Bloomberg quoted Zijin Mining Group Co said output in Yantai, China largest gold producing city was halted after the government demanded safety checks at most mines, a sign that a rising mining death toll is prompting stronger measures.
Zijin said production at the Longkou Jinfeng unit, targeting output of 340 kilograms this year, would be affected. Yantai city ordered a halt for all non coal underground mines on August 7th after a fire at Zhaoyuan Lingnan Mining Ltd.
According to the state run Xinhua News Agency, the fire killed 16 workers and the latest in a series of Chinese mining accidents that left 61 people dead this month and raised renewed safety concerns. Zijin last month leaked toxic waste into the Ting River in Fujian province, poisoning almost 2,000 tonnes of fish in the industry worst spill in two years.
Mr Luo Rongjin a Beijing based analyst with Bocom International Holdings Co said “The recent environmental incident is an outbreak of accumulated problems over the past few years. It reflects management deficiency and a long neglect.”
Zijin based in Fujian province fell 2.1% to HKD 5.48 at 10:13 AM in Hong Kong trading. Shandong Gold Mining Co which had to halt production at four mines fell 2% to CNY 38.90 in Shanghai trading. Zhaojin Mining Industry Ltd which also mines in Yantai rose 0.2% to HKD 18.36.
According to the city government Yantai, in Shandong province, accounted for 15% of China gold production last year and a tenth of its resources. The nation is the biggest producer of bullion. The nation has the world’s worst coal mine safety record, with an average of about seven deaths each day in accidents last year. That compares with 18 deaths for the entire year in the US.
Zijin said mining will resume after rectification works and a government inspection. Work at Longkou Jintai an exploration unit was also halted. Jinfeng had produced 161 kilograms of gold in the first half.
Mr Luo said Shandong accounted for about 1% of Zijin output last year, and the main issue for the company is still the toxic spill at its Zijinshan mine.
Mr Luo Lin chief of the State Administration of Work Safety said “China is at a period with rapid industrialization and urbanization, in which there’s a large gap between production safety conditions and the requirement of safety development.”
(Sourced from Bloomberg)
