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February 1, 2011

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Zijin fined US$4.5m for deadly toxic spill

ZIJIN Mining Group Co, China's largest gold producer, has been fined 30 million yuan (US$4.5 million) by a court in Fujian Province for a major pollution accident last year.

The July toxic spill at the company's Zijinshan gold and copper mine poisoned thousands of fish, causing losses of 22.2 million yuan, and also polluted drinking water for tens of thousands of people.

Zijin was ordered to pay the fine by the Xinluo District Court in Longyan City on Sunday, the Shanghai- and Hong Kong-listed company said yesterday in a filing.

The court allowed a deduction of the administrative fine of 9.56 million yuan - imposed by Fujian's environmental protection authority - which Zijin has already paid.

Five managers and employees directly responsible for the incident were sentenced to imprisonment of up to four years and six months and were also ordered to pay fines, the Shanghang, Fujian-based company said.

China's press watchdog has said Zijin had tried to bribe reporters to cover up the toxic spill.

The company is also being sued by a city government in Guangdong Province for 19.5 million yuan over a fatal dam collapse at a tin mine there in September, which killed at least 22 people.



 

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