China stainless steel mogul fights to avoid a second collapse
A debt crisis is threatening the future of one of the world’s top stainless steel producers, Jiangsu Delong Nickel Industry.
Silvercorp Metals (TSX, NYSE: SVM), China’s biggest silver miner that was accused this year of accounting and production fraud in anonymous letters to authorities, has retained independent consultants to confirm resource estimates at four of its properties.
The Vancouver-based silver miner, which operates mainly in China, announced that it has hired AMC Mining Consultants (Canada) Ltd. and Golder Associates Ltd. to prepare updated National Instrument 43-101 reports on four of its properties.
NI 43-101 is a disclosure rule developed by Canadian securities regulators that governs how publicly traded mining companies report scientific and technical information about their mineral projects. The rule covers all written documents, websites and oral statements and is meant to protect investors from misleading, promotional or fraudulent information about mining investments.
The release of the first updated NI 43-101 report will be the GC Project pre-feasibility study (currently being prepared by AMC), which is expected in January 2012. Work on the remaining NI 43-101 reports will start in January 2012 with planned completion dates within 120 days of commencement.
Silvercorp has been in the spotlight since an anonymous letter dated Aug. 29 and addressed to the Ontario Securities Commission, the company’s auditors and various media outlets accused the company of a $1.3-billion accounting fraud.
A second anonymous letter raised questions about the company’s production at its mines in China, ore grades and sales to related parties.
Silvercorp said that the new independent technical reports will take into account additional exploration and development work completed on the respective properties over the last fiscal year, including the 186,627 meters of underground and surface drilling completed at the company’s properties.
Following this announcement, the company’s shares recovered from being down near the $6 mark to close up 4 per cent yesterday.
During 2011, Silvercorp’s stocks were severely affected, falling 50.12 percent.
