New Pacific Metals Corp. is strategically positioned to meet increasing global silver demand through its two significant projects in Bolivia. The company's Silver Sand and Carangas projects are among the largest undeveloped open-pit silver assets globally, with potential to produce a combined 19 million ounces of silver annually. This development comes at a critical time as industrial applications, including photovoltaic solar panels and electric vehicles, now account for 83% of annual silver demand according to the World Silver Survey.
The Silver Sand project, with a projected annual output of 12 million ounces of silver over a 13-year mine life, boasts a post-tax net present value of US$740 million and an internal rate of return of 37%. Similarly, the Carangas project is expected to produce 6.6 million ounces of silver annually, with additional gold potential at depth. These projects not only highlight New Pacific's potential to become a leading primary silver producer but also underscore the strategic importance of Bolivia's mining sector, which is ripe for foreign investment.
Backed by significant shareholders like Silvercorp Metals and Pan American Silver, New Pacific is navigating Bolivia's permitting process to unlock the full potential of its assets. With global silver demand on the rise and few large-scale projects under development, New Pacific's initiatives represent a critical step toward addressing the supply gap in the silver market. The company's progress is particularly significant given the structural deficit in silver supply that has emerged in recent years, with industrial consumption outpacing mine production.
The implications extend beyond corporate success to broader economic and environmental considerations. As the transition to renewable energy accelerates, silver's role in photovoltaic technology becomes increasingly vital. New Pacific's projects could help stabilize supply chains for solar panel manufacturers and electric vehicle producers who rely on silver for conductive components. Furthermore, successful development of these assets could stimulate Bolivia's economy through job creation and infrastructure development while positioning the country as a significant player in the global silver market.
The timing of these developments coincides with growing recognition of silver's critical role in decarbonization technologies. With automotive electrification and solar energy expansion driving unprecedented demand, New Pacific's Bolivian projects offer a timely response to market needs. The company's ability to advance these assets through permitting and into production will test both corporate capabilities and Bolivia's investment climate, with outcomes that could influence future mining investment in the region.
