Zijin Mining Group Co., China’s largest producer of gold, will examine the management methods after water from a polluted river, a fish and my slain in Fujian Province. “We have previously said that the accident was a result of heavy rainfall, but it’s not only that,” Jugang Zhao, a spokesman, said by telephone from the Shang Hang today. “The accident gives a deeper issues about the company. We believe that closure of the plant and a survey are very necessary.”
The Chinese government is an example of Zijin do they want to draw attention to a more serious attitude towards environmental issues, Bank of America Corp., Merrill Lynch said July 12. Zijin has been criticized for the nine-day delay in the disclosure of the accident to the investors in Hong Kong and Shanghai.
“The company is under enormous pressure from the media and investors for the publication delay, and fortunately for them, there is no death or poisoning of the people involved,” said Owen Liang, a Shenzhen-based Guotai Junan Securities Co. analyst with
Zijin, based in Fujian Province, rose 2.2 percent to HK $ 5.01 in Hong Kong trading on the stock fell yesterday, 10:20 by 12 percent to its lowest level in more than 15 months. In Shanghai trading, the stock was 0.5 percent to 5.73 yuan.
Acidic wastewater containing copper seeped into the Ting River in Fujian Province on July 3, the company said in a filing to the Hong Kong exchange on July 12. Heavy rains caused the spill, had initially said Zijin. Zijinshan mine the company’s biggest asset and accounts for approximately 15 percent of annual production of copper, according to Guotai.
Residents Panic
“The board of directors decided not to disclose the accident on July 3 on the consideration that we do not want to cause a panic to local residents without a clear understanding of the spill impact,” says Zhao. “We discovered that the reason with the help of local authorities on July 6 after the weekend, we have the announcement.”
The company closed its copper smelter at Zijinshan after the accident.
About 1.89 million kg of fish in the tank Mianhuatan in Fujian Province were found dead or poisoned, said Xinhua News Agency July 12. Zijin will likely have to pay a fine and compensation of local fisheries can be about 5 million yuan ($ 738,000) to be achieved, Zhao said yesterday.
“There is a fundamental difference between a delay disclosure for a coal mine accident and Zijin,” Liang said Guotai’s. “All information will cause a delay at a coal mine accident will lead to death, while Zijin, they would be able to test the water in a controlled manner without a panic.”
The government has introduced new environmental standards for producers of commodities such as steel plants and lead producers in the past year, threatening closure if they were not satisfied. Thousands of children were poisoned by lead, zinc and manganese plants in Yunnan, Henan, Shaanxi and Hunan provinces last year.
source:bloomberg
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