Shares in China’s top gold producer Zijin Mining Group fell yesterday after a probe found it ignored warnings over excessive wastewater discharge at a mine where a toxic spill occurred early this month.
Zijin published the results of the government investigation on Friday as a sludge pond at the company’s copper mine in Fujian Province sprang another leak and more officials were punished over the original July 3 mishap.
The probe found that the company had ignored a government warning in September last year that said the volume of wastewater entering the Ting River was too high and repairs were needed.
Zijin also failed to heed warnings to repair an automatic online water quality monitoring system located downstream from the plant, which would have detected the increasing volume of wastewater flowing into the river.
The first leak, which Zijin initially said was the result of heavy rains, contaminated the Ting — a major waterway — and killed off nearly 1,900 tonnes of fish, reports have said.
Investigators later found that the 9,100m³ of wastewater escaped from the sludge pond through an “illegally built passage” into the river.
A further 500m³ of waste water seeped into the Ting late on Friday, but the leak was quickly contained, the China Daily said yesterday, citing company sources.
Shanghai-listed shares in Zijin fell 1.15 percent yesterday, while the broader market was up in morning trade.
Zijin has pledged to pay compensation to fish farmers who were affected. Production at the mine has been suspended.
Zijin has confirmed that police have detained three executives over the spill. Three local officials have been sacked, and the head of the county government has been suspended pending further investigation, state media said.
The Ministry of Environmental Protection and local authorities have also ordered Zijin to make modifications at the mine to prevent further leakage.
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