Facilitated by China's 1997 Mineral Resource Law, Silvercorp first entered China in 2003 to capitalize on the country's vastly underexplored geological potential. While the Chinese government invested tremendously in geological exploration in the 1950s and 1960s, leading to many discoveries, very little capital or advanced exploration technology was available to exploit them fully. China's 1997 Mineral Resource Law was adopted specifically to enable foreign mining companies to explore and mine in the country -- inviting in the advanced exploration technology, expertise and funding China needed to truly develop its resources.
In 2004, Silvercorp acquired the Ying project, a small producing mine in the Henan province, and exploration over the next two years led to the discovery of high-grade silver-lead-zinc mineralization in a multitude of narrow veins similar to the prolific Coeur d'Alene silver district in Idaho, U.S.A. On March 31, 2006, Silvercorp received its first mining permit from the Ministry of Land & Resources and commercial production of silver, lead and zinc from the Ying mine began the next day. Following on its success at the Ying mine, Silvercorp acquired three nearby mines – HPG, TLP & LM – to consolidate the Ying Mining District in 2007.
Silvercorp is China’s premier silver producer, with production of 6.3 million ounces of silver, 65.3 million pounds of lead, 25.4 million pounds of zinc and 3,300 ounces of gold during the fiscal year ended March 31, 2020. In addition to its operational success, Silvercorp is considered a preferred mining company in the Henan province, having built a solid reputation for upholding high safety and environmental standards and for supporting local community initiatives. Additionally, Silvercorp has become the largest non-state-controlled company and one of the top tax payers in Luoyang City. Our strong brand name has been instrumental in gaining and building the support of city, county and provincial governments in China.
Silvercorp commenced commercial production at its GC silver-lead-zinc project in Guangdong Province in 2014, its newest production base in China. While the Company's near term focus is on cost control, cash preservation, and protecting its strong balance sheet, longer term Silvercorp plans to continue its growth through future consolidation, exploration, mine development and acquisition, with a focus in China.