(RTTNews) - Silvercorp Metals Inc. (SVM) announced a temporary slowdown in operations at its Ying and GC mines in China following new nationwide mine safety requirements.
The production is expected to be affected by 10% to 15% in the current quarter.
The new rules were introduced after a fatal coal mine accident in China's Shanxi Province in May 2026, leading authorities to increase safety inspections across all mining operations.
The company has hired five certified contractors to install the required "Six Major Safety Systems" at affected mining areas at an estimated cost of about $5.5 million.
The work is expected to take around 50 days to complete.
The company said that additional safety-related upgrades, including replacing electrical cables with safer fire-resistant cables, are expected to cost another $6 million.
The regulators will allow mining activities to restart in stages as each mining level completes the required safety upgrades and receives approval.
Looking ahead, production at the Ying Mining District is expected to decline by 40% to 50% during the July-September quarter, while production at the GC mine is expected to fall by about 50% over the same period.
On Monday, Silvercorp closed trading 0.46% higher at $10.92 on the New York Stock Exchange. In the overnight, the stock is trading 2.66% lesser at $10.63.
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