Silvercorp Scales Back China Operations Amid Nationwide Safety Audit

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.

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%.