Silvercorp Metals Inc. (TSX: SVM) (NYSE American: SVM) announced a temporary slowdown at its Ying and GC mining operations as it implements new nationwide mine safety requirements introduced by Chinese regulators following a fatal coal mine accident in May. The company expects production to be reduced by 10% to 15% during the current quarter and by 40% to 50% at the Ying Mining District and about 50% at the GC mine during the July-September quarter while required upgrades are completed and approved.
Silvercorp said it has engaged five certified vendors to install the required “Six Major Safety Systems” at non-compliant mining levels at an estimated cost of approximately $5.5 million, with completion expected in about 50 days. The company also plans to spend an additional $6 million on facility improvements and equipment upgrades, including replacing electrical cables with halogen-free flame-retardant cables, while resuming production in phases as individual mining levels receive regulatory approval.
The safety measures are part of a broader regulatory response to a fatal coal mine accident in May, which prompted nationwide inspections and stricter enforcement of safety protocols. For Silvercorp, the temporary slowdown is expected to impact its silver, gold, lead, and zinc production in the near term, though the company anticipates a phased return to normal operations as upgrades are approved.
For more details, the full press release is available at https://ibn.fm/UyR0X. The latest news and updates relating to SVM are available in the company’s newsroom at https://ibn.fm/SVM.
