# Lead and Silver

Lead-zinc mines are the largest single source of the world's silver, and the silver is recovered in lead smelting and refining, so silver credits often make lead mines pay while lead output decides much silver supply.

Source page: https://www.materialinsights.org/links/lead-and-silver/

[Lead](https://www.materialinsights.org/commodities/lead/) (commodity) and [Silver](https://www.materialinsights.org/commodities/silver/) (commodity): 3 relationships.

## How they are linked

### 1. Silver from lead-zinc ores

*Joint production · Strong · Lead-zinc mining to silver*

Silver occurs in lead and zinc ores, travels with the concentrate to the smelter and is separated during smelting and refining.

- **29.4%** share of world mine silver from lead-zinc mines, 2024 (241.3 Moz)
- **27.8%** share from primary silver mines, 2024

Lead-zinc mines remained the dominant source of silver in 2024, ahead of primary silver mines and copper mines. Because the mines are run for base metals, a jump in silver prices does not quickly raise this part of supply.

Sources: [The Silver Institute and Metals Focus](https://edrsilver.com/site/assets/files/14161/world-silver-survey-2025.pdf); [USGS](https://pubs.usgs.gov/periodicals/mcs2026/mcs2026-silver.pdf)

### 2. Recovered in lead refining

*Joint production · Strong · Lead smelter to silver refinery*

Silver collects in lead bullion and refinery slimes, so lead smelters with silver refineries attached capture it; Hindustan Zinc is the clearest example in India.

- **687 t** Hindustan Zinc silver output, FY25 (746 t in FY24)
- **960 t a year** capacity of Hindustan Zinc's Pantnagar silver refinery
- **225 kt** Hindustan Zinc refined lead, FY25

Hindustan Zinc notes that silver occurs in its lead and zinc ore and is recovered in smelting and silver refining. Its silver revenue of ₹6,130 crore in FY25 rose 14% even as volume fell 8%, showing how silver prices support lead-zinc economics. The company describes its Sindesar Khurd lead-zinc mine as the world's second-largest silver producing mine.

Sources: [Hindustan Zinc](https://www.hzlindia.com/wp-content/uploads/Earnings-Press-Release_Q4FY25_v10.pdf); [Hindustan Zinc](https://hzlindia.com/what-we-do/metal-smelting-sites/pantnagar-smelting-plant); [Hindustan Zinc](https://www.hzlindia.com/wp-content/uploads/Hindustan-Zinc-Factsheet-2025.pdf)

### 3. Price link: by-product

*Cost and price · Moderate · Both ways*

Shared mines and refineries tie the two, but their demand differs: lead goes mostly into car batteries and is heavily recycled, while silver follows investment and electronics.

- **0.36** monthly change correlation
- **0.38** 12-month change correlation
- **0.14** fitted elasticity

The correlation rose to 0.45 in the last five years. Lead-acid batteries took about 67% of US lead use in 2025, so a car market slump hits lead without touching silver, while monetary shocks move silver without moving lead.

Sources: [Material Insights (World Bank, FRED, IMF data)](https://www.materialinsights.org/commodities/lead/correlation/); [USGS](https://pubs.usgs.gov/periodicals/mcs2026/mcs2026-lead.pdf)

## For investors

### Key learnings

1. Lead-zinc mines supplied about 29% of mine silver in 2024, so lead and zinc mine output, not silver prices, sets much of silver supply.
2. Silver credits can turn marginal lead-zinc mines profitable, so a falling silver price is a risk to lead supply.
3. The price link is moderate because battery demand drives lead and investment drives silver.

### What to track

- **Silver price and silver share of lead-zinc miner revenue**: By-product credit supporting mine margins (Quarterly · company results (Hindustan Zinc, Glencore))
- **Lead mine output**: Changes in by-product silver supply (Monthly · ILZSG)

## For policymakers

### Key learnings

1. India's main domestic silver source is lead-zinc mining and refining at Hindustan Zinc, the world's third-largest silver producer, so lead-zinc mine policy is also silver supply policy.
2. India still imports most of its silver, about $12 bn worth in 2025-26, so domestic by-product output eases but does not remove import dependence.
3. Recycling of lead batteries supplies lead but not silver, so rising recycling does not add silver.

### What to track

- **Hindustan Zinc silver output**: Domestic silver supply (Quarterly · company production releases)
- **India silver imports**: Gap between domestic output and demand (Monthly · Ministry of Commerce)

## India

Hindustan Zinc, the world's third-largest silver producer, recovered 687 t of silver from its lead-zinc ores in FY25, though India still imports most of the silver it uses.

## Sources

1. [Price correlation, Material Insights](https://www.materialinsights.org/commodities/lead/correlation/), Material Insights (World Bank, FRED, IMF data)
2. [World Silver Survey 2025](https://edrsilver.com/site/assets/files/14161/world-silver-survey-2025.pdf), The Silver Institute and Metals Focus (2025)
3. [Mineral Commodity Summaries 2026: Silver](https://pubs.usgs.gov/periodicals/mcs2026/mcs2026-silver.pdf), USGS (2026)
4. [Earnings press release, Q4 FY25](https://www.hzlindia.com/wp-content/uploads/Earnings-Press-Release_Q4FY25_v10.pdf), Hindustan Zinc (2025)
5. [Pantnagar smelting plant](https://hzlindia.com/what-we-do/metal-smelting-sites/pantnagar-smelting-plant), Hindustan Zinc
6. [Mineral Commodity Summaries 2026: Lead](https://pubs.usgs.gov/periodicals/mcs2026/mcs2026-lead.pdf), USGS (2026)
7. [Hindustan Zinc factsheet 2025](https://www.hzlindia.com/wp-content/uploads/Hindustan-Zinc-Factsheet-2025.pdf), Hindustan Zinc (2025)
8. [Gold imports rise 24 pc to USD 71.98 bn in 2025-26 (PTI)](https://www.theweek.in/wire-updates/business/2026/04/17/gold-imports-rise-24-pc-to-usd-71.98-bn-in-2025-26.amp.html), The Week (PTI) (2026)