Shengda Resources: Subsidiary's Mine Under Construction Experiences Safety Incident

On the evening of September 12, Shengda Resources issued an announcement regarding a safety accident at a mine under construction by its subsidiary. On September 11, 2025, a rock-drilling worker from the project department of Zhejiang Zhongye Construction Group Co., Ltd. ("Zhejiang Zhongye"), the mine construction contractor for the company's second-tier subsidiary, Keshenketengqi Dongsheng Mining Co., Ltd. ("Dongsheng Mining"), was struck by a sudden collapse of locally supported roof rock in a roadway while en route to the worksite. Preliminary investigations indicate that the accident occurred approximately 7 meters from the working face in the main haulage roadway ahead of Line 20 at the 1150 middle level of the north air shaft, where a section of blocky rock supported by five anchor rods on the right side of the roadway suddenly detached. One rock-drilling worker from Zhejiang Zhongye's project department, who was passing by the right side of the roadway, was hit and, despite all rescue efforts, unfortunately passed away.

After the accident occurred, Dongsheng Mining immediately activated its emergency response plan, carried out emergency rescue operations, and fully organized disaster relief, search and rescue, cleanup, and follow-up work. The incident was reported to the local emergency management department in accordance with relevant regulations and procedures. The specific cause of the accident is still under further investigation, and the company will fully cooperate in the accident investigation and subsequent work. According to relevant regulations, underground operations at Dongsheng Mining have been temporarily suspended, and follow-up and related work are proceeding in an orderly manner.

In the announcement, Shengda Resources expressed deep condolences for the deceased in the accident and extended sincere sympathies to the family members of the deceased. The company will urge Dongsheng Mining and all engineering construction and contracting units to actively cooperate with the investigation, conduct safety education and training, comprehensively identify potential safety hazards and carry out timely rectifications, and resume construction as soon as possible. Meanwhile, the company will earnestly learn from this accident, strengthen safety production management and supervision, and prevent similar accidents from recurring.

Regarding the impact on the company, the announcement indicated that the company indirectly holds shares in Dongsheng Mining through its controlling subsidiary, Inner Mongolia Yindu Mining Co., Ltd.Dongsheng Mining's certified mining minerals include silver ore, lead, zinc, gold, gallium, arsenic, and pyrite, with a production scale of 250,000 mt/year. The mine is currently under construction and has not yet been completed or commissioned.

The suspension period for Dongsheng Mining's mine construction will depend on the progress of the accident investigation. This accident has not yet had a significant impact on the commissioning time of Dongsheng Mining's mine, and it will not materially affect the company's current operating performance. According to the contract signed between Dongsheng Mining and the mine contractor, all responsibilities and losses for safety accidents occurring during the construction period are borne by the contractor.

Public information shows that Shengda Resources is a leading enterprise in China's silver industry, and the company's main business is the mining, processing, and sales of precious and non-ferrous metal ores. The company's main products include silver ingots, gold ingots, gold and silver concentrate powder, silver-bearing lead concentrate powder, silver-bearing zinc concentrate powder, nickel-containing products, and copper-containing products.

It is worth mentioning that the company's stock opened higher and continued to rise today, ultimately closing at the daily limit. As of the market close, the stock price was reported at 21.63 yuan per share, with a total market capitalization of 14.92 billion yuan.