Silvercorp Metals Temporarily Slows Operations Due to New Safety Measures in China
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jun 30 2026
0mins
Silvercorp Metals announced that further to new nationwide safety measures imposed across the Chinese mining industry, it will experience a temporary slowdown in operations at its Ying and GC mining operations. During this time the company will work with the government regulators as it implements new safety systems and obtains the necessary approvals to resume full operations.
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Averages
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About SVM
Silvercorp Metals Inc. is a Canadian mining company producing silver, gold, lead, and zinc. The Company is engaged in the acquisition, exploration, development, and mining of mineral properties. The Company's producing mines are located in China and exploration and development projects are located in China and Ecuador. In the Ying Mining District, it has about seven underground mines (SGX, HZG, HPG, TLP, LME, LMW and DCG) and two processing plants. The GC silver-lead-zinc mine is located approximately 200 km west of Guangzhou, the capital city of Guangdong Province, China. El Domo project is a copper-gold mine under construction in central Ecuador, approximately 150 km northeast of the major port city of Guayaquil. The BYP Mine is located approximately 220 km southwest of Changsha, the capital city of Hunan Province, China. Condor project is located in one of Ecuador's developed mining regions. It also has interest in Tulkubash/Kyzyltash Gold Projects, Kyrgyzstan.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Silvercorp Metals Cuts Production by Up to 50% Due to New Safety Regulations
- Production Impact: Silvercorp Metals is slowing operations at its Ying and GC mining sites in China due to new safety systems, expecting a production cut of 40%-50% at Ying and approximately 50% at GC during the July-September quarter, significantly affecting overall output.
- Short-term Effects: The current quarter is projected to see a 10%-15% production impact, indicating the immediate repercussions of the new safety requirements on the company's operations, which may lead to a decline in revenue.
- Cost Implications: The company anticipates that the safety system improvement activities will cost around $5.5 million and take about 50 days to complete, with an additional $6 million expected for other enhancements and equipment upgrades, increasing short-term financial pressure.
- Regulatory Context: Following a major accident at a coal mine in Shanxi Province last month, China's State Council and National Mine Safety Administration issued comprehensive safety requirements applicable to the entire mining industry, highlighting the government's strong focus on mining safety.
See More
Silvercorp Metals Announces Temporary Production Slowdown Due to New Safety Regulations
- New Safety Regulations: Silvercorp Metals announced a temporary production slowdown at its Ying and GC mines due to new nationwide safety regulations, with expected production declines of 10% to 15% this quarter, directly impacting short-term revenue and market performance.
- Safety System Upgrades: The company has hired five certified contractors at an estimated cost of $5.5 million to install the required 'Six Major Safety Systems,' with completion expected in 50 days, which will enhance safety standards and reduce future accident risks.
- Additional Investment Plans: In addition to the safety systems, the company plans to spend another $6 million to replace electrical cables with safer fire-resistant alternatives, further improving safety and ensuring compliance with new regulations.
- Production Outlook Decline: Production at the Ying Mining District is expected to decline by 40% to 50% during the July-September quarter, while the GC mine is projected to see a similar 50% drop, significantly affecting the company's overall performance.
See More
Silvercorp Metals Temporarily Halts Operations Due to Safety Measures
- Operational Impact: Silvercorp Metals will experience a temporary slowdown in operations at its Ying and GC mining sites due to new nationwide safety measures in the Chinese mining industry, with production expected to be affected by 40% to 50% during the July-September quarter, indicating significant compliance pressures and potential financial losses for the company.
- Compliance Review: Following a self-assessment of new safety regulations, Silvercorp identified non-compliance issues across various mines, leading to the suspension of operations and a planned investment of approximately $5.5 million to implement the 'Six Major Safety Systems' to meet the new standards.
- Equipment Upgrade Investment: The company will also invest an additional $6 million in facility improvements and equipment upgrades, including replacing flame-retardant cables for electricity transfer, demonstrating its commitment to safety and compliance in operations.
- Phased Resumption Policy: The government has adopted a practical procedure allowing mining companies to gradually resume production at individual mining levels once the 'Six Major Safety Systems' are completed and approved, which will help Silvercorp mitigate the overall impact on production as compliance is achieved.
See More
Silvercorp Metals Temporarily Halts Operations Due to Safety Measures
- Operational Impact: Silvercorp's Ying and GC mining operations will temporarily slow down due to new nationwide safety measures in the Chinese mining industry, with production at Ying expected to decrease by 40% to 50% and GC by approximately 50% during the July-September quarter.
- Compliance Costs: The company has identified non-compliance issues across various mines and plans to invest approximately $5.5 million to complete the 'Six Major Safety Systems,' alongside an additional $6 million for facility improvements and equipment upgrades to meet new regulations.
- Increased Government Oversight: Following a major coal mine accident in Shanxi Province, the Chinese government has intensified safety inspections across all metal and non-metal mines, mandating comprehensive self-risk assessments to prevent similar incidents.
- Phased Resumption Policy: To mitigate extended downtime, the government has implemented a policy allowing mines to gradually resume production once the 'Six Major Safety Systems' are completed and approved, facilitating a quicker return to operations for Silvercorp post-compliance.
See More
Silvercorp Files 2026 Annual Report and Technical Update
- Annual Report Filing: Silvercorp Metals Inc. filed its Annual Report on Form 40-F with the SEC on June 29, 2026, covering the fiscal year ended March 31, 2026, which includes audited financial statements and management's discussion, aimed at enhancing transparency and investor confidence.
- Technical Report Update: The company also submitted an updated technical report for its El Domo copper-gold project in Ecuador, prepared in accordance with National Instrument 43-101, highlighting the project's potential value and future growth opportunities.
- Information Access: All filed documents are available on EDGAR, SEDAR+, and the company's website, ensuring shareholders and investors can easily access critical information, thereby improving communication efficiency between the company and its investors.
- Corporate Strategy: Silvercorp focuses on creating shareholder value through free cash flow generation, extensive drilling for discoveries, ongoing M&A efforts, and a long-term commitment to responsible mining practices, demonstrating its potential for sustainable growth in the mining sector.
See More
Silvercorp Metals Updates Technical Report
- Technical Report Update: Silvercorp Metals has released an updated technical report on the Gaocheng silver-lead-zinc project in Guangdong, China, adhering to National Instrument 43-101 standards, with mineral reserve and resource estimates effective as of December 31, 2025, reinforcing the company's commitment to transparency and compliance in mining.
- Resource Estimate Correction: The company also filed an amended mineral resource estimate for the Tulkubash and Kyzyltash gold projects in Kyrgyzstan, correcting typographical errors in tables without altering the original resource estimates or conclusions, demonstrating the company's focus on data accuracy.
- Compliance and Transparency: The updated technical report and amended resource estimates are accessible on the company's website and relevant regulatory sites, enhancing investor trust in the company's disclosures and increasing market interest in its stock.
- Long-term Strategic Commitment: Silvercorp is dedicated to creating shareholder value through ongoing mineral resource assessments and compliance improvements, showcasing its long-term growth potential and sustainable development strategy in the mining sector.
See More
Silvercorp Metals Cuts Production by Up to 50% Due to New Safety Regulations
- Production Impact: Silvercorp Metals is slowing operations at its Ying and GC mining sites in China due to new safety systems, expecting a production cut of 40%-50% at Ying and approximately 50% at GC during the July-September quarter, significantly affecting overall output.
- Short-term Effects: The current quarter is projected to see a 10%-15% production impact, indicating the immediate repercussions of the new safety requirements on the company's operations, which may lead to a decline in revenue.
- Cost Implications: The company anticipates that the safety system improvement activities will cost around $5.5 million and take about 50 days to complete, with an additional $6 million expected for other enhancements and equipment upgrades, increasing short-term financial pressure.
- Regulatory Context: Following a major accident at a coal mine in Shanxi Province last month, China's State Council and National Mine Safety Administration issued comprehensive safety requirements applicable to the entire mining industry, highlighting the government's strong focus on mining safety.
See More
Silvercorp Metals Announces Temporary Production Slowdown Due to New Safety Regulations
- New Safety Regulations: Silvercorp Metals announced a temporary production slowdown at its Ying and GC mines due to new nationwide safety regulations, with expected production declines of 10% to 15% this quarter, directly impacting short-term revenue and market performance.
- Safety System Upgrades: The company has hired five certified contractors at an estimated cost of $5.5 million to install the required 'Six Major Safety Systems,' with completion expected in 50 days, which will enhance safety standards and reduce future accident risks.
- Additional Investment Plans: In addition to the safety systems, the company plans to spend another $6 million to replace electrical cables with safer fire-resistant alternatives, further improving safety and ensuring compliance with new regulations.
- Production Outlook Decline: Production at the Ying Mining District is expected to decline by 40% to 50% during the July-September quarter, while the GC mine is projected to see a similar 50% drop, significantly affecting the company's overall performance.
See More
Silvercorp Metals Temporarily Halts Operations Due to Safety Measures
- Operational Impact: Silvercorp Metals will experience a temporary slowdown in operations at its Ying and GC mining sites due to new nationwide safety measures in the Chinese mining industry, with production expected to be affected by 40% to 50% during the July-September quarter, indicating significant compliance pressures and potential financial losses for the company.
- Compliance Review: Following a self-assessment of new safety regulations, Silvercorp identified non-compliance issues across various mines, leading to the suspension of operations and a planned investment of approximately $5.5 million to implement the 'Six Major Safety Systems' to meet the new standards.
- Equipment Upgrade Investment: The company will also invest an additional $6 million in facility improvements and equipment upgrades, including replacing flame-retardant cables for electricity transfer, demonstrating its commitment to safety and compliance in operations.
- Phased Resumption Policy: The government has adopted a practical procedure allowing mining companies to gradually resume production at individual mining levels once the 'Six Major Safety Systems' are completed and approved, which will help Silvercorp mitigate the overall impact on production as compliance is achieved.
See More
Silvercorp Metals Temporarily Halts Operations Due to Safety Measures
- Operational Impact: Silvercorp's Ying and GC mining operations will temporarily slow down due to new nationwide safety measures in the Chinese mining industry, with production at Ying expected to decrease by 40% to 50% and GC by approximately 50% during the July-September quarter.
- Compliance Costs: The company has identified non-compliance issues across various mines and plans to invest approximately $5.5 million to complete the 'Six Major Safety Systems,' alongside an additional $6 million for facility improvements and equipment upgrades to meet new regulations.
- Increased Government Oversight: Following a major coal mine accident in Shanxi Province, the Chinese government has intensified safety inspections across all metal and non-metal mines, mandating comprehensive self-risk assessments to prevent similar incidents.
- Phased Resumption Policy: To mitigate extended downtime, the government has implemented a policy allowing mines to gradually resume production once the 'Six Major Safety Systems' are completed and approved, facilitating a quicker return to operations for Silvercorp post-compliance.
See More
Silvercorp Files 2026 Annual Report and Technical Update
- Annual Report Filing: Silvercorp Metals Inc. filed its Annual Report on Form 40-F with the SEC on June 29, 2026, covering the fiscal year ended March 31, 2026, which includes audited financial statements and management's discussion, aimed at enhancing transparency and investor confidence.
- Technical Report Update: The company also submitted an updated technical report for its El Domo copper-gold project in Ecuador, prepared in accordance with National Instrument 43-101, highlighting the project's potential value and future growth opportunities.
- Information Access: All filed documents are available on EDGAR, SEDAR+, and the company's website, ensuring shareholders and investors can easily access critical information, thereby improving communication efficiency between the company and its investors.
- Corporate Strategy: Silvercorp focuses on creating shareholder value through free cash flow generation, extensive drilling for discoveries, ongoing M&A efforts, and a long-term commitment to responsible mining practices, demonstrating its potential for sustainable growth in the mining sector.
See More
Silvercorp Metals Updates Technical Report
- Technical Report Update: Silvercorp Metals has released an updated technical report on the Gaocheng silver-lead-zinc project in Guangdong, China, adhering to National Instrument 43-101 standards, with mineral reserve and resource estimates effective as of December 31, 2025, reinforcing the company's commitment to transparency and compliance in mining.
- Resource Estimate Correction: The company also filed an amended mineral resource estimate for the Tulkubash and Kyzyltash gold projects in Kyrgyzstan, correcting typographical errors in tables without altering the original resource estimates or conclusions, demonstrating the company's focus on data accuracy.
- Compliance and Transparency: The updated technical report and amended resource estimates are accessible on the company's website and relevant regulatory sites, enhancing investor trust in the company's disclosures and increasing market interest in its stock.
- Long-term Strategic Commitment: Silvercorp is dedicated to creating shareholder value through ongoing mineral resource assessments and compliance improvements, showcasing its long-term growth potential and sustainable development strategy in the mining sector.
See More
