Brief: China Silver Says Jiangxi Longtianyong Nonferrous Metals Was Ordered To Suspend Production

China Silver

07/06/2021 16:08

June 7 (Reuters) - China Silver Group Ltd  0815.HK :
    * JIANGXI LONGTIANYONG NONFERROUS METALS CO GOT TWO
ADMINISTRATIVE
PENALTY NOTICES AND A RECTIFICATION NOTICE BETWEEN 23 APRIL & 20
MAY
    * BUREAU ORDERED JIANGXI LONGTIANYONG TO SUSPEND PRODUCTION
ACTIVITIES 26 APRIL ONWARDS PENDING COMPLETION OF RECTIFICATION
MEASURES
    * IT WAS FOUND PRODUCTION & STORAGE FACILITIES OF JIANGXI
LONGTIANYONG HAD BEEN IN CONTRAVENTION OF CERTAIN NATIONAL
ENVIRONMENTAL LAWS
    * RECTIFICATION MEASURES EXPECTED TO INCLUDE DISPOSAL OF
CERTAIN
HAZARDOUS WASTE STORED IN PRODUCTION WORKSHOPS AND WAREHOUSES
    * MEASURES EXPECTED TO INCLUDE DEMOLITION OF CERTAIN
EXISTING
NON-COMPLIANT FACILITIES AND CONSTRUCTION OF CERTAIN NEW
COMPLIANT FACILITIES
    * JIANGXI LONGTIANYONG ENGAGED ENVIRONMENTAL SPECIALIST TO
PROVIDE
RECOMMENDATIONS ON  RECTIFICATION MEASURES TO ADDRESS BUREAU'S
CONCERNS
    * SUSPENSION EXPECTED TO HAVE A DIRECT NEGATIVE IMPACT ON
TOTAL
REVENUES FOR FY ENDING 31 DEC 2021
    * - CARRYING VALUE OF JIANGXI LONGTIANYONG'S INVENTORY OF
CERTAIN
RAW MATERIALS EXPECTED TO BE REDUCED TO ZERO FROM RMB2.4 BILLION
    * JIANGXI LONGTIANYONG EXPECTS TO DEMOLISH NON-COMPLIANT
FACILITIES WHICH WILL RESULT IN A REDUCTION IN VALUE OF GROUP'S
TOTAL ASSETS
    * JIANGXI LONGTIANYONG EXPECTS TO CONSTRUCT NEW COMPLIANT
FACILITIES WHICH WILL INCREASE GROUP'S CAPEX FOR FY ENDING 31
DEC 2021

Source text for Eikon:  ID:nHKS5gVWlP 
Further company coverage:  0815.HK 

 (Reuters.briefs@thomsonreuters.com)