Hindustan Zinc, the country’s largest silver-producing company, has slipped in the global rankings of the world’s top silver producers.
According to the Global Silver Survey 2026 by the Silver Institute, the Washington-based apex body of the silver industry, the company’s ranking has dropped from third place in 2023 to eighth in 2025.
Mine Sequencing Impact
Hindustan Zinc produced a record 739 tonnes of silver in 2023, securing the third position globally. However, since then, its silver output has been on a downward trend. Over the past two years, production has declined by 15% to 628 tonnes in calendar year 2025, the survey noted.
“Indian output fell for the second consecutive year due to mine sequencing at Hindustan Zinc’s operations,” the report stated.
In its production update, the company said the decline in silver output to 627 tonnes in FY2025–26 was “in line with lead production and lower silver input from mines in accordance with the mining sequence.”
When contacted, a Hindustan Zinc spokesperson said the company is currently in a silent period and cannot comment.
Market Volatility
Amid a sharp rise in silver prices in 2025, mining companies have increasingly hedged their production in the forward market. Of the total hedge book, about 25% was in forward contracts and 75% in options. The overall hedge book stood at 50 million ounces (1,555 tonnes), more than eight times higher than the previous year’s 5.3 tonnes.
Global silver mine production reached 846.6 tonnes in 2025, marking a 3% increase over the previous year. Hedging activity strengthened in the second half of the year, with short-dated contracts dominating the hedge book, allowing producers to preserve upside potential while managing near-term risks.
“Options remain the preferred method of hedging,” the survey noted, citing heightened volatility in the latter half of the year.
Among forward sales, only three producers had open forward contracts at year-end, with notable positions held by Peñoles and Hindustan Zinc.
Hindustan Zinc has steadily expanded its hedge book, with 137 tonnes of contracts outstanding as of December 2025. These contracts cover roughly 20% of its projected 2026 production and carry a weighted average price of $31 per ounce—significantly below the current spot price.
Looking ahead, the survey cautioned that price movements are likely to be more pronounced than investors have become accustomed to. “With deficits expected to persist, a return to the previous status quo appears unlikely in the near term,” it said.