Silvercorp suspends China mines after new safety rules hit output

Silvercorp Metals Inc. (NYSE American: SVM) has suspended operations at its Ying and GC mining operations in China following nationwide safety inspections triggered by a fatal coal mine accident in Shanxi Province in late May 2026.

China's State Council and National Mine Safety Administration issued new safety requirements covering the entire mining industry after the accident exposed systemic gaps, including incomplete personnel positioning systems, concealed mining areas, and inadequate supervision. Regulators subsequently expanded inspections to non-coal mines, including metal and underground mining operations.

Following an internal review, Silvercorp identified non-compliances with the new regulations at multiple mining levels across its Ying and GC operations. The company has engaged five certified vendors to complete the required "Six Major Safety Systems" — covering safety monitoring, personnel positioning, emergency refuge, compressed-air self-rescue, water-supply rescue, and communication linkage — at affected mining levels. That work is expected to cost approximately $5.5 million and take around 50 days to complete.

Additional facility improvements and equipment upgrades, including the replacement of flame retardant cables with halogen-free alternatives, are expected to cost another $6 million.

Chinese authorities have adopted a phased approval process allowing mines to resume production at individual levels once safety systems for those levels pass inspection, enabling gradual resumption while work continues elsewhere.

Production at the Ying Mining District is expected to be affected by 40% to 50% during the July–September quarter, while GC mine output is expected to be affected by approximately 50% over the same period. For the current quarter, production is expected to be affected by 10% to 15%.

Silvercorp is a Canadian mining company that produces silver, gold, lead, and zinc. The information above is based on a company press release dated June 29, 2026.

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