Zijin Mining 2899

[winston]

Not vested.

River of red tipped for Zijin after smelter has second leak

Ellen Wang

Monday, July 19, 2010

Zijin Mining (2899) may face a loss of more than 700 million yuan (HK$803.24 million) and a series of fines totaling more that 500 million yuan after another leak was found at a smelter belonging to the mainland's largest gold producer.

Two executives were suspended from duty on Saturday, one day after the second leak at its Zijinshan plant in Fujian province was discovered. Three senior executives and four local officials were detained and suspended for the first leak, which contaminated the Ting River and a reservoir on July 3, killing tonnes of fish.

Xinhua News Agency said Fujian provincial authorities will take legal action against government officials and Zijin executives.

The miner reportedly ignored orders given by the local environmental bureau to repair the reservoir after an earlier breach last September, Reuters reported.

In reply to demands from environmental agencies to conduct a "complete overhaul" of existing mine and smelting plants to prevent further leaks, Zijin said that it will invest 100 million yuan in a water plant the state is building near its mine.

This is in addition to the 200 million yuan that it plans to spend on environmental and risk measures as part of its restructuring plan after the incident. Zijin has stopped production at its Zijinshan plant for an indefinite period, which is expected to cost the miner 350 million yuan, mainland papers said.

If the fines and compensation to local fishermen are included, Zijin could be forking out up to 700 million yuan or more, the China Times forecast.

The gold producer could also be fined as much as 500 million yuan by the China Securities Regulatory Commission for failing to disclose the pollution immediately, Shanghai-based fund manager Wu Kan at Dazhong Insurance told Bloomberg.

http://www.thestandard.com.hk/news_deta ... 00719&fc=1

[winston]

China's Zijin 'offered journalists cash amid spill'

China's Zijin Mining Group offered cash to journalists covering a toxic spill at a mine it operates in the southeast, state media said Monday, in an apparent bid to gain favourable coverage.

Poisonous waste water from the Fujian province copper mine operated by Zijin -- China's top gold producer -- has contaminated a major river in the area, killing off about 1,900 tonnes of fish.

An unnamed business magazine was offered 60,000 yuan (8,850 dollars) by Zijin earlier this month after it sent reporters to cover the leak, the China Business News and the China Youth Daily said.

They cited the chief of the unnamed magazine's Fujian bureau.

Journalists from at least six other media organisations were offered envelopes containing thousands of yuan in cash, in some cases delivered by Zijin staff to hotel rooms where journalists stayed, the reports said.

One journalist quoted a Zijin official as saying the money "was a note of appreciation for our hard work", the Shanghai-based China Business News said.

Zijin denied the allegations, according to the reports. AFP was not immediately able to reach the company for comment.

Zijin, listed in Shanghai and Hong Kong, was suspended from trading on Monday pending an announcement about "price-sensitive information", according to filings with the two bourses.

The company issued a statement last week apologising for the July 3 leak, which was only disclosed by the company on July 12, nine days after it was discovered.

Investigators have determined that 9,100 cubic metres (320,000 cubic feet) of waste water from a sludge pond had flowed through an "illegally built passage" into the Ting river in an initial leak.

A further 500 cubic metres of waste water had seeped into the Ting but that subsequent leak was quickly contained, the China Daily said last week, citing company sources.

Zijin said earlier that police had detained three executives over the spill and the securities regulator had launched an investigation into the company over possible violation of information disclosure rules.

The practice of Chinese companies offering cash to domestic reporters to buy publicity is widespread, state media reports have said.

Source: AFP Global Edition

[winston]

Not vested. Bad news comes in threes and they just got their third one ...

DJ MARKET TALK:Zijin Down 1.3%; Negatives Won't Go Away - Tanrich

1118 [Dow Jones] Zijin (2899.HK) last down 1.3% at HK$5.89 despite gold price hitting new record highs, as sentiment affected by news of Guangdong province mine suspension in wake of typhoon Fanapi.

"Negative news won't go away from Zijin," says Tanrich's Jackson Wong, as incident follows production cut in its Zijinshan copper mine in July, suspension of its Shandong mining operations in August affected by a fire.

Recommends long-term investors buy stock as catch-up play as it's still below HK$6.00, with medium-term target at around HK$8.00-HK$9.00.

Source: Dow Jones Newswire

[winston]

Not vested

DJ Zijin: Tailings Pond Dam At Tin Mine Collapses After Typhoon

HONG KONG (Dow Jones)--Zijin Mining Group Co. (2899.HK) said Tuesday the major dam at a tin mine's tailings pond collapsed following mud and rock slides caused by Typhoon Fanapi, which left the mine in Guangdong province without electricity, communications and transport services.

The company said it hadn't received any reports of casualties or losses at Yinyan Tin Mine, adding the loss of communications has hindered its efforts to assess the impact of the collapsed tailings pond dam on the mine.

The company didn't specify whether it suspended operations at the tin mine, which started trial production.

The tailings pond at Yinyan Tin Mine is at the initial stage of operation, Zijin said in a statement, adding it will provide further details on the collapsed dam when they become available.

Leaders from Guangdong's Xinyi city went to the mine to supervise relief work and the company's vice president as well as officers responsible for environmental protection and safety are travelling to the site to assist, the company said in a statement.

Source: Dow Jones Newswires;

[winston]

Not vested

DJ MARKET TALK: UBS Cuts Zijin Target To HK$6.00 Vs HK$6.66
August 16, 2010

1620 [Dow Jones] STOCK CALL: UBS cuts Zijin (2899.HK) target to HK$6.00 vs HK$6.66, after lowering FY10, FY11 earnings forecasts by 9.9%, 9.7% to reflect negative impact from recent news of river contamination by its copper mine.

"The pollution incident is likely to put Zijin's every move under scrutiny by regulators and media." House says following incident at Zijinshan Copper Mine Plant, Zijin announced it will reduce production of gold by 1.1 tons, copper by 10,000 tons, and iron ore concentrate by 120,000 tons in 2010.

However, as plant not expected to resume full production until 2H11, house cuts 2011 gold and copper production assumptions as well. Keeps stock at Neutral.

Source: Dow Jones Newswire

[winston]

Not vested

DJ MARKET TALK: Zijin May Underperform; Mine Halt Loss At CNY19M

0906 [Dow Jones] Zijin (2899.HK) may underperform vs broader market after news company says direct economic loss from production halt at its Yinyan Tin Mine at about CNY19 million; halt caused by heavy rainfall in most parts of Xinyi city last week due to a typhoon.

Company says incident hasn't caused any pollution to river water quality downstream. Mark To at Wing Fung expects Zijin won't fall sharply on news, given recent strength in gold prices; but incident follows production cut in its Zijinshan copper mine in July, suspension of its Shandong mining operations in August affected by a fire.


Source: Dow Jones Newswire

[winston]

Not vested

DJ MARKET TALK: Zijin +1.4%; Heavy Rain Impact Small - Guoco

1157 [Dow Jones] Zijin (2899.HK) turns higher, last +1.4% at HK$5.90 vs HK$5.79 intraday low, likely due to bargain-hunting after stock's 2.5% fall over past 2 sessions on news about heavy rain on its Yinyan tin mine (announced Sept. 21 after market close).

Company expects heavy rain to cause CNY19 million loss (announced Sunday), but Becky Yuen at GuocoCapital says this unlikely to hurt share price much as Zijin still expected to report net profit of CNY5 billion for FY10 (+17% on-year).

"The impact is not significant. I think some bargain-hunting interest has lent support today." Keeps at Sell with HK$4.90 target.

Source: Dow Jones Newswire

[winston]

Not vested

Dam collapse deaths add to gold miner's woes

Zijin Mining Group (2899) has revealed that four people died after a tailings dam collapsed at a tin mine.

It added to safety concerns at China's biggest gold producer two months after another accident poisoned almost 2,000 tonnes of fish.

The dam at Zijin's Xinyi Yinyan mine burst last Tuesday after a landslide triggered by heavy rains from Typhoon Fanapi, the Fujian-based company said.

"The break in the tin mine dam resulted in damages to some houses, farmland and water facilities downstream and caused casualties."

The four deaths were downstream at Dadong village, and the Guangdong provincial government is now investigating.

The incident came after Zijin Mining pledged to improve its management and invest more on safety measures after toxic waste from a copper mine leaked into the Ting River in Fujian. That led to a probe by the securities regulator and police.

A safety permit was obtained from the Guangdong province for its tin tailing pool, the company said.

"We lack the official investigation results to know what happened," a Shanghai-based analyst said. "This time it may just be an accident caused by the landslide."

Zijin rose 2.8 percent to HK$5.98 yesterday. The shares gained 2.6 percent to close at 6.42 yuan (HK$7.44) in Shanghai.

BLOOMBERG


http://www.thestandard.com.hk/news_deta ... 00928&fc=2

[winston]

Not vested

DJ Zijin: Halted Shares On Statement On July Chemical Leak Penalties

HONG KONG (Dow Jones)--Zijin Mining Group Co. (2899.HK) halted trading of its shares in Hong Kong on penalties following a major toxic chemical leak at one of its copper plants in early July, the Hong Kong and Shanghai-listed company said Monday.

The company, China's biggest gold producer by output, didn't provide further details in the statement.

China's bourses are closed for the National Day holiday and will reopen Friday.

On July 3, a major toxic chemical leak at the company's Zijinshan Copper Mine hydro-metallurgical plant killed tons of fish in the nearby Ting River in Fujian province. Production at the plant has been suspended since then.


Source: Dow Jones Newswires

[winston]

Zijin Fined Less-Than-Expected $1.4 Million for Toxic Waste Spill in July

Zijin Mining Group Co., China’s largest gold producer, was fined a less-than-estimated 9.6 million yuan ($1.4 million) for the July acid-waste spill that poisoned almost 2,000 metric tons of fish.

The Fujian environmental protection agency has ended its investigation and the company needs to take more measures to clean up the pollution, the Fujian-based company said in a statement to the Shanghai stock exchange today.

Zijin may be fined as much as 500 million yuan for the leak, according to Wu Kan, a Shanghai-based fund manager at Dazhong Insurance Co.

Zijin spilled 2.4 million gallons of acidic waste from its Zijinshan copper mine in Fujian province, polluting the Ting river and poisoning enough fish to feed 72,000 people for a year. Chairman Chen Jinghe will have to focus on cleaning up and expansion plans may be delayed after the accident, according to UOB-Kay Hian Ltd.

The leaks led to “heavy pollution in the Ting River, and direct economic loss of 31.9 million yuan,” Zijin said in the statement.

Zijin’s shares have dropped 11 percent this year, and were suspended on Oct. 4 pending the statement.

The July 3 leak caused “enormous economic losses” and was a “big lesson,” the company had said, pledging to step up inspections and invest 200 million yuan ($30 million) within a year to improve its environmental performance.

In September, Zijin said four people died after a dam at its tin mine collapsed following heavy rains from Typhoon Fanapi, sparking an investigation by the Guangdong provincial government.

Penalties

Zijin and its waste management staff may be liable for criminal penalties, Sonia Lu, a Guangzhou-based lawyer at Alpha & Leader Law Firm, said in July. Environmental pollution incidents with “especially serious consequences” carry a prison sentence of three to seven years plus fines, Lu said.

A nine-day delay in disclosing the spill prompted the securities regulator to investigate. The Zijinshan copper plant’s manager, deputy manager and the head of environment were detained after the leak, according to the company.

Zijin cut its gold-output target by a ton to 30 tons, copper target by 10,000 tons to 90,000 tons because of the accident, according to its August earnings statement. The company produced 30.65 tons of gold last year including 18 tons from the Zijinshan mine, according to its annual report.

http://www.bloomberg.com/news/2010-10-0 ... -july.html