Silvercorp Metals pauses operations at two China mines to comply with new government safety rules, weighing on shares.
Silvercorp Metals (SVM) fell 5.4% after announcing a temporary slowdown at its Ying and GC mining operations in China. The company is implementing new government-mandated safety systems required across the Chinese mining sector, disrupting production schedules.
Prior to the announcement, SVM shares had traded near a three-month high, reflecting strong silver price momentum. The safety work follows recent regulatory crackdowns in China’s mining industry, aimed at reducing accidents and improving compliance.
The stock’s decline reflects investor concerns over short-term output disruptions, though the company expects operations to resume once safety upgrades are completed.