Beijing is about to make a move that could reshape global supply chains for technology and renewable energy. According to MarketWatch, China controls around 70% of the silver that Big Tech, AI, and solar power desperately need, and the country is launching new export restrictions on January 1st that will effectively lock the gates on this critical resource.
The timing couldn't be more significant. As companies worldwide race to build AI infrastructure and expand renewable energy capacity, silver has become far more than a precious metal—it's essential infrastructure. The restrictions represent a strategic pivot by Beijing that will reverberate through industries already grappling with supply chain vulnerabilities.
This development arrives as the mining sector itself is undergoing rapid transformation. According to Mining Technology, the industry is increasingly leveraging AI and satellite technologies for autonomous operations, with panellists from the Resourcing Tomorrow industry event explaining that "AI and automation is the future of mining." The irony is sharp: the very technology driving mining innovation depends on the minerals that China is now controlling more tightly.
Copper Rebounds While Mexico Expands Capacity
While silver faces new headwinds, copper markets are showing resilience. According to Wall Street Journal headlines from late December, copper prices have rebounded after earlier volatility, with the metal hitting record highs in London before experiencing some pullback. The underlying demand story remains strong, driven by infrastructure needs and the energy transition.
Major mining operations are responding to this demand environment. Metso announced it will deliver several high-capacity Nordberg® MP800 cone crushers to Grupo Mexico's La Caridad copper mine in Nacozari, Sonora, according to International Mining. The equipment will be installed at the concentrator plant to increase capacity—a clear signal that major copper producers are betting on sustained demand and expanding their operations accordingly. Grupo Mexico, which International Mining identifies as the largest copper producer in Mexico, has maintained a long-term strategic partnership with Metso and has received significant equipment deliveries across multiple mining sites in recent years.
Geopolitical Pressures Reshape Mining Landscapes
The mining sector is also navigating complex geopolitical terrain. Eurasia Mining has agreed to divest its West Kytlim operations in Russia's Urals region, according to Mining Technology, amid concerns over potential nationalization. The move reflects broader uncertainties facing international mining companies operating in geopolitically sensitive regions.
Meanwhile, infrastructure investments continue despite market volatility. Sofi Filtration recently opened a new test center in Izmir, Turkey, according to International Mining, marking what the company describes as a direct response to growing customer demand in the region. The facility will enable commercial testing and piloting with mining industry customers in Turkey, suggesting that despite headline risks, mining companies are making long-term commitments to regional expansion.
What's at Stake
The convergence of these developments—China's silver export controls, copper capacity expansions, geopolitical divestments, and technology-driven mining innovation—paints a picture of an industry in transition. Companies are simultaneously investing in new capacity and automation while navigating supply chain constraints and political risk.
For investors and industry participants, the message is clear: 2026 will be defined by who can secure critical minerals in an increasingly fragmented global market. China's January 1st silver restrictions are just the opening move in what promises to be a year of significant supply chain realignment.
Reporting based on coverage from MarketWatch, Mining Technology, International Mining, and CNBC Energy.