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.
Vancouver-based silver, lead and zinc miner Silvercorp Metals (TSX: SVM) has been ramping up operations at its Ying and GC mines in China since mid-February with no reportable incidents, and in full compliance with government measures implemented to limit the potential transmission of Covid-19, the company said.
As of this week, the two mines had achieved 94% of planned mining and development stope production capacity. The mills are operating, with an inventory of supplies exceeding one month of operation.
With the country’s industries back in operation, Silvercorp does not anticipate any shortages of supplies.
Silvercorp’s production was suspended on January 17 for the Chinese New Year hiatus and was scheduled to restart on February 1, but with the government extending the holiday period due to the coronavirus outbreak, production restart was pushed back to mid-February.
Silvercorp also noted that the Chinese government had introduced measures to help enterprises like itself that were affected by the extended shutdown, namely a 5% reduction in power prices and a waiver of social welfare fund contributions for five months.
