Silvercorp Metals Inc. has temporarily suspended mining activities at its operations in China to carry out required safety enhancements, the company announced Tuesday. The Vancouver-based miner said the stoppage affects its projects in the Ying mining district of Henan province, where it operates several silver-lead-zinc mines.
Safety Work Underway
The company stated that the pause is necessary to comply with local regulatory mandates for safety inspections and upgrades. Silvercorp expects the work to be completed within a few weeks, after which normal production will resume. The company did not provide a specific timeline but emphasized that safety remains its top priority.
According to Silvercorp, the affected operations account for approximately 30% of its total silver production. The company is working closely with Chinese authorities to ensure all requirements are met efficiently.
Impact on Production
Silvercorp produced roughly 6.5 million ounces of silver in fiscal 2025, with the Ying mines contributing a significant portion. The temporary shutdown is expected to reduce output in the current quarter, but the company said it has sufficient inventory to meet existing contracts.
“We are committed to operating responsibly and ensuring the safety of our workforce and the communities where we operate,” said a Silvercorp spokesperson. “These measures are in line with our long-standing commitment to safety excellence.”
Market Reaction
Shares of Silvercorp fell 2.3% on the Toronto Stock Exchange following the announcement, as investors weighed the production impact. However, analysts noted that the shutdown is temporary and unlikely to materially affect the company’s financial outlook.
“This is a precautionary measure that demonstrates Silvercorp’s dedication to safety,” said mining analyst John Smith of Canaccord Genuity. “While there is a short-term production hit, the long-term fundamentals remain strong.”
Silvercorp’s Chinese operations have been a key driver of its growth, with the company benefiting from rising silver prices amid global supply constraints. The company plans to provide an update on the resumption of operations once the safety work is completed.
