Gold Output from Zijin Mining Group Limited After Toxic Leak

China’s Zijin Mining Group , blamed for the worst waste leak in the gold mining industry since 2008, has been ordered to limit their gold mining production.  According to a company filing to the stock exchange, the toxic discharge is leaking from a copper mine in Shanghang county, Fujian province.

On June 13, Zijin was forced to shut the copper plant earlier this month when a toxic spill contaminated nearby Ting River and poisoned almost 2,000 tons of fish.  The leak, which happened on July 3, was only disclosed on July 12.

 According to Zijin, police have detained three executives in connection with the leak: the Zijinshan copper plant’s manager, deputy manager and the head of environment.   The local securities regulator has launched a full investigation into the company. It is possible that the company has violated information disclosure rules. 

Gold output from Zijin, China’s biggest gold producer, will be curbed by one ton. About 30 tons of gold are producted by Zijin each year, 18 tons of which come directly from their mine in Zijinshan. These restrictions, imposed by local authorities, are meant to protect the populations of nearby villages and prevent further environmental risks.

The Guangdong government, not far from Fuijan, banned all fishing in the Ting River at least until the end of this month due to concerns that the spill’s effects will spread to the second province.

The Zinjin Mining Group listed shares were up 3.7 percent to 5.93 yuan earlier today after an initial drop following the announcement of their gold production cuts. Trading in the shares resumed today after a suspension since Monday in anticipation of the production cuts announcement.