Based on materials from www.rusmet-trade.ru.

Polymetal Company strengthened its position in the world precious metals market, having become the fourth largest producer of silver in 2005.

According to World Silver Survey 2006, the global review of the silver market prepared by GFMS on behalf of the Silver Institute, the global extraction of silver increased by 3% in 2005, up to 642 million ounces.

The extraction from initial deposits increased by 8%, up to 188 million ounces. As in the previous years, these kinds of deposits play major role in the increase in the world production. The key growth was recorded in Mexico, Peru, Australia, Russia and Kazakhstan.

First of all, the growth was linked to the sector of initial extraction with some reduction in the production of silver as secondary product at copper, lead, zinc and gold extraction.

Russia increased the production of silver by 10.4%, up to the record level of 41.9 million ounces, having strengthened its positions among the biggest silver-producing countries. The country’s share in global production of silver increased up to 6.5%.

The 10% increase in silver production in 2005, up to 18.9 million ounces, allowed Polymetal to become the fourth biggest silver-producing company.

This is the biggest growth among the top-10 leading companies in the world. The company’s share in global extraction jumped up to 3.0 %. And it is the only company among the leading producers that extract from initial deposits, the other leaders get their silver as secondary metal during the extraction of copper, lead and zinc.

The first place in the top-five went to BHP Billiton (53.8 million ounces), second was Industrias Penoles (47.4 million ounces), third was KGHM Polska Miedz (40 million ounces), fourth was Polymetal and fifth was Grupo Mexico.

Polymetal’s Dukat-deposit produced 13.4 million ounces, and became the world’s 3rd largest silver deposit. The top-20 of the leading deposits included the company’s Lunnoe and Khakandzhinskoe deposits.