Silvercorp Metals, a Canada-based silver-and-zinc miner, and Kazakh Invest, the state investment promotion agency, have opened talks on a potential exploration push that could see Silvercorp deploy its digital mine-management model in Central Asia. The company’s leadership team, including founder and chief executive Rui Feng, met officials in Astana last week after posting record annual revenue of US $299 million on output of 6.9 million oz of silver in fiscal 2025.
Canadian Explorer Eyes Kazakhstan Entry
Feng told counterparts the group plans to register a local office and bid for licences covering non-ferrous and precious-metal prospects in the country’s under-drilled east and north-central belts. Initial work would be funded from internal cash flow—Silvercorp generated US $139 million of operating cash last year—and could progress to joint ventures with state-owned enterprises once resources are delineated. Kazakh Invest pledged to fast-track permit reviews and provide introductions to regional geological institutes.
Kazakh Geology and Policy Landscape
Kazakhstan’s mining and metallurgical complex contributed 8 per cent of GDP in 2024, with sector output exceeding 14.3 trillion tenge (about US $28 billion). A new Subsoil Code, effective January 2026, will slash mineral-extraction tax on greenfield discoveries and grant automatic 25-year exploitation licences to explorers that complete feasibility studies. The reforms form part of a drive to attract operators with a proven environmental track record as Astana positions itself as a supplier of critical and battery metals to Europe and North America.
Project Pipeline and Technology Transfer
Silvercorp has built its reputation in China’s Ying district by combining narrow-vein underground mining with real-time ore-sorting, driving cash costs below US $5 / oz. The company says it would replicate that “digital-first” approach in Kazakhstan, integrating 3-D seismic mapping, automated drilling jumbos and AI-driven grade control to lift recovery rates while trimming labour intensity. Management is particularly interested in high-grade polymetallic systems that could yield silver, lead, zinc and tin concentrates for nearby smelters at Ust-Kamenogorsk and Ridder.
Market Backdrop and Capital Access
Despite softer silver prices—spot metal hovers near US $29 / oz, down nine per cent from May’s three-year high—Silvercorp ended March with US $210 million in cash and no debt, giving it financial flexibility to self-fund early drilling. For Kazakhstan, courting mid-tier foreign miners diversifies an investment base still dominated by domestic conglomerates and Chinese strategic partners. The government is also keen to capture value locally: ore exports face a phased-in royalty uplift from 2027, while concentrate producers will be encouraged to install on-site refining.
Company Background and Market Context
Silvercorp operates six underground mines and two mills in China, producing 7.6 million oz of silver-equivalent metal and 65 million lb of lead-zinc last year. It recently expanded into Ecuador via a US $120 million takeover of Adventus Mining. Kazakh Invest is the single-window agency for foreign capital, mandated to shepherd projects through licensing, customs and tax negotiations.
Silver is a dual-use metal, straddling safe-haven investment demand and industrial applications such as photovoltaic paste and electrical contacts. Global silver consumption grew four per cent in 2024 to 1.2 billion oz, while mine supply was flat at 843 million oz, keeping the market in deficit and underpinning long-term price expectations.
