Zijin Mining Expects Output Drop After Spill

(Beijing) - Zijin Mining Group Co., China's largest gold producer, announced on July 27 that its 2010 gold production may decrease by one ton due the recent copper acid leak into the Ting River.

The company said in a statement that it will limit production in the accident area in order to reduce environmental risks.

The Zijinshan gold-copper mine owned by Zijin Mining is in Shanghang Country, Fujian Province. On July 3, a wastewater leak in the copper smelting plant spilled 9,100 cubic meters of acid-laced sewage into the nearby Ting River, killing off nearly two thousand tons of fish. Zijin Mining disclosed the accident to the public nine days after it occurred. On July 16, another leak occurred at the site, dumping 500 cubic meters of toxic wastewater into the river.

In June, local fishermen said Zijin Mining's practices were related to a large fish kill in the Ting River near the Zijingshan Mine. However, the company hasn't responded to the charges.

According to the company's annual financial reports, its gold production in 2009 was 75.37 tons, accounting for 73 percent of the company's total revenue. The Zijingshan Mine produced 18 tons of gold last year.

At the same time, some media agencies have claimed that Zijin Mining offered bribes to journalists to conceal the accident. Zijin Mining has denied the accusations. The company's share trading was suspended on July 26 and 27.

On July 15, three executives from the plant were detained by the Shanghang County Public Security Bureau. Chen Junan, head of the Shanghang County Environmental Protection Bureau resigned days after the public announcement of the accident. The Fujian provincial environment protection authority shut down the copper plant.