Silvercorp is moving to install the government-mandated "Six Major Safety Systems"—which include advanced monitoring, personnel positioning, and emergency communication protocols—after identifying non-compliance at several mining levels. The company has engaged five certified vendors to oversee the work, budgeting approximately US$5.5 million for systems integration and an additional US$6 million for equipment upgrades, such as the installation of halogen-free flame retardant cables.
Silvercorp Scales Back China Operations Amid Nationwide Safety Audit
Following a fatal coal mine accident in Shanxi Province, Chinese regulators have launched a sweeping safety crackdown across the mining sector, forcing Silvercorp Metals Inc. to throttle output at its Ying and GC operations to complete mandatory infrastructure upgrades.
To mitigate the financial impact, officials have authorized a phased resumption of production. Mines may restart work at individual levels as soon as they pass inspection, rather than waiting for site-wide approval. Despite this flexibility, the company expects significant near-term disruption. Production at the Ying Mining District is projected to drop by 40% to 50% during the July-September quarter, while the GC mine anticipates a similar 50% decline over the same period. For the current quarter, the overall impact on production is estimated between 10% and 15%.
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