 |
| From South America | 113 | 100 | 44 | 110 |
| Other Markets | 19 | 20 | 3 | 24 |
| Total | 498 | 523 | 368 | 446 |
| SILVER | ||||
| From North America | 6966 | 3723 | 2533 | 3661 |
| From South America | 888 | 788 | 516 | 634 |
| Other Markets | 68 | 3 | 26 | 3 |
| Total | 7921 | 4515 | 3075 | 4297 |
Table 6: The Americas’ Gold & Silver Mine Production
Source: Metals Focus Gold Focus 2024; Metals Focus / The Silver Institute World Silver Survey 2024
| Tonnes | 2019 | 2020 | 2021 | 2022 | 2023 |
|---|---|---|---|---|---|
| GOLD | |||||
| North America | 495 | 477 | 504 | 491 | 489 |
| South America | 560 | 486 | 545 | 535 | 540 |
| Total | 1055 | 963 | 1049 | 1026 | 1029 |
| SILVER | |||||
| North America | 7235 | 6884 | 7392 | 7932 | 7421 |
| South America | 7898 | 6651 | 7417 | 7165 | 7558 |
| Total | 15133 | 13535 | 14810 | 15097 | 14979 |
As mentioned above, the COO data highlights the importance of North American refining of gold and silver mine production Tables 5 and 6 compare four years of COO data that are available (this being for 2019- 2022), with Metals Focus’ mine production series for the same timeframe (but also including their most recent statistics).
Gold
In terms of the North American GDLs, these can be broadly split into those that treat high grade doré, Asahi Refining USA, Asahi Refining Canada, Metalor USA Refining and the Royal Canadian Mint, and those processing precious metals-containing base metal concentrate, Glencore Canada, Industrias Peñoles, Rio Tinto and Tech Metals. From a gold standpoint, most US/Canadian gold mine supply is high grade gold doré, whereas the majority of Mexican gold production is derived from primary silver mines.
According to Metals Focus’ Gold and Silver Doré Service and their Gold Focus 2024 report, out of total US gold production in 2022 of 173t, 157t originated from gold doré. In Canada, this material accounted for 168t, or 86%, of the country’s total gold output in 2022 of 195t. In contrast, 61% of Mexican gold production in 2022 of 127t was derived from primary gold mines. The balance is dominated by gold processed from primary silver and base metal mines.Focussing on 2022, the COO gold tables show that GDLs across the Americas treated 408t of LSM and 14t of ASM material that year. As shown in Table 7, this accounted for 41% of the Americas’ mine supply of 1,026t. (To be clear, the GDL total includes AngloGold Ashanti’s Córrego do Sítio Mineração GDL refinery in Brazil, this being the only GDL in South America. For confidentiality reasons, LBMA groups this operation with North American-based GDLs.)
It is revealing to compare the 2022 gold refining total with previous years. This seems to indicate that in both 2019 and 2020 North American refiners processed higher volumes from across the Americas, both in absolute terms, and as a share of the Americas’ total gold mine supply than in 2022. That said, there was an improvement compared with 2021, which appears to be something of an outlier.
One point that stands out is the large share of the Americas’ gold production that is apparently not treated at a GDL, estimated at 360 in 2022 (see also Table 7). A portion of this will still be processed in the region, for example by Grupo México, from its own mines. However, the majority will likely be treated in the Middle East or South Asia. This will include ASM, which for the Americas is in the region of 150-200t per annum.
Table 7: Americas’ GDL Refiners’ Share of Regional Gold Mine Production
Source: (1) LBMA Country-of-Origin Surveys; (2) Metals Focus Gold Focus 2024
| Tonnes | 2019 | 2020 | 2021 | 2022 |
|---|---|---|---|---|
| Refining (1) | 479 | 504 | 365 | 422 |
| Mine Production (2) | 1055 | 963 | 1049 | 1026 |
| Share | 47% | 54% | 35% | 41% |
Other GDL Locations for the Americas’ Gold (Output 1)
| Tonnes | 2019 | 2020 | 2021 | 2022 |
|---|---|---|---|---|
| Switzerland | 197 | 175 | 186 | 163 |
| Japan | 1 | 1 | 126 | 4 |
| China | 38 | 18 | 70 | 5 |
| Asia / Australia | 58 | 30 | 34 | 50 |
| Europe / Africa | 15 | 13 | 25 | 22 |
| Total | 309 | 237 | 442 | 244 |
Silver
For silver, the COO data for 2022 captures 4,244t of LSM and 53t of ASM that is refined by GDLs based in North and South America. However, the more noteworthy point is the apparent collapse in refining volumes over the past few years, from 7,854t in 2019 to the above total for 2022.
This has occurred despite very little change in the region’s mine supply and also only modest gains in the Americas’ mine output that is processed in GDLs based outside the region, which rose from 4,323t in 2019 to 5,999t in 2022. Instead, it may reflect how base metal concentrates are captured in the COO data, which can potentially change. In other words, some base metal smelters may on occasion classify the material they receive as recycled, rather than mining, feedstock. This helps explain the apparent steep drop in silver being refined in North America, when the only major factor affecting North American refining activity at that time was COVID in 2020. However, this does not explain the sharp decline in 2021, nor why there was such a pronounced recovering in 2022.
As a general point, how silver bearing base metal concentrates are categorised is important on two counts. First, North America is home to four GDL refiners that can process this material, Glencore Canada, Rio Tinto, Teck Metals and Industrias Peñoles. Second, Table 9 shows the importance of these by-product metals in silver mine supply, accounting for 21% and 63% of the Americas’ total silver mine production over the 2019-23 timeframe.
Interestingly, the availability of high grade doré in the Americas, from both primary silver mines and as a by-product of primary gold mines, in 2022 (this being the most recent COO data that is available) comes to a combined 8,837t (according to Metals Focus), which also comfortably exceeded the 4,297t of silver refined that year in the Americas.
Finally, it is worth bearing in mind that the 4,297t of silver recovered from Americas’ mine supply includes an important volume of metal from some of the GDL’s own operations.
Table 8: Americas’ GDL Refiners’ Share of Regional Silver Mine Production
Source: (1) LBMA Country-of-Origin Surveys; (2) Metals Focus /The Silver Institute World Silver Survey 2024
| Tonnes | 2019 | 2020 | 2021 | 2022 |
|---|---|---|---|---|
| Refining (1) | 7854 | 4511 | 2758 | 4294 |
| Mine Production (2) | 15133 | 13535 | 14810 | 15097 |
| Share | 52% | 33% | 19% | 28% |
Other GDL Locations for the Americas’ Silver Mining (Output 1)
| Tonnes | 2019 | 2020 | 2021 | 2022 |
|---|---|---|---|---|
| China | 2785 | 2234 | 2693 | 2556 |
| Switzerland | 723 | 743 | 636 | 1153 |
| Europe / Africa | 347 | 360 | 473 | 63 |
| Japan | 51 | 33 | 438 | 237 |
| Asia / Australia | 332 | 320 | 300 | 59 |
| Total | 4238 | 3690 | 4540 | 4068 |
Table 9: North And South American Silver Mine Production by Source Metal (tonnes)
Source: Metals Focus /The Silver Institute World Silver Survey 2024
| 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|
| NORTH AMERICA | |||||
| Primary Silver | 3974 | 3685 | 3983 | 4480 | 4588 |
| By-product gold | 1610 | 1778 | 1945 | 1773 | 1372 |
| By-product copper | 475 | 470 | 393 | 393 | 346 |
| By product lead/zinc | 1154 | 936 | 1058 | 1277 | 1107 |
| Other | 20 | 15 | 13 | 9 | 9 |
| Total | 7235 | 6884 | 7392 | 7932 | 7421 |
| SOUTH AMERICA | |||||
| Primary Silver | 1787 | 1228 | 1403 | 1223 | 1347 |
| By-product gold | 1503 | 1190 | 1232 | 1361 | 1228 |
| By-product copper | 2211 | 2550 | 2470 | 2487 | 2707 |
| By product lead/zinc | 2396 | 1683 | 2312 | 2094 | 2276 |
| Other | - | - | - | - | - |
| Total | 7898 | 6651 | 7417 | 7165 | 7558 |
Profile of North American GDL Refiners
United States
Asahi Refining USA is based in Salt Lake City (Utah) and was first listed for both gold and silver in 1989 (as Johnson Matthey, this being acquired by Asahi Holdings in 2015). The company processes gold and silver mined doré from large- scale mines (LSMs) and hi-grade recycled products, from which it produces both GDL bars and a range of investment bars and rounds. The latter two are manufactured at both Salt Lake as well as at its minting facility in Miami. In 2023, the company opened Asahi Depository, a CME-accredited gold, silver and PGM vault in New York.
Metalor USA Refining is based in North Attleboro (Massachusetts) and was first listed for its gold refining in 1987. It is part of the Metalor Technologies Group, which has been a subsidiary of the Tanaka Kikinzoku Group since 2016. The company treats all precious metals, though mostly primary and hi- grade secondary gold and silver, as well as small volumes of low grade scrap. The outturn is typically GDL bars, kilobars, grains and intermediate products, both for third parties and within the group, including (in the context of this report) for Metalor Technologies USA in Attleboro, which fabricates silver-bearing industrial products.
Rio Tinto owns Kennecott Utah Copper LLC (based in Magna, Utah), an integrated copper mining operation with more than 120 years of history, that produces gold and silver as a by-product of its copper smelting and refining process.
As an LBMA Responsible gold and silver refiner, the refinery produces GDL silver bars, the majority of which are 49s purity. The refinery also produces high purity gold bars.
Canada
Asahi Refining Canada is located in Brampton (Ontario),with its gold listing dating back to 1961 and for silver dating from 1998 (in both cases previously as Johnson Matthey). It takes in both LSM mined doré and hi-grade recycled gold and silver. In a similar vein to Salt Lake, Asahi Refining Canada will produce both GDL bars and semi-finished products, the latter either for third-party clients, such as jewellery manufacturers, or for their minting facility in Miami.
Glencore Canada operates the Canadian Copper Refinery (CCR) in Montreal East (Quebec), which was first listed for gold and silver in the mid-1950s. CCR recovers precious metals from copper anodes it receives from Glencore’s smelter operation and from third-parties, as well as from anodic slimes taken in from third parties. It produces 49s GDL silver and gold bars, while the PGM-bearing concentrates recovered at the CCR are refined by a third party.
The Royal Canadian Mint (the Mint), located in Ottawa (Ontario), was first listed for gold in 1919 and for silver in 2011. The Mint treats both LSM mined doré and high-
grade recycling feedstock. The outturn covers a range of investment products, including the 99.99% Gold and Silver Maple Leaf bullion coins and GDL bars, as well as numismatic coins. The Mint also offers gold and silver exchange-traded receipts on an unallocated basis, giving title to units of physical metal stored at its facilities.
Teck Metals is a Canadian resource company focusing on providing the metals essential for global development and the energy transition. Teck Metals is also a GDL silver refiner (located in Canada) and was listed before 1959. The outturn of
the company’s silver production, one of the co-products of its Trail smelting operation, is 49s GDL silver bars.
Mexico
Industrias Peñoles’ Metalúrgica Met-Mex Peñoles (Met-Mex) lead-silver refinery is located in Torreón, Coahuila. It was first listed for silver in 1901 and for gold in 1991. Met-Mex’s intake consists of feedstock from its own mines, from Fresnillo and from other third parties. It produces refined gold, silver, zinc and lead, much of which is exported, although the company also delivers metal for local precious metals fabrication.