New Pacific Metals Gears Up to Tackle Global Silver Supply Deficit

Global silver demand is soaring, driven by electric vehicles, AI data centers, and green energy, yet supply remains constrained. According to the fifth consecutive year of supply/demand imbalance, 2025 marked another deficit, and the Silver Institute expects mine production to stay flat in 2026, widening the shortfall. Governments, including the U.S., have classified silver as a critical mineral. The shortage stems from rising industrial demand and sluggish new mine supply, as most silver is a byproduct of copper and zinc, limiting rapid output increases.

New Pacific Metals Corp. (TSX:NUAG, NYSE-A:NEWP) is stepping up to address this challenge. The Vancouver-based exploration and development company owns two of the world's largest undeveloped open-pit silver projects: Silver Sand and Carangas, which together could produce nearly 23 million ounces of silver annually. Silver Sand in Bolivia holds over 200 million ounces of silver and is projected to produce 12 million ounces per year, while Carangas also contains over 200 million ounces and is estimated to yield 15.5 million ounces annually. Late last month, New Pacific signed Administrative Mining Contracts for Carangas, granting a 30-year fixed term, a key milestone toward production. Drilling is set to begin in September, with 30,000 metres planned to upgrade resources and test extensions.

Carangas stands out for its efficiency: as an open-pit mine, it is cheaper and safer to operate. During the first eight years, production costs are expected to be about $12 per ounce after byproduct credits. With silver prices hitting an all-time high early this year and J.P. Morgan forecasting $63 per ounce in Q4 2026, the project could pay back setup costs in under two and a half years. At full production, Carangas alone could represent about 1.8% of global mine supply, rising to 3% if output reaches 25 million ounces annually. To learn more, click here.