Zijin suspends production in two mines
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Zijin Mining Group Co Tuesday said it has suspended production at two mines in Shandong Province at the request of the local government for safety checks.
This could signal a raft of stronger measures from the government aimed at mining and metals companies following a number of severe accidents and environmental disasters in recent months nationwide. Zijin, based in Fujian Province, was held accountable for a major toxic spill at its hometurf Zijinshan mine last month.
The government of Yantai, Shandong, on Saturday ordered an immediate halt to operations at all non-coal underground mines in the city following a fatal fire at a separate mine.
Annual output at Zijin's Longkou Jinfeng unit, which had a planned output of 340 kilograms of gold this year and produced 161kg in the first half, will be affected, the company said in a filing to the Hong Kong stock exchange.
Work at Zijin's Longkou Jintai unit, engaged in mine exploration, was also halted.
The mines will reopen after rectification and a government inspection, said Zijin, China's largest gold producer.
Meanwhile, Zijin reported a 40 percent increase in first-half net profit owing to higher gold and copper output and lower income tax. Still, it has lowered its full-year output guidance - from 31.1 tons to 30 tons for gold and from 100,000 tons to 90,000 tons for copper - due to last month's leakage that poisoned almost 2,000 tons of fish at the Zijinshan mine.
