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.
Canadian Silvercorp Metals (TSX: SVM-News)(NYSE: SVM-News), China’s biggest silver miner, said Monday that production at its flagship silver-lead-zinc Ying Mine will be interrupted for about five days as a result of power interruptions.
The company said the interruptions were due to work being done to relocate power lines in order to accommodate new highway construction.
“Silvercorp’s management team is working closely with the relevant authorities to ensure power to Silvercorp is restored as soon as possible to minimize the impact on the company’s operations,” the company said in a statement.
Silvercorp bought the project from Silver Standard in 2010 for $15 million in cash and shares.
The Vancouver-based company made international headlines last year after an anonymous letter 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.
The silver miner hired responded by hiring independent consultants to confirm resource estimates at four of its properties.
None of the accusations against the company have been confirmed.
