Silvercorp Metals Inc (TSE:SVM) (NYSEAMERICAN:SVM) announced on Tuesday that its TLP, LME, LMW and HPG mines in the Ying mining district, in Henan, and GC mine in the Guangdong province, have been certified as green mines in China.
The Canadian mining company producing silver, lead and zinc metals in concentrates from mines in China said the coveted green mine designation is awarded to mines that “minimize adverse impacts on the environment” and adopt scientific design and measures to ensure sustainable development from mine development to closure.
Generally, a green mine designation allows for more favourable treatment from different levels of government, including in relation to priority rights to mining resources, improved land security for mine construction, and finance and tax support through coordinated policies.
On October 23, Silvercorp’s TLP, LME, LMW and HPG mines passed a six-day onsite inspection by an independent third party appointed by the Department of Natural Resources of Henan Province, with scores topping 80%, paving the way to being enlisted as “National Green Mines.” The company said that final certification will be issued by the Ministry of Natural Resources of China.
The GC mine also passed an independent, onsite inspection and assessment to be enlisted as a “National Green Mine” by the Department of Natural Resources of Guangdong Province on September 26 this year. Ultimately, Silvercorp’s SGX and HZG mines both received the designation in November 2015.
To qualify as a “National Green Mine”, amongst other things, the mine owner must not have been penalized in the past three years by national resources or environmental regulators. Green mine assessments in China cover a broad range of issues, which include compliance with relevant mining rights and licenses, industrial policies, national mineral resources plans, and geological environment protection plans.
Most significantly, to attain the certification, there have to be no reported production accidents, deaths, environmental accidents, or administrative penalties imposed within the two years prior to the application.
To qualify, Silvercorp has employed new energy-saving technologies and processes to reduce energy consumption at its mines.
Contact the author Uttara Choudhury at uttara@proactiveinvestors.com
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