Peru was the largest producer the world had for silver, until they’ve recently been knocked down to the second largest producer of the white metal for the globe behind Mexico. Many factors are effecting the silver market in Peru right now, causing a halt on silver concessions in the middle of a political election.
The suspension hits some of the major mining companies out there including but not limited to,
- Bear Creek Mining Corp.
- Rio Alto Mining Ltd.
- Bear Creeks Santa Ana Silver Project
The outcome of the election will determine the outcome of the supspended mining concessions for Peruvian silver and other metals. The left wing politician Ollanta Humala is supported by the Peruvian Nationalist Party, and will be demanding higher royalty payments from the mining companies operating in Peru. He has won the election as of June 5th 2011 and is scheduled to be sworn in on July 28th 2011 as the 94th president of Peru.
This could spell higher prices for silver once again, but this time there will be a legitimate reason.