Silvercorp Metals Inc. (TSX: SVM) (NYSE American: SVM) expects a temporary slowdown at its Ying and GC mining operations as it implements new nationwide mine safety requirements introduced by Chinese regulators after a fatal coal mine accident in May. The company announced that production will 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.
For the full press release, visit https://ibn.fm/UyR0X.
Silvercorp is a Canadian mining company producing silver, gold, lead, and zinc with a long history of profitability and growth potential. The Company’s strategy is to create shareholder value by focusing on generating free cash flow from long life mines, organic growth through extensive drilling for discovery, ongoing merger and acquisition efforts to unlock value, and long term commitment to responsible mining and ESG.
NOTE TO INVESTORS: The latest news and updates relating to SVM are available in the company’s newsroom at https://ibn.fm/SVM.
